Choosing Your First UAE Bank Account Without Paying for Features You Do Not Need

It’s a regular affair to have a bank account in the UAE as soon as you move in here. That’s where your paycheck goes, bills and rent go from you, and you can send money home from there. It can be easy to take the gamble and join the one that offers a welcome bonus, but it is important to consider how much the account will cost and how effective it will be during a normal month.

Start with your own cash flow. How much will come on a regular basis? How much will you have left after rent and other expenses? What services are you going to use? With those answers you can compare accounts without getting bogged down in benefits that are not important to you.

Separate account eligibility from ongoing conditions

Opening an account and the conditions for opening an account are two separate issues.

A salary requirement is about the salary required for an account or package. A salary transfer condition is a condition relating to how the income should be transferred to the bank. A minimum-balance condition refers to the amount of cash that you store there. Don’t assume that if one is satisfied, the others are satisfied too.

Read carefully the exact package terms. If there is a benefit associated with salary credits, an ordinary transfer from another account may not be eligible. Also, a product that does not specify a minimum salary may also have a balance requirement or some other charges.

A helpful question to ask when transitioning between jobs is what will happen during the transition period. If you have an irregular income, it’s if the account is still usable in a less busy month.

Match the account to your everyday payments

Before comparing brands, jot down what jobs you have to meet.

If a tenancy is set up by cheques, find out if there is a cheque book and how and at what cost the cheques are issued. If your primary need is a debit card, subjects like bill payments and transfers are directly compared. Don’t take it for granted that all savings accounts offer the same transaction services as a current account.

Consider cash, as well. Those who make regular cash deposits must be aware of how to access the deposit machine, but those who deposit cash infrequently might value the app and remote assistance.

Masarif’s UAE bank directory gives an initial look into the banks, their product categories and branch details. Get a short list of banks that provide services you need, and then look at what each bank offers in regard to specific account packages.

Calculate costs around a realistic month

You may not have access to free banking when you open a free account. Take a look together at the Key Facts Statement and the fee schedule for the account, noting any conditions placed on waivers.

Take into account any maintenance charges, withdrawals, transfers or paid services you anticipate utilizing. Don’t mix in extras that aren’t essential!

The following example is hypothetical, rather than a quotation from a UAE bank. If an account has a missed balance condition, AED 25 will be charged per month, suppose that this is the case. A missed day of that would result in a loss of AED 150 for the year. Those charges would be no less than a welcome reward of AED 100.

This is why the balance that you can maintain is more important than the balance that you may have built up on the day of the application. If moving money back and forth is required just to meet a condition, so too is the work that is done, and that should be part of your considerations, too.

If a requirement is to maintain an average monthly balance, find out how it is computed. A payment close to the end of the month may not result in the average that you are looking for.

Compare transfers using the amount received

If you’re making regular transfers to other countries, make sure to compare a typical transfer.

Request quotes using the same currency (dirhams), destination (country) and delivery method. Write down the total amount which the recipient will receive in quotes, and the delivery estimate and any extra charges not included in the estimate.

For instance, if you get identical total payment for both quotes but one includes fewer rupees or pesos, it is not irrelevant to the fact that it has a higher advertised transfer fee. This comparison is not an attempt to make a judgement about an exchange rate on its own.

See if a promotional transfer price is set to expire after a certain time. The story must be relevant to the transfers you will repeat, not just the first.

Test the practical details before committing

Create a little list of things that you would find cumbersome to fix later.

Are there statements that can be downloaded that you can use the format that you need? Is there an easy process for replacing lost debit card? Is there a way to reach support that you will do? Do the relevant cash machines or branches have a convenient location for your home and work?

If you make payments frequently that exceed the limits, review those limits and the procedure for changing them. Having a feature that exists somewhere within a banking application that is not as convenient as your usual routine is less useful.

These details should not be overlooked even if two accounts appear to be virtually the same on price.

Prepare documents for the exact application

Different banks may have different requirements for documentation.All banks and applicants will have different requirements for documentation. For example, Emirates NBD requires residents to provide Emirates ID, a valid passport and proof of address for residents’ salary accounts, while Emirates ID is also required for salary accounts.

Follow the checklist for your product you are going to open. In case a document is still available or you recently changed your employment information, confirm what is necessary. While it’s helpful to know what kind of documents to expect, it doesn’t automatically mean that any particular paper is required for all accounts.

When applying, retain the account name, package terms and fee schedule. This helps you to compare the account you receive with the one you have chosen.

Choose for the year ahead

Compare the following data for a normal month, a month with unusually high spending, and a month without the usual salary credit. An account that is active for both of those scenarios is more useful than one that is only active when you can keep up certain conditions.

The ultimate selection ought to be a no-brainer: it helps your payments, meets your cash flow, and costs are transparent. The amount of a temporary welcome offer is not a good enough reason for a first UAE bank account as it is the size of the base.