Frequently Asked Questions
About National Bonds
Who Owns National Bonds?
The company is 100% owned by Government of Dubai, ICD (Investment Corporation of Dubai).
What is National Bonds Corporation Sole Proprietorship PSC?
National Bonds Corporation (“NBC”) is a savings and investment company in the UAE, established in March 2006. The company provides UAE nationals, UAE residents,non-residents as well as corporations with an opportunity to build and fortify their savings and investments. It is structured as a private joint stock company with a single shareholder.
Working hours for branches and call center?
Our branches and call center working hours are available at the following link https://www.nationalbonds.ae/contact-us
Branches and head office locations & direct numbers
Our branches locations & direct numbers are available at the following link https://www.nationalbonds.ae/contact-us
Who are board members?
Please refer to the following link https://www.nationalbonds.ae/boarddirectors
How much is National Bonds Capital?
National Bonds was established in March 2006 with a paid-up capital of AED 150 million.
Claiming Prizes
What is the deadline for winners to claim their prizes after the draw date?
Winners must claim their prizes within 60 days from the draw date. Otherwise, they will be unable to collect the prizes.
My Million
What is the National Bonds My Million plan?
My Million is a savings plan by National Bonds that provides the opportunity to save monthly and achieve your financial objective. You can select your financial goal ranging from AED 1 million to AED 5 million and the duration of the plan as per your preference.
What happens to my profit?
Your expected profit is calculated every month based on calendar days and reinvested monthly into the principle to grow your compounded returns.
Am I eligible for the National Bonds AED 36 M Rewards Program?
Yes, you can earn draw chances yearly, based on your principal amount and the number of years you have saved.
Can I enroll my kids into the plan?
Yes. Minors will be enrolled under the Junior Millionaire Plan, an offering dedicated for those under 18.
Can I jump start my plan so I can become a millionaire sooner?
Absolutely. You can place a lump sum amount at the start of the plan tenure to help you achieve your objective faster.
Do I need to be a salaried individual to contribute?
My Million is available to all National Bonds customers. You can select the duration of your monthly savings as per your preference and place an optional lump sum investment to jump-start your plan.
Can I select the tenor of my plan as per my choice?
Yes, you have an option to select between 3 to 20 years.
What is the anticipated profit rate?
Anticipated profit rate is 3.50% p.a. and is distributed and reinvested monthly into your plan.
When will I receive my profit?
Profit is distributed monthly and reinvested back into your plan. You will receive it at the end of the plan tenure.
Is my anticipated profit rate affected if I select a shorter duration?
No, you will receive a 3.50% p.a. anticipated profit rate regardless of your duration (3 to 20 years), which is calculated based on calendar days.
Can I redeem from my plan?
Yes, you can redeem your plan at any time after the 90 days lock-in period.
Are there any fees?
The subscription fee is waived if you continue with the plan for more than 3 years. However, if you choose to redeem before 3 years, the applicable subscription fee waiver will be removed and fees will be applied on the redeemed amount, as follows:
Year of early redemption & subscription fee:
1st Year: 2.00% p.a.
2nd & 3rd Year: 1.50% p.a.
4th Year and above: Waived
Are my savings protected?
Always. All your savings are capital protected as per the National Bonds capital protection Fatwa
How To Apply
How can I apply for National Bonds?
It's really very simple. Visit any of our nearly 556 outlets, leading exchange houses and banks to become part of the National Bonds family. You can purchase bonds online at www.nationalbonds.ae or via our number 600 522 279 by calling our direct sales team or visiting National Bonds office.
Who can buy National Bonds?
UAE residents as well as non-residents are eligible to purchase National Bonds. The minimum age requirement to purchase National Bonds is 21 years, unless purchased by a father/legal guardian on behalf of a minor.
What identification do I need to apply for National Bonds?
How many National Bonds can I buy?
You can purchase as many saving certificates as you wish. There is no maximum limit on how much you can purchase. However, the minimum required purchase of National Bonds is AED 100 (10 units of AED 10).
When do I receive my National Bonds Saving certificates?
For cash and credit card purchases made at National Bonds exchange houses, banks and Emirates Post offices (cash only), the saving certificates are issued immediately. For cheque purchases, the issuance of saving certificates will be after cheque clearance which takes 5 to 7 working days.
How do I access my National Bonds account online?
You can log in to your account at www.nationalbonds.ae by using your Customer Account Number (CAN) and Personal Identification Number (PIN). If you don't have a CAN and PIN, please contact 600 522 279 to activate your online account.
Are there any subscription fees applicable for purchasing bonds?
Saving Bonds are subject to a deferred-payment subscription fee at the Company’s absolute discretion.
Is there any Minimum balance requirement and fee?
National Bonds is the one of the only savings accounts in the region with no minimum balance fees. That means you can save however much you wish, whenever you can. However, we recommend to save a minimum of AED 1,000 or become a regular saver to enjoy the benefits of our AED 35 Million Rewards Program.
