The UAE Central Bank's term deposits in 2017 totalled Dh636.2 billion ($173.2 million), accounting for 46.1 per cent of the total deposits which included 415.34 in local currency and an equivalent of Dh220.85 in foreign currency.

Term deposits in the UAE-based banks increased by Dh26.4 billion during 2017, which reflects the growing demand for this category of deposits, comparatively with other types of saving vehicles, reported Emirates news agency Wam, citing figures released by the Central Bank.

The growth is driven by the successive hikes in interest rates, since December 2016 through the same month in 2017.

Financial analysts surveyed by Wam attributed the growth in term deposits to the fact that they are the safest saving haven for clients seeking assured gains in comparison with other investment vehicles.

During the month of January, term deposits at UAE-based banks rose by Dh6 billion, to around Dh616 billion, from Dh610 billion in December 2016, while Q4 witnessed more liquidity to ratchet up term deposits at the CB during that period to around Dh636.2 billion, an all-time high since 2013.

In the meantime, saving deposits hit a total of Dh156.2 billion last year, comprising 11.2 per cent of the total value of deposits.