The Central Bank of the United Arab Emirates revealed a growing demand for 3 and 6-month term deposits during August that resulted in increasing their total balance to AED559.25 bn and AED164.6 bn respectively.

The increased value of these types of term deposits is justified by the fact that they will pay the same returns of one-year deposits, which made them more sought-after as all investors are instead attracted to the lure of high yields in short periods of time.

According to the apex bank's figures, the three-month deposits grew 4.3 percent in August from AED551 bn in July, and the six-month deposits grew 4.4 percent from around AED157 bn in the same month.

The combined balance of three and six-month deposits amounted to AED723.85 bn, accounting for 74.8 percent of the total deposits held by UAE banks.

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