Profit
What is the profit rate announced by National Bonds for 2024?
The profit rate varies from customer to customer based on:
In addition to the profit, customers also won draw prizes and received loyalty bonus based on amount invested and frequency of savings.
The chart below gives an example of possible earnings achieved by customer segment during 2024 across our savings as well as investment offerings.
How do earnings from investing in National Bonds compare to profit rates provided by Banks on Saving Accounts and Fixed Deposits during 2020?
On an average the Islamic banks operating in UAE provided profit rate of 0.23% per annum on Saving Accounts irrespective of the invested amount. Whereas on average 0.82% on 1 year Mudaraba Term deposits and average 1.65% on Wakala deposits.
Whereas during 2021 National Bonds offered profit of up to 3.33% per anum for Term based investments. Also for Saving bonds we distributed up to an average ROI of 3.27% on the investment of AED 1 million and above, and 2.70% return on the investment for the Saving of 350K to 1 million which is noticeably higher than the market offering.
How is Profit distributed for the Year?
I purchased National Bonds in December 2023 and again in April 2024. What will be my eligibility for Profit distribution?
Distributed profit per bond varies based on bond’s status and holding period. Please check your account statement for more details or contact us on 600 522279.
I purchased bonds in January 2024 and redeemed in October 2024. I do not hold any bonds on December 31, 2024. Are my Bonds held until October 2024 eligible for Profit Distribution?
Yes, all bonds held during 2024 for any duration are eligible for profit distribution. Please check your profit details on the mobile app or contact us on 600 522279.
What is the "Reserved profit" and when does it reflect in my account balance?
All active bonds as of December 31, 2024 that are held for less than 365 days are entitled to 100% profit weightage regardless of holding period. The distributed profit is then split into two parts; the first is called "Gained Profit" and is paid to customer, while the second part is called "Reserve Profit" and will be paid on the respective maturity date. If such bonds are redeemed before the maturity dates, the “Reserved Profit” will not be paid. Please check your account statement for more details or contact us on 600 522279.
How can I know the amount of Profit earned on my Savings with National Bonds?
You can refer to your online account statement on the website or our mobile app or simply call 600 522279 to know the full details.
What is Residue Profit?
When the amount of earned profits is less than AED 10 or the amount is not in multiples of AED10, the amount or the remaining amount is called Residue Profit.
How do I know my current Residue Profit amount?
Profits earned on Savings Bonds are distributed in the shape of issuing additional Savings Bonds. Additional Savings Bonds are only issued if the amount of profits earned is AED 100 or more, and are only issued in multiples of AED 10. When the amount of earned profits is less than AED 100 or the amount is not in multiples of AED10, the amount or the remaining amount is called Residue Profit.
How can I convert my Residue Profit to additional Savings Bonds?
By topping up your Residue Profit amount to reach AED100 in one of the select Al Ansari Exchange or at our Dubai or Abu Dhabi Branches.
Can I withdraw my Profit Residue amount?
Yes, you have the option to withdraw the Profit Residue amount. Charges of AED 15 will be deducted from the Residue Profit amount. Click here to view the outlet closest to you.
What happens if I don’t top up or withdraw my Profit Residue?
The Residue Profit will be available to the Bondholder during each calendar year. During which the Bondholder can top up the amount to reach AED 100 and convert it into Saving Bonds or withdraw the amount. If no action is taken during the annual grace period, the Bondholder it will be understood that he/she has waived his/her right to the Residue Profit and subsequently granted the Company the authority to transfer the amount to the benefit of the joint investment pool at the end of each calendar year.
Where and how can I receive my Profit Certificates?
An electronic certificate will be emailed to your registered email address. You can also log in to your online account at www.nationalbonds.ae and print your certificate instantly.
Can I have my profit sent to my bank account?
What is Return on Investments (ROI)?
ROI is composed of the yearly base profit + prizes won + Bonus.
Sharia Compliance
Is National Bonds Shari'a compliant?
Who are the members of your Shari’a board?
Please refer to the following link https://www.nationalbonds.ae/shariascompliance
NBC is now promoted and performs based on lottery, this is against Shari’a.
Our Rewards Program is funded by National Bonds own share of profit and not from customer’s profit share. Our Rewards Program structure is approved by our Shari’a board. The objective of the program is to promote and reward good savings and investments’ behaviors and encourage people to take charge of their financial future. Furthermore, all National Bonds savings & investment offerings and campaigns are Shari’a compliant.
How can I calculate my Zakat?
For 2020: Zakat for the Hijri (lunar) year is AED 0.1938637017 and for the Gregorian (solar) year is AED 0.1998347037 for each Bond.
E-Bonds
What are E-bonds?
E-bonds is an additional National Bonds service that allows you to receive your saving certificates online, giving you absolute convenience and accuracy, at no cost.
