Month-to-month Earnings Scheme in UAE – myMoneySage Weblog

The Second Wage Nationwide Bonds Scheme is a financial savings plan within the UAE that lets you earn a month-to-month revenue out of your investments. The scheme affords contributors the liberty to decide on their most popular tenor, starting from 3 to 10 years. Throughout this era, financial savings develop steadily, with extremely aggressive revenue charges. The reinvestment of month-to-month returns additional accelerates the expansion of invested funds.

Click on right here to be part of myMoneySage Elite an unique group to the elite and discerning who need to maximise their wealth by leveraging the ability of unbiased recommendation

The longer contributors stay within the Second Wage Nationwide Bonds Scheme, the better their possibilities (Almost 30 instances) of successful prizes within the AED 35 million Rewards Program attracts. Members can improve their probabilities of successful by making common contributions to the scheme. This distinctive function enhances the financial savings expertise by including a component of pleasure and the potential for substantial monetary beneficial properties.

On the finish of the chosen saving interval, contributors transition into the revenue part of the scheme. They start receiving their principal funding and accrued earnings on a month-to-month foundation, in accordance with their chosen revenue interval length. This ensures a gentle revenue stream to assist monetary objectives and aspirations.

The SSNBS affords extra advantages to contributors. It offers an inexpensive place to begin, with a minimal month-to-month funding requirement of simply AED 1,000. Members even have the chance to earn a month-to-month revenue, offering monetary stability and extra funds for private or household wants.

All through your entire tenor, contributors profit from a aggressive anticipated revenue price of 4.07% p.a., reinvested month-to-month. This ensures constant progress and enticing returns on their investments. Upon finishing 3 years within the scheme, contributors get pleasure from the additional benefit of getting the subscription price waived. This additional will increase the general return on funding, making it much more interesting.

How does the SSNBS work?

The SSNBS is a straightforward and easy-to-use financial savings plan. To take part, you merely have to open an account with a taking part financial institution or monetary establishment. After you have opened an account, you’ll be able to start making month-to-month contributions. The minimal month-to-month contribution is AED 1,000.

Your contributions shall be invested in a diversified portfolio of property, together with authorities bonds, company bonds, and equities. The precise mixture of property will differ relying on the tenor of your funding.

Your investments will develop steadily over time, with the potential to earn enticing returns. Additionally, you will have the chance to win prizes within the AED 35 million Rewards Program attracts.

On the finish of your chosen tenor, you’ll start receiving your principal funding and accrued earnings month-to-month. This ensures a gentle revenue stream to assist your monetary objectives and aspirations.

Who’s eligible for the SSNBS?

The SSNBS is open to all UAE residents, together with UAE nationals, expatriates, and college students. There are not any age restrictions, and you do not want to have a excessive revenue to take part.

Is the SSNBS a protected funding?

The SSNBS is a comparatively protected funding backed by the complete religion and credit score of the UAE authorities. Your investments are protected by the UAE Deposit Safety Regulation, which ensures the protection of as much as AED 250,000 per depositor per financial institution.

Is the SSNBS a very good funding?

The SSNBS is an efficient funding for anybody who’s searching for a protected, safe, and rewarding technique to develop their financial savings. The scheme affords a number of benefits, together with:

  1. Aggressive revenue charges.
  2. The chance to win prizes within the Rewards Program.
  3. A gentle revenue stream.
  4. Affordability.
  5. Straightforward to make use of.
  6. Safety.

What dangers are concerned on this funding?

  1. Market danger: The worth of your funding may go down in addition to up, so you could possibly lose cash. The Second Wage Nationwide Bonds Scheme is a fixed-income funding, which implies that the rate of interest is fastened throughout the funding. Nonetheless, the worth of the bond itself can nonetheless go up or down, relying on market situations. For instance, if rates of interest rise, the worth of your bond may go down.
  2. Inflation danger: Inflation is the speed at which costs for items and providers improve over time. If inflation is excessive, the worth of your cash will lower over time. Because of this the buying energy of your funding will lower, even when the rate of interest in your bond stays the identical.
  3. Liquidity danger: Liquidity refers to how simply you’ll be able to promote your funding with out dropping cash. The Second Wage Nationwide Bonds Scheme is a comparatively illiquid funding, which implies that it could be tough to promote your funding shortly if it’s good to entry the cash.
  4. Credit score danger: Credit score danger is the danger that the issuer of your funding will default on its funds. The Second Wage Nationwide Bonds Scheme is a government-backed funding, which implies that the UAE authorities is the issuer of the bonds. The UAE authorities has a powerful credit standing, so the danger of default is low. Nonetheless, there’s at all times some danger concerned when investing in any sort of funding.

Price particulars:

Listed here are some extra particulars in regards to the charges related to the Second Wage Nationwide Bonds Scheme:

  1. Subscription Price: A one-time price of AED 100 is charged if you open an SSNBS account.
  2. Month-to-month admin price: The month-to-month admin price is charged to cowl the prices of managing your funding. The price is AED 20 monthly.
  3. Overdue fee price: In the event you miss a fee, you may be charged an overdue fee price. The price is calculated as a proportion of the missed fee. The price is AED 25 per missed fee.

Preclosure penalty:

The preclosure redemption penalty for the Second Wage Nationwide Bond Scheme is 1% of the excellent principal quantity for every year remaining within the time period of the bond. For instance, in case you have a bond with a time period of 10 years and also you redeem it after 5 years, you may be charged a penalty of 5% of the excellent principal quantity.

The preclosure redemption penalty is designed to discourage buyers from redeeming their bonds earlier than maturity. It is because the federal government needs to make sure that it has entry to the funds raised by the bond challenge.

There are just a few exceptions to the preclosure redemption penalty. For instance, the penalty doesn’t apply if you’re redeeming your bond to buy one other Second Wage Nationwide Bond. The penalty additionally doesn’t apply if you’re redeeming your bond since you are retiring or since you are experiencing monetary hardship.

Click on right here to be part of myMoneySage Elite an unique group to the elite and discerning who need to maximise their wealth by leveraging the ability of unbiased recommendation


In conclusion, the Second Wage Nationwide Bonds Scheme stands as a transformative funding alternative for expats. By combining the advantages of versatile saving and revenue intervals, aggressive revenue charges, a rewarding Rewards Program, and quite a few extra benefits, the scheme empowers expats to safe their monetary future whereas having fun with the journey. Nonetheless, the scheme can’t be used as a spot to park emergency funds since there are penalties concerned for redeeming the funds in addition to the scheme requires a minimal funding interval of three years, which can not present fast entry to funds when wanted and Lastly there’s market danger concerned. Therefore, people seeking to make investments on this scheme need to be cognisant of the dangers concerned and whether or not or not the scheme fits their funding horizon.


This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any sound funding determination.

In the event you shouldn’t have one go to

Additionally Learn: A information to investing overseas by way of Liberalised Remittance Scheme (LRS)