UAE Bank Balance Requirements: New Changes Explained

UAE Bank Accounts: Minimum Balance Requirement Rises from June

Several banks operating in the United Arab Emirates will modify the minimum balance requirements for personal bank accounts starting June 1, 2025. Previously set at a lower threshold of 3,000 dirhams, many financial institutions are now requiring 5,000 dirhams; otherwise, a monthly fee will be charged. This change could affect many account holders, especially those without credit cards or personal loans.

What Exactly is Changing?

Under the guidelines of the central bank, customers previously needed to maintain at least 3,000 dirhams in their account to avoid a monthly fee of 25 dirhams. From June, however, several banks will increase this amount to 5,000 dirhams, marking a significant jump for those on lower incomes.

Who Has to Pay and Who is Exempt?

The modified rules clearly define under what conditions one may be exempted from the fees:

Full exemption is granted to customers who:

maintain at least a 20,000 dirhams balance in their account,

or receive a monthly salary transfer of more than 15,000 dirhams.

Conditional exemption is granted to those who:

receive monthly salary transfers between 5,000–14,999 dirhams,

and simultaneously possess a credit card, overdraft facility, or personal loan.

Fee requirement applies to:

those who receive monthly salary transfers between 5,000–14,999 dirhams but do not have any of the aforementioned financial products,

as well as those who have a monthly salary transfer of less than 5,000 dirhams.

Customers falling outside these categories may be charged a monthly fee of either 100 or 105 dirhams, depending on the type of account they hold.

Why is This Happening?

The banks' move is likely influenced by rising operational costs and the need to adapt to the regulatory environment. The new guidelines could encourage customers to use more banking products—such as credit cards or personal loans—since possessing these can exempt one from the fees.

What Should You Watch Out For?

It is crucial to monitor monthly deposits and current balances.

If your salary doesn't exceed 5,000 dirhams, applying for a credit card or other banking products might be advisable.

Pay attention to your account type-associated fee details, which may vary from bank to bank.

Final Thought

The changes highlight that maintaining a bank account in the UAE is no longer necessarily fee-free. Financial literacy and awareness of banking terms have become essential for those who want to avoid unexpected fees and optimize their finances in the changing regulatory landscape.

(Source of the article: Central Bank communiqué.)