Do I need to purchase saving certificates online for E-bonds?
No, you can receive the E-bonds whether you purchase your saving certificates from Emirates Post offices, exchange houses, banks or online.
What are the requirements to receive E-bonds?
To receive your saving certificates online, you need to have a regular e-mail account to automatically receive your E-bonds. E-bonds can be printed at your convenience and are considered as valid and as good as the original documents via Emirates Post offices, exchange houses, banks and through our website.
What is employee saving scheme?
What is Employee Saving Scheme?
A Shari'a compliant scheme that is designed to encourage you to have a disciplined approach towards savings to ensure a secured future. At National Bonds we believe that saving facilitates financial independence and peace of mind. In a bid to encourage responsible financial behavior, the scheme allows you to automatically deduct a preset amount from your salary every month by the payroll department and sent directly to National Bonds for issuance to Savings Certificates.
Global Savings Club (GSC)
What is the Global Savings Club?
Our Global Savings Club purpose is perfectly in line with the UAE leadership’s vision, which is to encourage a culture of savings and prosperity for all. Employees can enjoy a monthly savings account which provides them with the unique opportunity to fortify their safety net and enrich their future. It is a goal-based plan to help employees to achieve their financial goals by setting aside a specific amount every month.
What are the benefits of joining the Global Savings Club?
By joining this unique program, you not only develop a regular savings habit, you also get full entry into in our Rewards Program and entry into an exclusive draw for Regular Savers in the reward categories of AED 5,000, AED 500 and AED 50.
For more information about the Rewards Program, click here https://www.nationalbonds.ae/rewards-program
How to join the Global Savings Club?
Can I cancel my plan before maturity?
Yes, you can.
How will I receive my profit?
At the maturity of your plan (your chosen bundle) or upon cancellation of the entire plan.
If I cancel before plan completion, will I still receive profit?
Yes, profit will be recalculated based on the number of completed months.
If I win something in the draw, where will the prizes be added?
It will be added automatically into your savings account.
Can I cash in my prizes immediately?
Cash prizes will be issued in the form of Saving Bonds in your account, where you can redeem upon completion the 30 days’ lock-in period.
Can I postpone the payment or freeze it?
Yes, you can freeze the plan twice (each time up to 3 months).
Can I do partial redemption?
Yes. However, the plan will be downgraded to the basic regular saving plan, and you will be no longer be a part of the GSC.
What will happen to my bonds when I resign?
Your plan will remain the same and you can continue your monthly contribution unless you decide otherwise.
If I leave the country what will happen to my bonds?
Can I sign up for more than one bundle?
Yes, you can sign up for as many as you want.
Can I subscribe my family members?
One of the extra benefits we offer is that you can enroll your immediate family members.
Can I downgrade or upgrade my active bundle?
Can I sign up for other National Bonds products in the same Global Saving Club account?
Yes, you can. Plus, it will give you more chances in our draws.
What are Gift Vouchers?
It's a financial instrument as good as a bond. Now you can buy your beloved ones a gift that can secure their future, a gift that will reward them with annual profits, prizes on weekly and monthly basis and enjoy other benefits. National Bonds offers Gift Vouchers with different denominations of 100, 250, 500, 1000, 5000, 10,000, 25,000 Dirhams.
What is the Gift Vouchers Process?
Customers can visit National Bonds offices to buy Gift Vouchers. Bearer/Beneficiary submits completed application form to National Bonds outlets to exchange the Gift Voucher for bonds of the same value indicated on the Voucher. Beneficiary becomes automatically eligible for all the benefits offered by National Bonds.
Why do National Bonds Gift Vouchers make the ideal choice for rewards?
They have high liquidity, i.e. they are cash equivalent. Their cash value will never depreciate at the time of redemption (as against other usual prizes, e.g. electronics, cars, etc.) They help nurture a savings culture and inspire beneficiaries to prepare for their future. They provide the same benefits enjoyed by bondholders in terms of rewards and prize eligibility. * Terms and Conditions apply.
Redemption
How do I redeem my National Bonds saving certificates?
For redemptions of up to AED 25,000 (based on your account holding), you can apply for instant cash redemption online or by calling 600 522279. Then you can collect the funds by visiting select branches of Al Ansari Exchange House.
Learn more about Instant Redemption.
Alternatively, you can call 600522279 to redeem through cheque (for UAE residents only.) Non UAE residents can submit the redemption form via calling Tel: + 971 4 3848000 and receive the funds via bank transfer.
Is there a minimum holding period before I can redeem my National Bonds saving certificates?
For cash/cheque purchases, saving certificates must be held for a minimum period of 30 days from the date of issuance before they can be partially or fully redeemed. For credit card purchases, there is a lock-in period of 90 days. These restrictions, however, do not apply to saving certificates issued as prizes or as profit distribution.
Can I redeem part of my savings?
