Exploring the Appeal of 2-Year Lock-In Bank Deposits for UAE Golden Visas
In light of bank deposit rates currently hovering around 5.5%, an increasing number of investors are considering the 2-year lock-in option for the UAE Golden Visa program. This particular approach, which necessitates a bank deposit of Dh2 million, is gaining significant traction, particularly among those who possess the financial means but prefer not to delve into the real estate market. The allure of this strategy lies in the attractive returns, which range from 3.99 percent to 5 percent, thanks to a series of interest rate hikes introduced by the US Federal Reserve since March 2022.
The Growing Popularity of Bank Deposits
While real estate investments have historically been the primary driver of the UAE’s Golden Visa program, the bank deposit alternative is rapidly gaining ground. The country’s reputation as an enticing destination for retirees and experienced freelance professionals is bolstering the appeal of this visa option.
A Streamlined Path to the Golden Visa
The bank deposit option’s appeal hinges on its simplicity. Investors are presented with a well-defined plan, specifying the deposit duration and the anticipated returns. This clear-cut nature distinguishes it from the more intricate evaluation processes associated with real estate and business investments, which often require approvals from entities like the Dubai Land Department.
James Swallow, the Commercial Director at PRO Partner Group, underscored the fixed nature of deposit and interest rates, making it a straightforward avenue to obtaining the UAE Golden Visa. In contrast, real estate and business investments tend to involve a more convoluted set of procedures.
Understanding the Dh2 Million Deposit Requirement
To qualify for the UAE Golden Visa through the bank deposit route, individuals must maintain the Dh2 million deposit in their bank account for a minimum stipulated period of two years, after which it becomes eligible for withdrawal. It’s imperative for individuals to meticulously review the terms outlined in their bank’s fixed deposit letter, as some banks may have fixed period terms that surpass the standard two-year requirement for the Golden Visa.
This is a crucial consideration for anyone contemplating this path to long-term residency. While the visa’s prerequisite is a two-year lock-in period, there have been instances where the fixed deposit term has expired, and the bank’s stance remains uncertain.
Banking sources have also pointed out that fixed deposit terms may vary from one institution to another, underscoring the importance of investors exploring diverse options to find the one that best aligns with their specific preferences.