How can we help you?
'' did not bring up any results.
Popular searches
Activate a FAB card
Contact Center
Credit Cards
In-Branch Digital Services
Mobile Banking
Planning and Managing Money
Planning Ahead
Financial Planning
Financial planning should be considered in a medium-term (a few years) and long-term context (10 years or more e.g. retirement saving). Financial planning shows how a financial plan can be used to achieve set objectives while being able to flex to your circumstance. Financing a large item of future expenditure or accumulating a fund for future use takes a long time and so it necessarily requires long-term thinking and planning.
How long-term objectives affect saving and spending decisions now
Mohamed bought his flat last year and is now making monthly mortgage payments of AED3,500. His mortgage is a variable-rate and he knows that if interest rates rise, his repayment will rise so he tries to budget for AED4,000 a month. The mortgage repayments are now an essential expenditure and they mean that he has less money to buy other items.
Features of Effective Financial Planning
Drawing up and monitoring a medium-term or long-term financial plan does not have to be a difficult or a time-consuming task. Once you have set out an objective of achieving an aspiration and have made a plan, you just need to check it from time to time. The following are the five features of effective financial planning:
Personal Financial Portfolio
Your financial portfolio is personal to you and will include your assets like your house and car, savings and bank accounts, your pension savings, investments, loans and other debts. Having planned your budget and set your financial plan you should be in a better position to consider aspects of your personal financial portfolio that can help you manage your money or plan for current, medium and longer-term financial plans.
| Service Transactions | Save | Invest | Insurance | Borrowing |
|---|---|---|---|---|
|
|
Stocks and Shares |
|
|
Islamic financial Products
The term “Islamic Finance” or “Shari’ah Compliant Finance” (and other similar terms) are commonly used to refer to the contemporary financial industry that has set compliance with Islamic commercial law as one of its main criteria in the day-to-day operations.
The Islamic Finance industry is growing at an accelerated pace, exceeding US 2.44 trillion in assets globally, and recording a growth rate of 11.4%. The Islamic Finance industry is primarily manifested in banking, insurance (Takaful) and asset management sectors.
The UAE has a well-established Islamic financial industry, comprising Islamic banks, Islamic banking windows, Islamic finance companies and Islamic insurance (Takaful) companies.
CBUAE | Islamic Finance (centralbank.ae)
| Islamic Accounts |
|
| Islamic Cards |
|
| Islamic Finance |
|
Guided by Shariah principles such as Murabaha, Ijarah, and Mudaraba and supervised by the Internal Shariah Supervision Committee, FAB Islamic banking window offers a wide range of world-class products and services that address customers’ needs through Islamic financing and investment instruments while abiding by Shariah rules and principles. Islamic Personal Banking | FAB - UAE (bankfab.com)
Contact: Shariah Advisory ShariahAdvisory@bankfab.com and Shariah Compliance shariahcompliance@bankfab.com
Bank account
One of the main banking products you are likely to have is a bank account. The main types of bank account are current accounts. The benefits of opening an account:
Current accounts can now be opened quickly and simply like the FAB personal current account, which offers a free debit card, get FAB Rewards, check your balance, send money and earn rewards in a few taps.
Tips for managing your account:
- Ensure you have sufficient money to pay transactions that are due
- Use statements that are provided online, on paper and via ATMs to monitor your transactions
- Statements are usually provided once a month for current accounts
- Ensure you have sufficient funds if you issue a cheque as bounced cheques may impact your credit score
Reasons for Saving
There are important reasons for saving. It helps you deal with unplanned events. These might be positive or negative, but it is a good idea to have savings, so you avoid the stress of worrying. Once you have your Emergency Fund in place, which should be 3-6 months of mandatory and essential expenditure, you should consider regular savings.
Setting target saving goals per month will help, and it is recommended that this at least 10-15% of your monthly income.
Tips on choosing savings accounts
- Distribute your savings among short/ medium/ and long accounts
- Make sure to leave a good amount of money in current accounts to have enough to cover essential spending
- Look for a good interest rate across different banks, compare using the AER interest rate
Do you know about the return on savings - the interest rate?
- The higher the interest rate paid, the more you, as a saver, will earn on your money
- Some banks pay it monthly; others pay at the end of the year. To compare these would be like comparing apples and oranges
- An annual equivalent rate (AER) is the rate if interest was paid once a year, it is set by the provider
- Providers set the AER on a particular product in relation to the UAE Central Banks EIBOR rate and the savings rates offered by other providers in the market
Navigating the different savings accounts that might be right for you can be daunting. Banks like FAB provide easy comparison tables on their website so you can quickly see the features of different savings accounts, important points like the interest rate and any restrictions on withdrawing money. They also link clearly to the terms and conditions that apply. Visit Saving & Investment Opportunities for New Customers for a comparison of all our savings accounts.
Investing
Investments have some key differences to savings but they can provide a much higher return than savings over the same period. While there are many different types of investments, typical investment products include Stocks and Shares, Mutual Funds, Fixed Income Bonds (For example: National Bonds) and Corporate and Government Bonds.
The differences between savings and investments
| Savings products | Investment Products |
|---|---|
|
|
Tips to manage risks
- Hold a diversified stock portfolio for companies with different features (industry type, size, stock type)
- Invest for the long term to avoid short-term fluctuations
- Don’t try to time the market as climbing stocks attract more buyers that drive prices higher, prices can fall just as fast as investors start to sell to cash in on the big gains
- Get advice if you’re not a knowledgeable investor
Insurance
Insurance is a payment ‘just in case’ something bad happens. We pay insurance companies because if something bad does happen, it will cost lots of money to deal with it ourselves. A person buys an ‘insurance policy’ from a company that agrees to take on certain risks in return for a premium. Insurance products are provided by Insurance and Takaful companies.
| Compulsory insurance | Voluntary insurance |
|---|---|
|
|
Insurance offers a wide range of benefits
At FAB we offer a range of insurance products.