We offer you partial or full redemption options for your convenience. However, a redemption request must be at least AED 100 (10 units) or above. For any other questions or inquiries please call us on 600 522 279
Are there any redemption fees applicable at the time of redemption?
A redemption request can be made by calling the National Bonds’ call center or logging in to your account on the website/mobile app which will be followed by proper verification and authentication. For instant redemption request, available at select Al Ansari Exchange branches, distributor charges will be deducted from the amount.
In case of cheque redemption, courier charges will be applicable in case this delivery option is selected.
What happens to my funds in case I don’t collect my redemption cheque or cash?
Where can I redeem from?
You can collect your redemption cheque from any or our branches (as per your choice) or receive it through courier or get it through an instant redemption where you can collect the cheque the exchange houses selected branches.
Can I redeem through the APP or the website?
Yes, you can redeem through the APP or website.
Is there a limit on cash redemption?
Daily redemption limit differs as per the customer’s segment (Total live holding-TLH):
Can I request an international redemption?
Yes, non-resident customers can submit the redemption form by calling + 97143848000 and receive the funds via bank transfer.
What are the required documents for redemption internationally?
Are there any fees on redemption?
Please check https://www.nationalbonds.ae/services-details?item=9b6e5c9b-ca2f-6f76-bc2c-ff1e005d5b89
Can someone else collect my cheque on my behalf of me?
Yes, below are the required documents:
MyPlan
What is myPlan?
"myPlan" is a highly customized savings plan offered by National Bonds to all customers through a regular saving mandate either through direct debit instructions, payroll deduction or standing instructions to the bank where customers can allocate/save a predetermined amount into their National Bonds account. In "myPlan", customers sign up a mandate for saving predefined amounts based on their choice. "myPlan" helps customer to accumulate wealth while offering full entry into our AED 35.5 Rewards program along with dedicated prizes for myPlan savers. a number of additional chances to participate and win in the NBC rewards program.
I have an existing Monthly Saver Plan, what will happen to my commitment?
Your existing plan will continue in your National Bonds account. You will be entitled to entry in all the draws and entry to 5 draws exclusive for myPlan savers every month for 5 iPhone 15 pro for 5 winners.
Are there cancellation charges if I cancel myPlan before the end of committed payment plan?
There are no cancellation fees; however the 0.5% subscription ( minimum of AED 15) fee of the total planned payment will apply in case of premature withdrawal from the confirmed mandate.
Are there cancellation charges if I cancel myPlan after the end of committed payment plan?
There are neither cancellation fees nor subscription fees.
If I redeem bonds from myPlan before the end of my total planned payments, do I still have to pay the subscription fee?
Yes, the subscription fee of 0.5% (min of AED 15) of the total plan commitment amount will be deducted on your redemption amount whether you cancel or continue your plan.
If I cancel myPlan will my old bonds still have the same chances?
No, the bonds will be converted to normal savings bonds and your chances on the draws will be as per those not committed to myPlan. And if you cancelled the plan, you will no longer participate in the dedicated iPhone15 Pro draws for myPlan regular savers.
Can I amend myPlan amount and payment plan?
The customer can amend an existing recurring payments mandate through our mobile app. by setting up a new mandate. myPlan Terms and Conditions will be applicable.
What happens upon completion of the total planned payments?
Your plan will continue as before and bonds will be issued into your account as per the automatic transfer instruction on monthly basis until further notification from your end.
How do I get started and sign up for myPlan?
Decide on your payment amount and total planned payments. Complete myPlan Form along with Direct Debit Form on our mobile app or website. Alternatively, submit the form by calling 600 522279 or your Relationship Manager to arrange for collection.
What are my chances of winnings under these Plans?
Rewards Program
What is the National Bonds Reward Program?
National Bonds Rewards Program offers individual customers a wide range of exclusive and exciting prizes worth AED 36 million, all year round. The program aims to reward customers and encourage them to increase their savings with annual prizes that range from AED 8 million for 8 winners, 16 high-end cars, 365 iPhones, and other cash prizes worth AED 22.2 million. There are exclusive prizes for both Emiratis and Expats, and dedicated prizes for ladies, minors, and regular and digital savers.
When is the New Rewards Program effective from?
National Bonds' New Reward Program will be effective on 5th July 2020.
How many rewards will be given away as part of the New Rewards Program from National Bonds?
Customers will have an opportunity to win from a pool of 423,408 prizes totaling AED 36 Million a year.
How many chances do I get into the Rewards Program?
Your chances in the rewards program are based on your savings bond balance. The standard chance per bond is 1. And then based on your Prestige status, you can increase your winning chances as per below:
When do the draws take place ?
The Million-dirham draw takes place quarterly, on the first Monday of January, April, July & October. The UAE National exclusive luxury car draw takes place every 3 months, on the first Sunday of February, May, August & November. The monthly draws will take place on the 1st Monday of every month.
How do I know if I have won a reward?
