UAE Fixed Deposit Calculator (Interest & Wakala Profit) 2026
Maturity value and interest or Islamic wakala profit on an AED fixed deposit with simple or compound payout, monthly top-ups, effective annual yield and the real return after inflation — no tax in the UAE.
| Total deposited | — |
|---|---|
| Interest / profit earned | — |
| Effective annual yield | — |
| Monthly income if paid out | — |
| Tax | — |
| Real value after inflation | — |
In short
A UAE fixed deposit pays the agreed rate for the term — AED 100,000 at 4% for 12 months returns AED 4,000 (AED 4,074 with monthly compounding) — with no tax on the interest; Islamic banks offer the same product as a wakala or mudaraba deposit at an expected profit rate, and breaking the deposit early usually forfeits most of the return.
Who this is for: Savers in the UAE comparing bank fixed-deposit and Islamic wakala offers, choosing between monthly payout and reinvestment, and expats checking the real return after inflation.
How fixed-deposit returns are calculated
A fixed (term) deposit pays a rate agreed at the start for a fixed term. If interest is paid at maturity it is simple interest: amount × rate × months ÷ 12. If it is credited and reinvested monthly, quarterly or yearly, each credit earns interest itself and the effective annual yield is (1 + rate ÷ n)ⁿ − 1 — slightly above the quoted rate. A recurring deposit adds a fixed top-up each month, which the calculator compounds from the month it is paid in.
In the UAE there is no tax on deposit interest, so the maturity value is what you receive; the calculator also deflates it by your inflation assumption to show the real return. Islamic banks offer the same product as a wakala or mudaraba deposit with an "expected profit rate" rather than interest.
See also: UAE Salary Calculator — Take-Home & Cost to Employer, UAE Expat Retirement Calculator, UAE Personal Loan Calculator, Dubai Cost of Living Calculator.
Assumptions
- Rate fixed for the whole term; simple interest when paid at maturity, otherwise compounded at the frequency chosen.
- Monthly top-ups are added at the end of each month and earn from the next.
- No tax on deposit interest in the UAE; home-country tax for non-residents of the UAE is ignored.
- Real value uses the inflation rate you enter, compounded over the term.
Worked example
Simple interest: 100,000 × 4% × 12 ÷ 12 = AED 4,000, maturity value AED 104,000, no tax. With monthly compounding instead the effective yield is 4.07% and the maturity value AED 104,074. At 2.5% inflation the real value is about AED 101,463 — a real return of roughly 1.5%.
Frequently asked questions
Is fixed-deposit interest taxed in the UAE?
No. There is no personal income tax, so interest and Islamic deposit profit are received in full. Expats who remain tax-resident elsewhere (e.g. India, the UK) may have to declare it there.
What rates do UAE banks pay in 2026?
Roughly 3–4.5% a year on 12-month AED deposits, following the Central Bank base rate; promotional and larger deposits pay more, savings accounts much less.
Is a wakala deposit the same as a fixed deposit?
Economically yes — you place funds for a term at an expected profit rate. The bank invests them under Sharia principles and the realised profit can in theory differ slightly.
Can I withdraw before maturity?
Usually yes, but the bank applies a penalty or pays only the savings rate for the period, so the return can fall to near zero.
Monthly payout or reinvest?
Reinvesting earns compound interest (a higher effective yield); monthly payout suits people who need the income.
Are deposits protected?
The UAE has no formal deposit-insurance scheme; the Central Bank has historically stood behind licensed banks. Spreading large sums across banks is prudent.
What is the minimum deposit?
Typically AED 10,000–25,000 for a term deposit; some banks accept AED 5,000 online.
Do non-residents pay tax on UAE deposit interest?
Not in the UAE. Indian residents must declare it in India; UK and US residents likewise under their worldwide-income rules.
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