Document background
The Term Deposit Agreement is a fundamental banking document used in the United Arab Emirates to establish and govern fixed-term deposit arrangements between financial institutions and their customers. This agreement is essential for both conventional and Islamic banking operations in the UAE, requiring compliance with UAE Federal Law No. 14 of 2018 (Central Bank Law) and related banking regulations. The document is used when customers wish to place funds on deposit for a fixed term in exchange for interest or profit (in Islamic banking), typically offering better returns than standard savings accounts. It includes critical information such as deposit amount, term length, interest/profit calculation methods, early withdrawal conditions, and renewal options. The agreement must incorporate consumer protection provisions as required by UAE law and can be customized for both retail and corporate customers while maintaining compliance with UAE Central Bank guidelines.