Following each draw, all reward winners are notified via an SMS. Winners of AED 1 million and luxury cars will be called by a representative of National Bonds to facilitate the reward handover process. We will also publish the winner details on our Social Media - Facebook and Twitter. If a message is not received due to telecom network issues, customers can check the winners list on our corporate website www.nationalbonds.ae or call us on 600522279.
How do I receive my winning certificate?
Certificates for AED 1 million, AED 5,000, AED 500 and AED 50 will be issued to your winning account and an email will be sent to the registered email address listed for your account.
How can I collect my non-cash rewards?
Where will the draws be held?
National Bonds reward draws are conducted at its Corporate Office using a state-of-the-art software tool to randomly pick the winners of all rewards. The whole process is supervised by the Dubai Economic Department (DED) and audited by an independent international auditing firm to ensure fair and transparent practices.
What is Tejouri?
Tejouri is part of our new rewards program and is an exclusive Emirati program that consists of 8 dedicated prizes every year. The prizes are 4 luxury cars and AED 4 Million every 3 months along with access to 2024 rewards program worth AED 36 Million.
How can I be eligible for prizes?
Minimum savings of AED 1,000 or signing up for any regular savings plan will make you eligible.
How do the draws work, by whom is it monitored and what is the proof it is running genuinely?
Regular monthly draws are executed under the supervision of DED representatives.
Can I choose to get cash instead of a physical prize?
This option is available only if the physical prize is not available with the dealer within 2 weeks of customer’s winning date, or if the prize is won by a non-resident of UAE.
How can I collect my prizes?
If you win a cash prize with National Bonds, then the prize will be issued directly to your account. However, if it’s a physical reward than the prize may be given in one of our branches.
Can I choose to keep my name anonymous if I win?
Yes, based on an advance request from the customer. However, winner’s first name and initial of their family name will published.
How many chances do I get in draws?
It depends on your bonds type (Saving Bonds, Term Sukuk or Regular Savings Plan) and the customer’s segment (Retail, Bronze, Silver or Gold).
How many cars/millions/other prizes are given in each draw?
What are the prizes for UAE Nationals/Expats/Minors/Ladies?
Please check https://www.nationalbonds.ae/rewards-program
How many iPhone16 are your giving away and how often?
We will be giving 7 iPhone16 per week, a total of 365 iPhones over 12 months. The draws take place every Monday of the month and there are 3 ways for your to participate in the weekly draw:
What happens when I redeem my bonds?
In case you redeem your savings bonds, then you lose the free advance entries that are awarded to you each month. You also reduce your overall winning entries as your savings reduce.
How do I get rewarded for my positive savings habit?
Every month, we reward you with free advance winning entries, up to 50% of your existing draw entries, for the next month’s draws. All you need to do in maintain your savings and keep benefitting month on month.
We also give you additional chances, when you increase your average savings balance every month, giving you an advantage of more winning chances for being an active saver.
How can I increase my winning chances?
Age of Sukuk (in Years)
Extra chances %
<1 yr.
5%
<2 yrs.
10%
<3 yrs.
20%
<4 yrs.
30%
<5 yrs.
40%
>=5 years
50%
Get up to 2 extra chances for the next draw per bond on new savings every month (applicable only when there is an increase in your savings portfolio).
Customer Segment
No. of extra chances
Retail, Bronze and Silver
1 extra chance per bond
Gold
2 extra chances per bond
How do I know which prizes I am eligible for?
Sukuk Express
What is a One-Time Password (OTP)?
A One-Time Password (OTP) is a randomly generated 8-digit number which NBC will SMS to your mobile phone when you initiate a purchase transaction at the MBME Kiosk.
How does the One-Time Password (OTP) work?
When you initiate any purchase transaction at the MBME Kiosk, you will be required to enter a One-Time Password (OTP) on the MBME Kiosk screen as a second level of authentication to confirm that the transaction is authorised by you. Once successful completed, you will be able to proceed with your purchase transaction request.
Why is this One-Time Password (OTP) process introduced?
OTP is an additional security measure implemented to safeguard your account from unauthorized activity
How do I generate the One-Time Password (OTP)?
It is a simple process. Just initiate the transaction and follow the simple instructions on the screen. A One-Time Password (OTP) is system generated randomly, instantly and sent only to you on your mobile phone.
Within how much time should I receive my One-Time Password (OTP)?
You should receive a notification instantly from the time you have put a transaction request. If you have not received the OTP reference, kindly request for another one. Should this problem persist, Kindly contact our Contact Centre on 600-522279 who will gladly assist you.
What is the validity of each One-Time Password (OTP)?
The One-Time Password (OTP) will be valid for 5 minutes from the time of generation, after which it expires.
What happens if the One-Time Password (OTP) has expired?
No need to worry, just reinitiate the transaction and generate a new One-Time Password (OTP) to complete it. As the name suggests, each OTP is for single use only. It has to be generated separately for each transaction. If multiple transactions are being carried out, a OTP is generated for each of those transactions.
