Minimum age
21 years
RAKBANK Recurring Deposit
RAKBANK Recurring Deposit builds savings from AED 350 a month over 1 to 5 years. It pays 2% or 2.5% a year, with all interest paid at maturity.
An existing account with RAK is required, such as RAKBANK Current Account.
At a glance
Key facts
Monthly ContributionAED 350
TenuresFlexible
Interest PayoutAt maturity
Account access
No debit card included.
Open in the app.
An existing account with the bank is required.
A recurring deposit is a fixed deposit you fill a little at a time. You pick a monthly amount between AED 350 and AED 10,000 and a tenure of 1 to 5 years. Each month the bank collects that amount from your linked RAKBANK current or savings account, and at the end you receive everything you paid in plus interest. Only one deposit a month goes in, so you cannot add extra. You need to be at least 21 and already hold a RAKBANK account, for example the RAKBANK Savings Account. The account comes with no debit card or cheque book.
Who can open it
Minimum salary
No minimum
RAKBANK account needed
A current or savings account funds the monthly contribution
Adults only
The deposit cannot be opened in a minor's name
Fees and balance
Minimum monthly contribution
AED 350
Interest
Interest is paid at maturity. One monthly deposit of AED 350–10,000 is permitted. Early withdrawal before 6 months pays no interest. For deposits up to 2 years, withdrawal at 6–below 12 months pays 1%, or 12–below 24 months pays 1.50%. For deposits of 3–5 years: 6–below 12 months pays 0.50%; 12–below 24 months 1%; 24–below 36 months 1.25%; 36–below 48 months 1.50%; 48–below 60 months 2%.
Available deposit tenures
| Tenure | Annual rate |
|---|---|
| 12–24 months | 2% |
| 36–60 months | 2.5% |
| Tenure | Annual rate |
|---|---|
| 12–24 months | 2% |
| 36–60 months | 2.5% |
In plain words
- Annual rate
- The rate is quoted for a full year. Money held for part of a year earns the matching part of it. More on this
- Tenure
- The length of time you agree to leave the deposit in place. You choose it when you open the deposit, and the rate you get depends on the tenure you pick. More on this
- Paid at maturity
- Maturity is the day the term you chose ends. The interest is paid then, together with the amount you deposited. More on this
How your interest is worked out
The rate is fixed and depends on the tenure you choose at the start. It is 2% a year for a deposit of up to 2 years, and 2.5% a year for 3 to 5 years. Interest is worked out daily on the total you have built up so far, so early months earn on a small amount and later months on a larger one. It is paid in one go at maturity. If the money is not in your linked account when the bank collects, that month's contribution is skipped. There is no penalty for a missed month, but you end the tenure with less saved than planned. You can make up a missed contribution at a branch, and the bank sends SMS reminders for upcoming and missed payments.
Benefits
Monthly Savings Plan
Monthly contributions from AED 350 over a tenure of 1 to 5 years
No Missed Payment Penalty
A missed monthly contribution carries no penalty
SMS Reminders
Text reminders for upcoming and missed contributions
Instant Online Opening
Existing customers can open the deposit instantly in digital banking
How to open
Before you apply
1.Open in the app.
2.An existing account with the bank is required.
3.No minimum salary.
4.Minimum monthly contribution: AED 350.
5.No debit card included.
Application steps
1.Hold a RAKBANK current or savings account. Monthly contributions are collected from it.
2.Choose a monthly amount from AED 350 to AED 10,000 and a tenure of 1 to 5 years.
3.Open the deposit through digital banking, where it opens instantly for existing customers.
4.If you are new to RAKBANK, open a transactional account and the Recurring Deposit together at a branch.
5.Keep the monthly amount available in the linked account for collection.
Good to know
Good option for
People who want to save a set amount from each month's income and have no lump sum to start with. It suits a goal that is 1 to 5 years away.
Consider another account if
You already have a lump sum, in which case Fixed Deposit Plus starts at AED 15,000, or you might need the money within the first 6 months.
Withdrawing before maturity
You can close the deposit early, but the timing matters. Close it within the first 6 months and no interest is paid on anything you have put in. From 6 months onward you earn a reduced rate, set by how long the deposit ran and by whether you booked it for up to 2 years or for 3 to 5 years. The reduced rate rises the longer the deposit has been in place, and it stays below the rate for completing the tenure.
Frequently asked questions
Get answers to common questions about the RAKBANK Recurring Deposit