Liquidity-starved banks in the UAE are offering a range of special offers and promotions – including a chance to win $1 million (Dh3.6m) – in a bid to attract deposits.
Prizes on offer include Dh1m, apartments, luxury cars, gold bars, travel packages and free insurance.
And some of the million-dirham winners picked up the cash after losing their jobs because of the economic slowdown. "The focus of most banks in the UAE has shifted from lending to deposit mobilisation through special promotions and offers," a senior official from Commercial Bank International (CBI) told Emirates Business.
"While many banks have restricted their personal loans, car loans and credit card services and tightened their credit terms and conditions, they are offering higher and higher interest rates for fixed deposits. For obvious reasons the banks are in dire need of deposits."
CBI recently introduced Mabrook savings scheme that gives depositors who save Dh100 a chance to win a cash prize of Dh10,000 each week. "We also offer free accident insurance, free debit card and competitive interest rate. Even children can participate in the scheme. Fixed-deposit customers get an annual interest rate of 7.5 per cent."
Mashreq spokesman Saad Hakim said the bank doubled the frequency of its million-dirham draws in February and had since created 12 new millionaires, including customers who had lost their jobs. "It is strange that in the past three months of layoffs and economic difficulties 12 new millionaires have been created in the city. One of the winners of our weekly draw had lost his job and was in a job interview in Qatar when he learned he had won a million. Similarly, an expatriate couple won the millionaire prize after losing their jobs. Naturally other banks are offering similar schemes."
Abu Dhabi Commercial Bank is running a scheme called One Million Dollar Dreams 4 that offers a $1m prize and a Mercedes-Benz E230 at draws to be conducted in July and November 2009. Dubai Bank offers a Dh30,000 as prize every 24 hours and Dh1m as prize every 30 days.
Noor Islamic Bank is offering up to seven per cent profit on deposits and a chance to win a 3-Series BMW every month and a Toyota Yaris every week. And RAKBank is offering free life insurance to depositors.
Dubai Bank depositors with Dh1,000 in a Kunooz account has a chance to win Dh20,000 or Dh10,000 per day. Prizes offered for a minimum deposit of Dh5,000 include studio flats and free school fees for children up to the age of 18, while those with a Dh1,000 balance can win five 3-Series BMWs and a week-long vacation for two in Geneva, Prague or Egypt. For every multiple of Dh5,000 deposited in a Kunooz account customers receive an entry into a monthly Dh1m draw.
UNB has introduced the Accelerating Deposit account offering higher interest rates for customers who deposit for the long term.
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