What should I do if my mobile number is not updated?
It is important to maintain up to date contact details with NBC as we will be providing with important updates on our account to your mobile number. In case, your mobile number registered in our system has been changed, you should immediately contact NBC to get the details updated
What should I do if I encounter any problem during my purchase transaction through the MBME Kiosk?
Kindly contact our Contact Centre on 600-522279 who will gladly assist you.
FATCA
FATCA Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) was signed into U.S. law in March 2010 with an objective to prevent U.S. taxpayers from using financial institutions outside of the U.S. to evade taxes. The relevant regulatory authorities are implementing FATCA in the UAE, in agreement with the U.S. government. The aim is to identify US Reportable customer accounts according to the definition as per the IGA (Inter-governmental Agreement). As a Regulated Financial Institution, National Bonds is fully committed to comply with all the directives and guidelines issued by relevant regulatory authorities to FATCA. Please note that National Bonds shall not be offering any tax advice in relation to FATCA. Please visit US IRS Website or consult your tax advisor any tax advice.
What is FATCA?
FATCA stands for Foreign Account Tax Compliance Act. It is introduced by USA to counter tax evasion by US Persons from using foreign banks and financial institutions to avoid US taxation on their income and investments.
What is the impact of FATCA and when will it become effective?
On an annual basis, National Bonds will be reporting information on the customer accounts held by US Persons to relevant regulatory authorities. UAE is in the process of signing Inter Governmental Agreement with US Government. As per the guidelines issued by UAE Central Bank, FATCA is currently due to become effective from July 1, 2014.
Is National Bonds implementing FATCA requirements?
Yes. National Bonds is committed to be fully compliant with the guidelines issued by the relevant regulatory authorities in relation to FATCA.
Is National Bonds the only Financial Institution implementing FATCA in UAE?
We are not the only institution implementing FATCA in UAE. As UAE Government is signing an Inter Governmental Agreement with US Government, all banks and financial institutions in UAE will be implementing FATCA.
How will you determine if my account with National Bonds is impacted by FATCA?
If your identification details indicate that reporting may be required, we will request you to provide additional details to determine your US tax status. We will then review the available information against the applicable guidelines and requirements to determine whether or not your accounts are reportable for FATCA purposes.
How will I know if I am impacted by FATCA?
National Bonds will contact you in this regard for additional information. The Inter Governmental Agreement between UAE and US Government lays down the following criteria to determine US Reportable Status: a. US citizen or US resident b. US place of birth c. US mailing or residence address or PO Box d. US telephone number e. Current Power of Attorney or signatory authority granted to a person with a US address You may visit US IRS Website for more details on FATCA requirements.
I purchased USD Bonds from National Bonds. Does this mean that I am impacted by FATCA?
No, the nature of products/services availed does not have any impact on the "reportable status" of the customer.
I am not a Citizen of USA. Would FATCA still apply to me?
FATCA may apply if you fulfill any one of the five criteria listed below. If your account fulfills any one of the below criteria, we may request further information / documentation to determine your "reportable status" under FATCA: a. US citizen or US resident b. US place of birth c. US mailing or residence address or PO Box d. US telephone number e. Current Power of Attorney or signatory authority granted to a person with a US address
What are implications for me if I am considered Reportable Person as per FATCA?
If you are a US person as per FATCA, National Bonds is obliged to report information about your account as per relevant regulatory authorities. We will initiate correspondence with our affected customers in due course. However, please note that National Bonds will not offer any additional tax advice relating to FATCA, and we recommend you contact your professional tax adviser regarding your personal tax situation.
What information will National Bonds report to the relevant regulatory authorities regarding FATCA?
National Bonds will be following the guidelines issued by the relevant regulatory authorities in this regard. The information will typically include your personal details as well as information about your savings / investments with National Bonds.
I am not a US Person. Why is National Bonds contacting me for additional information?
For most of our customers, FATCA will have no or minimal impact. However, in order to confirm that you are non-US person, National Bonds may contact you for few additional details.
What information should I provide to National Bonds?
National Bonds will communicate the relevant details to the affected customer directly through your Relationship Managers.
Why is the information requested by National Bonds different from my Bank?
The way in which banks and financial institutions collect information from their customers under FATCA may vary and depends upon the information available with them. It is therefore possible that the information requested by National Bonds is different from the information you provided to other Banks and financial institutions.
Where can I obtain more details about FATCA?
You can visit www.irs.gov/FATCA for more details about FATCA.
Golden Pension Plan
Who is the owner of the product?
Company is the owner of the product.
Who can view product holdings?
Company & Employee can view the holdings.
Can a company opt for the product?
Yes.
Can Company redeem deposits under product?
Where will the profit bonds be issued?
Into the Employee Account.
Where will the prize bonds be issued?
