Formular to Enhance your Financial Assets

Well, we all want to make more and more money so that to cover our maximum wishes. You can ask yourself what the possible ways to generate more productive options are. Whether you should save or invest, cut down your expense or expand your workings, the answer is definitely both. How to achieve these options, it depends on your goals. Are you working while having a short term goal or have a plan with a long terms goal? Saving is putting money aside bit by bit so that to use it during the crisis. Most of the time, one has to spend money like a wedding ceremony in a family or a medical issue, so people save for diverse types of goals.

The banking system in UAE is the best option to plan a saving option but which type of a bank – a bank with an Islamic current account or a bank with conventional banking with an interest rate system. These are two parallel systems providing all kinds of plans like investing, saving, management and many others.

Let me cut it short because we have discussed it many times. You are in Dubai and the banking system is available with two clear options. Either you want a bank with an interest-free system or working with an interest rate system, the choice is yours. Which is favorable or unfavorable it depends on your plans like:

1. Risk free banking

We can take the example of an investment plan, it is taking some of our money and making it grow by buying things that might increase in value or we can invest directly in a market where chances are bright to get some profit. Now if you would invest through an Islamic bank account, profit and loss margin will be shared equally according to the sharia law. Both parties will be in the same place. While on the other hand through a conventional bank you would only get profit if it was on the guarantee of a bank because you have invested on the behalf of a bank.

The first one is risky and the second one is also risky but both are usually profitable routes when we consider the region UAE, the best place for taking any initiate to double your assets. One can take options like stocks, property or shares in a fund over time so that to get maximum profit at the end of the term. This is important to safeguard our money from the rising inflation because Dubai is a place where things are much expensive and you have to manage your tasks before time. But Islamic Banks in UAE  are popular due to the satisfactory level of the majority of the clients

2. Fixed or Term deposit

We are talking about savings and the perfect instrument to achieve both saving and investing is a fixed or term deposit. This option is available at all instructions where your fund is highly liquid and yet, still able to earn returns over time but the choice of a bank should be smart. Keep one thing your mind that the usual deposit products are that the high-profit rate is only possible through a short period, such as six months to a year.

You can also take the option of a longer period which able to lock in the highest profit rate but one has to work a lot through this route. For a longer period definitely put you with maximum trouble of monitoring the latest promotion from various banks but at the end of your program, you will get more money in your pocket!

Why we need a foreign currency account?

This is really important because you need to perform many banking tasks with international currency. For example to open a foreign currency account will save you from extra taxes because most of the banks in UAE facilitate such high-net-worth individuals with maximum benefits. You can trade through this account while dealing with international markets as:

• Forex trading
• Currency exchange trading
• Stock market – local as well as international market shares

If you want to earn more, one of the most taxing parts of winning the cash deposit game is to constantly have an eye on the highest rates of return offered by various banks. You should have the idea that most of the promotional rates offered are applicable for up to 12 months of deposits in any bank either a private bank with commercial banking or an Islamic bank without an interest-free system.

You need to get maximum profit within a fixed time period because the rates will revert back to the normal rates, which are lower after the campaign is done. Through your savings account, if you want to get maximum output, you will need to always search for the high rates and transfer your money to and from these accounts. You can use multiple accounts with diverse business plans but smartness is the key factor while handling all accounts.

Foreign currency account can provide you with

• Higher returns
• Lowest interest rate
• Risk-free options
• Ease of using baking services

If you want to work with the international business community, first of all, you must have a foreign currency account because it’s necessary. Second, you need to work with a sharp and smartwatch. If you are not alert on the latest promotional rates offered, chances are you would not get proper benefits. In this situation, you have to leave your money in a fixed deposit account way over the promotional period which is the result in a lesser interest rate counted in the list of profit. In simple words, this means less profit on your money.

You can also read:

• How to achieve financial freedom
• Resources to help you achieve financial freedom

Other benefits

Look, play with soft and simple strategy while dealing with banking in the UAE and managing too many accounts because if you wouldn’t, this can be a pain. You have to work with this system then why not in a smart way so that to get maximum benefits. Last but not least Islamic banking in UAE is the most appropriate way for expatriates in UAE.