(MENAFN - The Peninsula) Individuals in Qatar preferred to keep their money in fixed deposits (FDs) than saving deposits in 2013.
Fixed deposits of individuals in banks registered a strong growth of 30 percent last year, while saving deposits managed to clock 19 percent growth.
According to Qatar Central Bank data, fixed deposits of individuals grew to QR94.97bn at the end of 2013 from QR72.87bn at the
end of 2012 whereas saving deposits rose to QR44bn at the end of 2013 from QR37bn at the end of 2012.
Total deposits of banks, which included all kinds of deposits including public sector institutions, private companies and individuals, grew by 23 percent to QR514.8bn at the end of 2013 from QR417bn at the end of 2012.
The surge in fixed deposits shows that there is a large chunk of people in Qatar who prefer safety of their hard earned money than investing it in stock market to get
The inclination to put money in fixed deposits increased more after the crash in stock markets around the world due to global financial crisis
Fixed deposits have been growing in Qatar at a healthy rate. In 2009 when stock markets crash, individuals rushed to banks to park their money and fixed deposits increased by 20 percent to QR51.07bon at the end of 2009 from QR42.58bn in 2008.
The rush continued the following year also as fixed deposit grew by 27 percent
to QR64.89bn in 2010.
After that the deposits grew by five percent to QR68.27bn in 2011 and then by 6.7 percent to QR72.87bn in 2012
According to the experts, the growth in fixed deposits in Qatar is likely to continue in coming years as many investors do not like to invest money in stock markets because of their low risk appetite. For them
fixed deposits are the best bet because of the safety aspect
In 2013, November emerged as the best month for banks in terms of growth in fixed deposits. Fixed deposits clocked the highest growth of nine percent in November. These deposits grew to QR94.8bn at the
end of November from QR86.9bn at the end of October
In case of saving deposits, December was the best month for banks in terms of growth. Saving deposits registered the highest growth of 7.5 percent in December. These deposits grew to QR44bn at the end of December from QR41bn at the end of October