Who opens the account with NBC?
Company will open account first after which all company staff will open individual accounts.
As a staff member, can I contribute to the product?
No – not under the product, however you can buy other products from NBC.
As a staff member can I redeem my deposit?
No, redemption is allowed by company only.
As an individual, can I apply for this product?
No, only your company can apply on your behalf.
CRS
What is CRS?
The Common Reporting Standard (CRS) is a new information-gathering and reporting requirement for financial institutions in the UAE, to help fight against tax evasion and protect the integrity of tax systems.
UAE does not levy tax on individuals. Why are we required to submit this information?
The Common Reporting Standard (CRS) is an International Standard, developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions/countries to obtain information from their financial institutionsand automatically exchange that information with other jurisdictions/countries on an annual basis. UAE has committed itself to exchange information in this regard and help global fight against tax evasion. Consequently, you are required to provide information to fulfill the CRS requirements.
Is National Bonds implementing CRS requirements?
Yes. As a regulated financial institution, National Bonds is committed to be fully compliant with all requirements and guidelines issued in relation to CRS.
Is National Bonds the only Financial Institution implementing CRS in UAE?
We are not the only institution implementing CRS in UAE. All financial institutions in the UAE are mandatorily required to be compliant with the requirements of CRS.
Who is considered as a Reportable Customer?
The CRS intends to establish the tax residency of customers. Under the CRS, all financial institutions are required to identify customers who appear to be tax resident outside UAE and USA (as the same is governed through FATCA), and report certain information to our local regulator. This information, as per the requirements of the local regulator, may then share with the tax authority where you are considered as tax resident.
What information is required to determine my Reportable Status?
We will collect your information along with a Self-Certification at the time of opening your account with National Bonds. As per CRS requirements, we intend to collect the following information: Name Residence Address Mailing Address Place of Birth – City and Country Date of Birth Country/Countries of Tax Residence Taxpayer identification number(s) - TIN If TIN is unavailable, reason for not possessing TIN.
How often I need to provide this information for CRS?
Once we have a valid self-certification on file, we will contact you only in case of any updates to your Account Information or in cases where we believe there is a requirement for additional information.
What additional information should I provide to National Bonds for CRS requirements?
Customers are required to provide us with Self-Certification on the Tax Residency Status. Additionally and wherever required, National Bonds will request for a copy of your Passport for additional information.
What information will National Bonds report to relevant regulatory authorities regarding CRS?
National Bonds will be implementing the guidelines issued by relevant regulatory authorities. For all Reportable Customers, National Bonds will share the information about your Savings/Investments Balance, profits and prizes credited to your account with National Bonds.
I believe I am not reportable for CRS. Why is National Bonds asking me for supporting documents?
As a regulated financial institution, we are required to verify the Self-Certification provided by our customers. In cases where deemed necessary, National Bonds might ask you for a copy of your passport to verify your Self-certification.
I already provided you with a FATCA Self-Certification. Should I still provide you with additional details on CRS?
Even if you have already provided Self-Certification under Foreign Account Tax Compliance Act (FATCA), you may still need to provide additional information for the CRS as these are different regulations and hence different requirements. FATCA is restricted to verify customer’s US Reportable Status. However, in case of CRS, financial institutions are mandated to identify the tax residency of all our customers and in most cases report information on customers who are tax resident outside of the country where they hold their accounts.
I am an Expat living in UAE for the last few years, how will I know if I am a tax resident of another Country?
Your tax residency may be determined based on your place of birth and the place of your residence and business operations. Please contact your professional tax advisor or visit OECD website or more information on how to determine your tax residency, as National Bonds cannot provide you with tax advice.
I am a UAE National living in UAE, why are my details disclosed for CRS?
Under CRS requirements, we are legally required to establish the tax residency status of all our customers, even if you are a UAE National. However, since you are residing only in UAE, typically your details will not be considered as reportable to the foreign tax authorities for CRS purposes.
Why is National Bonds reporting my Information to foreign countries?
Under the requirements of CRS, National Bonds will only share the information with relevant regulatory authorities and not with any foreign country or foreign tax authority.
If I am considered as CRS Reportable, would National Bonds deduct tax from my account?
NO. Under CRS requirements, National Bonds or any other Financial Institution is authorized to deduct any taxes from Customers.
Which countries are participating in the CRS?
Please refer to the OECD CRS portal for list of countries participating in the CRS and the dates that they will start exchanging information.
Where can I find further information and advice?
For further information on your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority on OECD CRS Portal. You can also find out more at the OECD Automatic Exchange of Information portal
Saving Bonds
How can I apply for Savings Bonds?
Visit any of the nearly 300 outlets, including our branches in Dubai, Abu Dhabi and Al Ain, leading exchange houses citywide and affiliated banks, to start your savings journey with National Bonds. You can also save via our mobile app http://bit.ly/NBCenMobileApp or call 600522279 to contact our sales team. Customers overseas can also save via our website, mobile app or by calling our international number at +971 4 384 8000.
