The FAB iSave Account has been of interest to many people in the UAE due to the 5.25% annual interest rate that is offered- one of the highest around the country. But, as usual, user feedback and terms show some problematic aspects and misconceptions of this opportunity to increase your savings. Below are the frequently asked questions about the FAB iSave Account, and some probable challenges with solutions on how to deal with them.
Understanding the FAB iSave Account
iSave Account is another internet savings product offered by First Abu Dhabi Bank better referred to as FAB because of the flexibility it comes with as well as the competitive interest rates. Key features include:
- Promotional interest rate: 3.75% to 5.25% per annum on new funds during particular periods (May 2023 – November 2024).
- Ease of access: Open an account now using the FAB Mobile app or Online Banking without having to step into a branch.
- No minimum balance: Save as much without any limitations to the number of deposits or withdrawals you can make.
However, the fine print of how the interest rate applies differs and causes confusion among many users.
Possible Problems of FAB iSave Account
1. Misleading Advertisements
It is therefore presented to the customers with a sensational of a 5.25% interest rate on the iSave Account; however, the rate varies with balances and real time balances. Some of the users have noted that on the FAB website, the interest rates as lower for balances up to AED 500,000.
The Reality:
- Lower Monthly Interest: While the interest rate for account holders is 5.25%, account holders receive 2.5 % every month with the rest of the amount at the end of the campaign period.
- Variable Rates: Based on the interest rate table of FAB, balances below AED 500,000 attract a maximum interest rate of 2.465%.
2. Eligibility Restrictions
To qualify for the 5.25% rate, customers must:
- Deposit new funds from external sources (i.e., not transfer within FAB accounts).
- Meet specific balance criteria, with older deposits receiving standard rates.
Some potential users have questioned whether salary transfers or existing accounts for example count.
The Reality:
- Only new funds transferred from outside FAB are eligible for the promotional rate.
- Salary transfers may work if they come from a non-FAB account, but existing funds remain ineligible for the high rates.
3. Campaign Terms and Extensions
This is particular to campaign periods of the promotional interest rate. For example, many users who opened their accounts in 2023 are expecting the end of the campaign in November 2024 to get their full interest.
The Reality:
- The campaign has been extended multiple times, creating uncertainty about final payouts.
- After the campaign ends, balances revert to standard rates unless a new promotion is introduced.
4. User Frustration Over Complicated Terms
Some of those who have used the iSave Account have said that it is one product where they get more than they bargained for by reading the fine print. Most consumers are uncertain about the computation of the interest and how the promotional rates are imposed on their money.
How to Solve These Issues
1. Understand the Interest Structure
Before opening an account, familiarize yourself with the two-tier interest system:
- Monthly Payout: You will earn a base rate (for instance 2.5 %) on your savings on monthly basis.
- Incremental Payout: The rest of interest, up to 5.25%, is given when the campaign is over.
Pro Tip: But if you are saving for the long term, and are willing to wait for the promotional payout, the iSave Account is not a bad option to go with.
2. Maximize Your Returns
To ensure you benefit from the promotional rate:
- Deposit funds from non-FAB accounts directly into your iSave.
- Track promotional deadlines to avoid missing out.
Pro Tip: If FAB continues the campaign, you might have to transfer the money in and out to be eligible for new rates.
3. Clarify Eligibility for Salary Transfers
If you intend to transfer your salary through the iSave Account, make sure to ask FAB if transfers from your employer are considered new money. Otherwise, you could create a new account to get better interest for other amounts of money you may want to save.
4. Do Not Miss Out on Updates About the Campaign
From the experience of FAB, iSave campaigns have been known to be extended with new promotional rates offered. Be aware of these changes for purposes of improving your saving implementation.
Is the FAB iSave Account Worth It?
The FAB iSave Account is a perfect solution for those who are looking for an account for savings with very appealing promotional rates—though, of course, one must take into consideration all the circumstances connected with it. However, if the terms are not suitable for you or you would like a desired interest rate on your savings, you might consider other HYSA, local or international.
Some people have discovered more favorable rates including 5.8% for USD with few strings attached. If you want to know more about how to open an account with FAB, you can read our article here, in which we explain the process from A to Z.
FAB iSave Account is yet another example of how the best-looking offer has to be examined more closely. If you understand how this structure works and take advantage of it, this is a good saving opportunity. Just remember, an ad is an ad, and don’t be afraid to call FAB for an explanation if there’s something that you don’t understand. If you have ever applied for an iSave Account, please type in your experience in the box below your feedback can assist other consumers in managing this commonly utilized savings type.
