Best Buy: UNB now compounds interest daily

Union National Bank customers can now get interest accrued daily in savings accounts that hold at least Dh10,000.

The Abu Dhabi-based Union National Bank (UNB) has launched a new account that pays interest on a daily basis, giving a welcome boost to account holders' capital.

The lender says the aim of the Everyday Interest Savings Account is to help customers achieve their savings goals.

"The key focus of this product is to encourage customers to save and reward them on a daily basis," says Praveen Bandekar, the bank's vice president and manager of product development.

Mr Bandekar says interest is calculated and credited on a daily basis, while account holders with higher balances will accrue higher interest.

UNB could not provide the interest rate payable at time of press.

"In addition to the benefit of daily compounding, customers can also receive a higher interest rate," he says.

"As customers' saving increase, they start earning even more while they can easily withdraw their money any time. They are allowed [an] unlimited number of credit transactions, which will encourage them to save as per their convenience."

The minimum balance to open the Everyday Interest Savings Account is Dh5,000.

However, to earn interest, customers must have a minimum balance of Dh10,000 in the account.

The account is only available in dirhams, while it also comes with an international Visa debit card. While terms and conditions apply, other benefits of the account include free quarterly statements, internet and telephone banking and unlimited deposits.

"The launch of this latest product is in line with UNB's multi-dimensional approach aimed at targeting all segments of the UAE community via various socio-economic initiatives," the bank said this week in a statement.

UNB, in which the governments of Abu Dhabi and Dubai hold stakes, said in October that its third-quarter profit rose 28 per cent on higher lending income, Bloomberg reported. Net income advanced to Dh459.6 million from Dh358m a year earlier, the lender added.

For more information about the Everyday Interest Savings Account, contact UNB's 24-hour call centre on 600 566 665 or visit www.unb.co.ae.