Who can have a savings plan with National Bonds?
UAE residents as well as non-residents can sign up for National Bonds savings plans. The minimum required age is 21 years, unless the plan is managed by a father/legal guardian on behalf of the minor.
What identification do I need to apply a savings plan?
How many savings certificates can I have?
You can have as many savings certificates as you wish. There is no maximum limit on how much you can purchase. However, the minimum required purchase with National Bonds is AED 100 (10 units of AED 10).
How and where can I collect my profits?
Profits earned on Savings Bonds are distributed in the shape of issuing additional Saving Bonds. Additional Saving Bonds are only issued if the total amount of profits earned by the Bondholder is AED 10 or more, and are only issued in multiples of AED 10. When the amount of earned profits is less than AED 10 or the amount is not in multiples of AED10, the amount or the remaining amount is called Residue Profit. The Residue Profit will be available to the Bondholder during each calendar year. During which the Bondholder can top up the amount to reach AED 10 and convert it into Saving Bonds or withdraw the amount.
Is everyone eligible for the profit distribution?
Each Savings Bond is entitled to a pro rata share of the distributable profits for a calendar year. The pro rata share of profit is based on weights determined in accordance with the next question below from the date of issuance.
Do I have to complete one financial year to be eligible to receive the profits?
No. The profits will be distributed according to the number of Saving Certificates and for that particular time period. In case the Savings Bonds are redeemed during a calendar year, the weight of the Saving Bonds redeemed before completing a holding period of 90 days is 40%, while the weight is 60% for Saving Bonds redeemed after completing a holding period of 90 days and before completing 180 days, whereas the weight is 80% for Saving Bonds redeemed after completing 180 days and before completing 360 days, and finally the weight is 100% for Saving Bonds redeemed after completing 360 days.
Can I receive my profits at any time of the year?
The profits are distributed within the first quarter of the year, post the completion of the previous financial year ( Jan - Dec ).
How do I redeem my Saving Certificates?
For redemptions AED 10,000 and above, customers can call 600 522279 for a seamless service. For redemptions of AED 10,000 and below you can get instant cash by visiting selected branches from our distribution network. Non UAE residents can submit the redemption form via calling Tel: +971 4 384 8000.
Is there a minimum holding period before I can redeem my Saving Certificates?
For cash/cheque purchases, Saving Certificates must be held for a minimum period of 30 days from the date of issuance before they can be redeemed. For credit card purchases, there is a lock-in period of 60 days.
Can I make a partial redemption?
Yes. You can redeem your Saving Certificate partially and your new Saving Certificate will be issued for the balance held with National Bonds Corporation PJSC. Click here to purchase now
Corporate Savings Program
How can corporations apply for the Corporate Savings Program?
Corporations can save by calling our call center at 600522279, by visiting National Bonds branches or through their Relationship Managers.
Are all corporations eligible for the profit distribution?
Is the corporation obliged to have to complete one financial year to be eligible to receive the profits?
No. The profits will be distributed according to the number of Saving Certificates and for the time period. In case the Saving Bonds are redeemed during a calendar year, the weight of the Saving Bonds redeemed before completing a holding period of 90 days is 40%, while the weight is 60% for Saving Bonds redeemed after completing a holding period of 90 days and before completing 180 days, whereas the weight is 80% for Saving Bonds redeemed after completing 180 days and before completing 360 days, and finally the weight is 100% for Saving Bonds redeemed after completing 360 days.
How and where can corporations collect their profits?
Profits earned on Savings Bonds are distributed in the shape of issuing additional Saving Bonds. Additional Saving Bonds are only issued if the total amount of profits earned by the Bondholder is AED 100 or more, and are only issued in multiples of AED 10. When the amount of earned profits is less than AED 100 or the amount is not in multiples of AED10, the amount or the remaining amount is called Residue Profit. The Residue Profit will be available to the Bondholder for a period of three months from the date of profit distribution. During which the Bondholder can top up the amount to reach AED 100 and convert it into Saving Bonds or withdraw the amount. If no action is taken during this period, the Bondholder will be considered waiving his/her right to this amount and granting the Company the authority to transfer the amount to the benefit of the investment pool.
Can the corporation receive its profits at any time of the year?
How can the corporation redeem its Saving Certificates?
For redemptions the authorized signatory of the corporation can call 600 522279 for a seamless service.
Is there a minimum holding period before the corporation can redeem its Saving Certificates?
For cash/cheque purchases, Saving Certificates must be held for a minimum period of 30 days from the date of issuance before it can be redeemed. For credit card purchases, there is a lock-in period of 90 days.
Can the corporation make a partial redemption?
Yes. Partial Redemptions are allowed and new Saving Certificate will be issued for the balance held with National Bonds Corporation Sole Proprietorship P.S.C.
