If there is one thing that is true about modern society, is that the easier it gets to apply for finance, the harder it becomes to save. Many don’t believe they have the means to save, however, when they need to get some money together for another loan, the funds are there. The issue is not that there isn’t a willingness to commit to savings, but rather that savings aren’t a priority.
Add to that the charges that some banks levy on their savings accounts, and it’s no wonder customers are reluctant to see their money go down the drain. Banks need to make savings accounts a little safer, a little easier, and a little more attractive. National Bank of Abu Dhabi Savings Accounts offer customers a variety of options, but do they tick all the boxes? This review tackles that head on.
Read here to learn more about the savings product range at Standard Bank.
About National Bank of Abu Dhabi
National Bank of Abu Dhabi is not just rated as the safest bank in the Middle East, it also happens to be a bank that pushes beyond boundaries and breaks records. It’s hard to believe the bank is still shy of 50 years in the business.
The bank was founded by the late Sheikh Zayed in 1968. In the seventies, the bank decided to expand and the first country to receive a branch was Egypt. The bank continued a conservative path of growth and it wasn’t long before it was able to increase its footprint even more. Accolades started rolling and the bank soon made the World’s 50 Safest Banks by Global Finance list.
This set the tone for the bank, who continued their conservative market growth strategy. This paid off in 2008 when the rest of the world was dumped in a financial crisis. Frugal fiscal policies saved the bank and even managed to see it increase profits. This continued at a steady pace and in 2010, the bank broke the record as the first to reach $ 1 billion in profits in the UAE.
For a full review on National Bank of Abu Dhabi, read here.
Savings and Investments – How to Choose
There are a number of resources out there that provide quick guides how to get rich quick with investments and other financial instruments. However, the frugal and conservative approach has its advantages as well. A savings account is far different to an investment strategy and the number 1 differentiator is risk. It is advisable to have a combination of both in order to give customers the best results.
Savings don’t ordinarily carry risk, however, every investment account that is not branch based carries a certain degree of risk, even when considered very low risk. This means that customers who have funds in an investment and the market conditions change, stand to lose a portion or even all their funds.
Funds and Options
Those who wish to put their funds into savings, don’t have to worry about funds. The options on the savings would be whether customers prefer to have access to the funds in the short term or prefer to tie it up for some time.
Fees and Commissions
Savings accounts carry minimal fees if any at all. Investments, on the other hand, tend to have various fees that are deducted at inception and throughout the course of the investment, such as commission and fund management fees.
Savings are suitable for those who wish to have a short-term vehicle in which to grow their wealth. Investments, on the other hand, should be approached as a long-term savings strategy.
Surplus and Nest Egg
Those who are still building up a nest egg or emergency savings should do so where the funds are easily accessible in an emergency. There should also be no risk attached to these funds, or they should have a guarantee. Investments are for surplus amounts over and above normal and emergency savings.
National Bank of Abu Dhabi Savings Accounts Product Offerings
Personal Call Account
This is a savings account that is often linked to a current account. Furthermore, this has a sweep facility to ensure customers always remain in credit.
- Customers earn interest on amounts above AED 50,000.
- The account is available in AED and major currencies.
- This is the ideal account for short-term savings.
- Finally, customers will pay a low balance charge.
Elite Gold Savings Account
This is a tiered interest rate savings account which means higher balances will attract higher interest rates. Furthermore, the account is exclusive to NBAD Elite Gold customers.
- The first international remittance is free on the account.
- Furthermore, customers will earn NBAD Stars on purchases with their debit cards.
- They will also enjoy 4 free international and GCC ATM cash withdrawals per month.
- With this account, customers enjoy the highest level of services.
- This is a multi-currency account with no minimum balance requirement.
- Customers will also earn competitive interest rates.
- Finally, customers are required to maintain a Total Relationship Balance of AED 500,000 or more.
Personal Savings Account
With this account, customers enjoy simple savings with competitive rates. Furthermore, customers also enjoy free lounge access at selected airports.
- Customers receive a free MasterCard Platinum Debit Card with this account.
- The account is available in Dirham and other major currencies.
- Also, customers are required to maintain an average balance of at least AED 3,000.
- Finally, customers do not pay a monthly account service fee, only transactional fees.
Customers who prefer to put their funds away for a period will find this account suitable.
- The account has terms of 2, 3, 4, 5, 7, and 10 years available.
- It supports leading currencies such as AED, USD, GBP, and EUR.
- Customers choose to have their interest paid monthly, semi-annually, or on maturity.
- Furthermore, customers are required to deposit a minimum of AED 30,000, or equivalent in other currencies.
- Finally, customers enjoy competitive interest rates.
Fixed Deposit Account
This is a fixed deposit account that provides customers with quite a bit of flexibility. Furthermore, the account can be opened in all leading currencies including AED, USD, GBP, and EUR.
- Customers can top up a fixed deposit based on a standing instruction from another account.
- The account provides a competitive interest rate.
- Finally, customers are required to maintain a minimum balance of AED 5,000.
What We Like About National Bank of Abu Dhabi Savings Accounts
This is a grouping of savings accounts that will cover a number of savings needs. These stretch from building up a reserve for emergencies, right through to saving for specific events. Also, there are options available to those who wish to put funds away towards a specific goal, such as education or even the purchase of a property.
These accounts carry minimal fees and the transactional charges are transparent. This allows customers to accurately budget. Furthermore, the deposit accounts have a fixed term and customers can safely determine the outcome of the deposit as the rate is revealed when the account is opened. This allows customers to incorporate the interest into their income, or to allow it to compound with the account to better suit their future needs and enjoy the growth.
Finally, the deposit amounts are fairly high, which requires customers to be serious about their savings. It is also the perfect opportunity for customers to create wealth and not just play at it. There is also the list of benefits that customers have access to thanks to the Platinum MasterCard linked to some of the accounts.
Those who wish to know more about the current accounts on offer at National Bank of Abu Dhabi should read here.
What We Don’t Like About the Abu Dhabi Savings Accounts
There is no real room for those who earn less than AED 3,000 to enter the market with this bank. Not even the savings accounts grant customers access with less than this. This means that those who form part of the lower income groups will have to find banking services elsewhere.
Furthermore, the accounts also carry pretty steep transaction charges, which means that customers will have to work hard to achieve growth on their savings. These charges have the potential to eat into the capital if customers aren’t careful.
Finally, for a bank that boasts a whole array of elite accounts, there isn’t much of a variety. There is no starter account, children’s account, professional account, or even anything that remotely resembles an account that would benefit those over the age of 55.
Critical Reviews Rating National Bank of Abu Dhabi Savings Accounts – 5 of 10
This was National Bank of Abu Dhabi’s chance to redeem itself as far as accounts are concerned. The current accounts could have done a little better, however, the exclusion in terms of minimum deposit requirements is excusable at that level. For a savings account, it’s not. Customers need access to basic accounts that won’t expect them to keep such a large amount in the account as a minimum balance. Although this is a nice way to kickstart a good savings, life happens.
The exclusionary approach might be part of the bank’s strategy but it costs them dearly in their product rankings. Savings accounts should make it easier for customers to want to save, not make it harder for the average household. This turns customers away to seek assistance from other institutions, which is why we cannot rank this well. A bank should be more than just a profit churning machine.
Read here to find out whether Bank of Ireland had the same rating.