National Bonds: Pay Dh20 charge for low account balance

National Bonds will start levying a fee of Dh20 if the balance in your account falls below the minimum set limit of Dh3,000 during the month.

Advising customers on this new rule, the company is sending reminders to them that this rule will be applicable starting April 1, 2016.

If the accountholder fails to fund their accounts with the required minimum amount, a monthly charge of Dh20 will be applicable on accounts.

“To avoid this charge, increase your balance to Dh3,000 or apply for a monthly saving plan,” reads a text message sent by the company.

“I have insufficient funds in my account so I will have to add more by the end of the month. It’s an extra amount that I will have to set aside but indirectly it’s a good thing. I will at least have some spare money,” a National Bonds customer said.

Earlier this month, the sharia-compliant savings and investments company announced that its savings and investment products provided up to 4 per cent annualised returns to customers in 2015, outpacing the returns provided by other competitive financial institutions in the UAE.

“National Bonds focuses on tracking the financial behaviors of our customers through our year-round Financial Heath Check. It is encouraging to note that our customers are increasingly keen to balance their needs and wants despite the prevalent consumerist trend and credit-card culture,” said Mohammed Qasim Al-Ali, CEO of National Bonds.

“Most importantly, savers across all ages and income levels today are convinced about the need to save for retirement. This tops their list of priorities. People understand the importance of budgeting and saving. Greater financial awareness helps them assess economic changes and anticipate challenges to their long-term financial stability. In 2016, we will reward this commitment by introducing a sharia-compliant insurance cover through a comprehensive regular saving plan,” he added.

The company has several options for the individual saver. Their dirham savings scheme, called an affordable plan, offers units of Dh10 with a minimum purchase requirement of Dh100, promoting a savings culture by encouraging people within low incomes to save.

There is also an employee savings programme that allows an employee to automatically save a selected amount from his/her monthly salary or directly from his/her bank account every month, making sure the investor first pays him/herself.

The grand prizes that are on offer have been a major attraction for those investing in such schemes.

Recently, financial advisers at National Bonds released a financial health check to help customers assess their financial status and take corrective action towards achieving a more resilient financial future.

Data from the company indicates that 36 per cent of UAE nationals save for a major purchase, while 34 per cent save to buy a house and 24 per cent save for retirement.

However, only 7 per cent save for their children’s education.

As for other nationalities, 37 per cent save to buy a house and 35 per cent for retirement while 18 per cent save for a major purchase and only 10 per cent save for education.

Licensed by the UAE Central Bank and fully-owned by the Investment Corporation of Dubai, the principal investment arm of the Government of Dubai, National Bonds is audited by the Government of Dubai’s audit department and is supervised by an independent fatwa and sharia supervisory board, in addition to external auditing entities.

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