Borrowing
There is a wide range of borrowing options for you to choose from designed for different purposes. You should think very carefully about your borrowing needs and choose a form of borrowing that is right for you.
Loans typically fall into two categories
| Unsecured Loans | Secured Loans |
|---|---|
|
|
You should also read the terms of your loan very carefully as you might be charged a fee or penalty for early repayment, going into arrears by not meeting your loan repayments will have a negative consequence for your credit rating and you will pay more in interest and charges if you extend the term (duration) of your loan.
A loan calculator can help you assess if you are eligible for a loan and how much it might cost you to pay back. Use the FAB Loans Calculator
Personal Loan
Indicative Loan Calculator
Just enter your monthly income and expenses for each category and the calculator will do the rest.
My monthly Salary is
I need to borrow
And pay it back over
Annual interest rate
Monthly repayment
AED
0
Total repayable
AED
0
Additional one-time upfront processing fee of 1.05% will apply on the loan amount (minimum AED 525 and maximum AED 2,625). A life insurance fee may apply. For further information on fees and charges, please refer to the service and price guide.
Monthly repayment
AED
0
Total repayable
AED
0
* Please note that this is just an estimate calculator based on given amounts
Additional one-time upfront processing fee of 1.05% will apply on the loan amount (minimum AED 525 and maximum AED 2,625). A life insurance fee may apply. For further information on fees and charges, please refer to the service and price guide.
Indicative Loan Calculator
Just enter your monthly income and expenses for each category and the calculator will do the rest.
I am an employee of Ministry of Defense
My monthly Salary is
I need to borrow
And pay it back over
Annual interest rate
Monthly repayment
AED
0
Total repayable
AED
0
Additional one-time upfront processing fee of 1.05% will apply on the loan amount (minimum AED 525 and maximum AED 2,625). A life insurance fee may apply. For further information on fees and charges, please refer to the service and price guide.
Monthly repayment
AED
0
Total repayable
AED
0
* Please note that this is just an estimate calculator based on given amounts
Additional one-time upfront processing fee of 1.05% will apply on the loan amount (minimum AED 525 and maximum AED 2,625). A life insurance fee may apply. For further information on fees and charges, please refer to the service and price guide.
Calculate Your Debt Burden Ratio
What is your monthly salary?
Total Monthly Repayments for Personal Loan(s)
AED
Total Monthly Repayments for Car Loan(s)
Total Monthly Repayments for Mortgage(s)
Available Limit For Credit Card(s)
Calculate Your Debt Burden Ratio
Your debt burden ratio results
You can also calculate your Debt Burden Ratio. Providers of loans determine your Debt Service Ratio (DSR), which is regulated by the Central Bank of the UAE to avoid over lending to consumers.
The need for financial advice
It is important that as you plan your finances and make financial decisions for the short, medium and long-term that you have financial help and advice. But it is important to be able to distinguish between good, comprehensive advice and information that is biased and driven by the need for an organisation or its representative to sell a product.
Once you have chosen a product, you also need to stay informed during the period you are using the product.
Example
If you have chosen to borrow money on a credit card, you need to know how and when you are expected to make payments and how much you should pay each time. The credit card statement will give you a minimum payment to make each month, but if you pay only this amount, your bill will increase significantly as interest is added on. An informed consumer will know that it is best to pay off as much as possible each month since the interest rate on credit cards is quite high.
Making a bad financial choice can have unfortunate consequences, although with short-term products, such as a current account or instant access savings account, it is easy to switch to a different one. But medium-term and longer-term products – long-term savings accounts and mortgages for instance – are relatively inflexible and you will need to know financial product related facts before committing yourself. You can experience problems with financial purchases if you do not understand the agreement you are making.
While the UAE law provides some protection against bad advice and the selling of unsuitable products, consumers should remember that there is always a risk and seek guidance or advice.
Examples on how changes in circumstance affect product suitability
Two years ago, Mohamed was earning a high salary and he started a regular savings plan into which he agreed to make large monthly payments. He recently lost his job; although he now has a new job, the salary is lower. He can no longer afford the payments into the savings plan but the product does not allow him to make smaller payments. He has to freeze the plan and pay a penalty.
Government help and advice
The UAE Cabinet approved a federal law concerning the insolvency of natural persons in the recent years. The federal law protects Emiratis and residents in debt from legal prosecution and decriminalises their financial obligations, offering them an opportunity to work to remove themselves from debt and support their families. The law concerning the insolvency of national persons supports individuals who are facing existing or anticipated financial difficulties that make them unable to settle their debts. At the same time, it helps individuals reschedule their debts and give them the opportunity to take new concessional loans.
The law protects the debtors from legal prosecution, decriminalize the financial obligations of the insolvent person and give them an opportunity to work, be productive and provide for their families.
Throughout the process, one or more experts will be appointed by the court to settle the financial obligations debtor. The expert will coordinate with the debtor and creditor to come up with a plan to settle the financial liabilities within three years.
The law, which complements existing financial laws, will contribute to increased transparency, in terms of civil debt repayment transactions, and will ultimately strengthen the UAE's position as an ideal hub for investment, where the rights of all parties are guaranteed.
