How to make savings work well for you

Dubai - Start by easily opening an account in UAE

Throughout your life, there will be several instances in which you may find yourself with an unexpected expense, be it a fine, medical bill, car repair, or any unforeseen incident. One of the best ways to be prepared for this is to open a savings account - an inexpensive method to ensure that you can cover these payments, particularly if you have limited financial resources.
A savings account, in many ways, is the bread-and-butter of any financial plan, and is an efficient way to steadily accrue money, and build on your savings for the future. It is a crucial component to ensure that you have funds for any unfortunate mishaps, without requiring any help from friends or family and can meet you're mid to long-term goals, such as a wedding, house rent, car down payments, etc. It is also a more desirable option than relying on credit cards or seeking finance. The more money you have in your savings account and the higher the rate being offered, the more money you'll make each year.
Opening a savings account in the UAE is usually an easy process. If you are a resident, it is as simple as providing your passport or Emirates ID as well as your salary certificate. In the UAE, savings accounts and fixed deposits are proving to be more popular amongst residents to maximise their returns, but the offers for savings accounts have different requirements and stipulations, depending on the financial institution that offers it, which may not always work in your favour. As always, customers looking to avail the best option need to shrewdly do their homework on the various options available in the market.
Looking for competitive rates alone is not always the answer. Sometimes, if a market or bank is offering you a higher rate, they could also have higher minimum balances and fees. For example, some saving accounts in the region offer a high profit rate - however, as a catch, you would then need to keep your money in a fixed deposit or invest in a plan to yield these high returns - which isn't a convenient option for everybody.
Therefore, it's important that you ask some of the following questions before opening an account: Is the interest or profit rate offered on the saving account only for a promotional period? What is the monthly minimum balance that is required? How many transactions (such as deposits and withdrawals) can you make each month? Are there any cards with the account - and will you be able to make withdrawals? It's also important to watch out for monthly fees or other charges. Some saving accounts come with fees attached, which you should be clear about beforehand.
At Noor Bank, we offer a basic day-to-day account with many ways of accessing it. It offers you a chance to grow your money, earn quarterly profits and maintain an average monthly balance of as little as Dh3,000 - available in dirham, US dollar, British pound and euro.
Availability is particularly important when researching your savings account. An unfortunate, yet more common mistake is to open a savings account only to find that you cannot access your money, or make withdrawals when an emergency presents itself. It is important that you read the fine print and know how many times you are allowed to make withdrawals.
Some banks also offer competitive short-term bonus rates - however, these can finish after the first year. These accounts sound promising, in terms of returns, however it does not necessarily last over the long term. Therefore, it's important to know when the promotion ends, so your expectations are in line with what is being offered.
If you are not very hands-on, it is also to your benefit to organise automatic transfers (standing instructions) when having a savings account. This way, regardless of your schedule, you will make regular deposits to your saving account and maintain that discipline. Lastly, with today's advancements in technology in mind, you should also look for a bank that can offer you easy access to online banking transfers and cash deposit machines, with the account.
The writer is the business head of consumer finance at Noor Bank. Views expressed are his own and do not reflect the newspaper's policy.