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These are the most widely used savings accounts as they give you a better profit rate than your current account and your funds can be accessed at any time.
It is good practice to have an accessible savings account linked to your current account so that you can transfer funds into your savings account to earn a better profit rate. You can usually open an accessible savings account with any bank in Saudi. However it is easier to have the savings account and current account at the same bank for ease of transfer between them.
Time deposit accounts allow you to save a lump sum of your money for a fixed term which could be anything from 1 month to 3 years. There is usually a minimum amount that needs to be saved and during the term it is difficult to access the funds. However time deposit accounts offer a higher profit rate than accessible savings accounts because access to your savings are restricted. Bank Albilad offers a time savings account with a minimum deposit of SAR 1,000 and withdrawals of up to 50% of the balance.
There are also a few variations of time deposit accounts. For example SABB have options where you can consider investing into commodities or finance environmentally friendly projects in the Kingdom. However both require a minimum deposit of SAR 25,000.
A monthly savings account is where you transfer a fixed amount every month from your current account into a savings account for an agreed period of time of anything from 6 months to 10 years.
where you transfer a fixed amount every month from your current account into a savings account for an agreed period of time of anything from 6 months to 10 years. The profit rate offered will usually be higher for the longer you save. This is a great option if you want to save towards a specific goal.
Zood from Social Development Bank is a great option to save smaller amounts of between SAR 20 – SAR 200 per month. Banque Saudi Fransi has a monthly savings plan to help you save to own a home which requires a SAR 10,000 deposit and minimum monthly contributions of SAR 1,000 per month.
Automated Savings Accounts automatically save some of your funds in a separate savings account every time you make a transaction. This could either be a percentage of the amount of transaction that is transferred into the savings account or it could round the transaction up to the nearest 1 Riyal and save the difference. Therefore every time you make a payment, funds will go into your savings account. Both Alinma Bank Instant Savings and Riyad Bank’s Wazin Programs offer automated savings accounts.
Most banks offer you the option of saving in a foreign currency such as USD, GBP or AED. There may be time deposit or accessible saving account options.
Non-bank entities offer saving clubs or savings circles options where you can join a savings circle, contribute a regular amount and when it is your turn, the total of all the regular amounts contributed will be paid out to you. E.g. If you contribute SAR 100 every month in a circle of 10 people, when it is your turn, you will be paid SAR 1,000. Whilst savings circles are good at keeping you focused on savings, you are not usually paid a profit rate. Hakbah, Circlys and Money Loop all over digital saving clubs.
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Ask |
Budgeting gives you more control over your spending, helps you to understand your financial position and helps you to stay focused on saving, |
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Bid |
Budgeting gives you more control over your spending, helps you to understand your financial position and helps you to stay focused on saving, |
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