by admin
With Bank Deposit Rates at 5.5%, Many Investors Find 2-Year Lock-Ins Ideal
Considering the UAE’s 10-year golden visa? Dh2 million-bank deposit option gains traction. An increasing number of individuals seeking long-term UAE residency are turning to the Dh2 million bank deposit route. This approach is viewed as a sound investment, with deposit rates currently ranging from 3.99 percent to 5 percent, reflecting a series of interest rate hikes initiated by the US Federal Reserve since March 2022.
The bank deposit option particularly appeals to investors who have the financial means but prefer not to invest in real estate. The nearly five percent returns on these deposits, although subject to a lock-in period, are proving to be an attractive choice.
While property investments remain a dominant driver of the UAE’s Golden Visa program, the bank deposit scheme is gaining momentum. The country’s reputation as an ideal destination for retirees and seasoned freelance professionals further supports the increasing popularity of this visa option.
A Straightforward Choice
The appeal of the bank deposit option for securing the UAE Golden Visa lies in its straightforward nature. Investors have a well-defined plan regarding the duration of their deposits and the expected returns.
James Swallow, Commercial Director at PRO Partner Group, highlighted that the deposit and interest rates remain fixed, offering a streamlined path to obtaining the UAE Golden Visa. In contrast, real estate and business investments involve more complex evaluation processes, including approvals from entities such as the Dubai Land Department.
The simplicity of the deposit scheme is a key driver behind its rising popularity. It essentially requires obtaining a letter from a UAE-accredited investment fund and submitting it to immigration authorities.
Understanding the Dh2 Million Deposit Requirement
To secure the UAE Golden Visa, the Dh2 million deposit must be retained in the individual’s bank account for a prescribed minimum period of two years, after which it becomes eligible for withdrawal. It’s essential for individuals to carefully review the terms outlined in their bank’s fixed deposit letter, as certain banks may have fixed period terms exceeding the standard two-year requirement for the Golden Visa.
This is a critical consideration for all individuals considering this path to long-term residency. As one market source emphasized, “The visa’s prerequisite is a two-year lock-in period, with the bank holding it as a lien for two years only. However, there have been cases where the fixed deposit term has expired, and the bank’s position remains unclear.
Banking sources also noted that fixed deposit terms may vary among institutions, underscoring the importance of investors exploring various options to find one that aligns with their specific preferences.
