Term and savings deposits in both local and foreign currency in the UAE banks increased by around AED16 billion in September, amounting to a total of AED768.3 billion against AED752.3 billion in August, according to Central Bank figures.

Banking sectors analysts surveyed by WAM said the attractive interest rates provided by UAE banks have contributed to boosting saving sentiments among investors since the beginning of the year. Investors have found in deposits a safe haven for their businesses in comparison with other volatile investment vehicles, including trading.

The UAE Central Bank raised deposit interest rate to 1.5 percent following the US Federal Reserve's second interest hike in June.

Term and savings deposits amounted to AED751.4 billion by the end of 2016 and continued their rising streak during January 2017, slightly dropping during the following months, before rebounding in September to AED786.3 billion.