The six to 12 month term deposits surged to around AED190 billion during the first four months of the year, a 14.9 growth from AED165.3 billion by the end of 2017
The growth is attributed to a rising demand over this type of deposits following the significant increase in their value and their higher returns in comparison with other investment vehicles; the deposits account for about 22.7 per cent of total term deposits at UAE banks, valued at around AED837.8 billion by the end of April, reported WAM.
According to CBUAE figures, the month of April saw the highest performance of this type of deposits with a total inflow of around AED16 billion during the month, against AED8.7 billion during the period from January through March.
In the meantime, three-month term deposits valued AED474 billion by the end of the first four months of the year, comprising 56.6 per cent of the total of other term deposits, estimated at AED837.8 billion by the end of April.
Term deposits longer than one year, on the other hand, declined to AED34.8 billion by April from AED43.6 billion by the end of 2017.