If you are looking to open a bank account Dubai, United Arab Emirates, there are several banks. Each of them offers a variety of options for bank accounts. To open a bank account in UAE, you will need certain relevant documents. For instance, a passport and proof of residence. Before going through this process you have to know certain relevant aspects. Among them, are the types of bank accounts that exist in the country.
In this article, we will explain everything you need to know about how to open a bank account Dubai. First, we will provide you with information about the different types of bank accounts available. For example, savings accounts and checking accounts. Later, we will explain the requirements to open a bank account online in Dubai. These include the documents you will need to present and the charges associated with bank accounts. Finally, we will give you some useful tips to help you choose the ideal bank for your needs.
Benefits of Opening a Bank Account in Dubai, UAE
Currently, the UAE has an amazing banking system. Which has some characteristics that make it special and effective. For instance, excellent customer service and economic stability around the world. Many entrepreneurs, foreign investors, and freelancers are looking to open a bank account in Dubai.
Any freelancer who wants to be part of the 7 best freelance jobs in the UAE. You must have a bank account in the UAE. While it is true, it is not a legal obligation to have a bank account in the country. However, there are several reasons why having one is essential. Generally, all account holders can better manage their saving and spending habits.
People who open a bank account Dubai can take advantage of a wide range of benefits and below you will see the main ones.
Make your life easier: In anyone’s life, they have surely tried to pay high bills in cash, without using the facilities of bank accounts. Making payments this way can be very complicated in most cases. That is why having the option to write a check or make a transfer can be a great relief. Especially, for those who want to make money online as a freelancer.
Keeping your savings safe: Earlier, people kept money in many ways to protect it. For instance, under the mattress. Which was a very risky method for any incident that happened in the house. These days, you can keep all your savings in one bank account which ensures these funds are safe.
In summary, the advantages you can access are the following:
- Confidentiality of your personal data and your funds.
- Stability, security, and reliability of your funds.
- Quickly and easily withdraw and deposit funds.
- Access to attractive interest rates on deposits.
Types of Bank Accounts in Dubai, UAE
To open a bank account Dubai you have to know what the types of bank accounts are. Currently, several types of bank accounts store funds on behalf of the client. Below you will see all the details about the bank account categories in the UAE.
- Savings accounts: These accounts are deposit accounts at banks in which account holders earn modest interest rates. Additionally, monthly withdrawals from a savings account may have a limit, depending on the bank. Finally, savings account holders have to maintain an average balance per month. However, if it is a zero-balance account, this will not be necessary.
- Current account: Current accounts in the UAE are mostly common for companies. That is, entrepreneurs and public companies tend to have a greater number of regular transactions in banks. Generally, checking accounts can make deposits, withdrawals, and counter-transactions. These types of accounts usually do not have a monthly transaction limit.
- Fixed Deposit: FDs or fixed deposits are a financial tool provided by banks to provide holders with high-interest rates. Of course, until a predetermined expiration date. Generally, these accounts offer significantly higher interest rates than savings accounts.
- These types of accounts usually have a short-term expiration date. Which can vary from a few days to a few years. It is important to note that the account holder cannot withdraw his funds before maturity.
- Payroll account: This type of account is where salaries are credited. Generally, it is large corporations or important companies that request the opening of these accounts.
- Business accounts: Every business requires a system to manage funds. Business accounts in the UAE serve the sole purpose of monitoring and managing business funds. In addition, creditors, the effective balance, the payroll delivered to employees, and more.
Requirements for Opening a Bank account in the UAE
To ensure getting the best bank account in the UAE, every applicant must meet some basic eligibility criteria. The bank of interest will determine each of these factors. Below, you will see all the requirements you need to open a bank account Dubai.
Minimum income: Each applicant must have a certain minimum monthly income to apply to open a bank account Dubai. This is a requirement that will vary depending on the financial institution or bank of your interest.
Residence: Many banks or banking institutions only allow residents of the UAE to open bank accounts with them. One of the requirements to open a bank account in UAE is that applicants present valid proof of residency.
Age limit: Another important requirement is a certain age requirement for opening a bank account Dubai. Generally, the minimum age they require is 21 years of age in the United Arab Emirates. However, this may vary from bank to bank or is decided at the discretion of the financial institution in question.
Salary or wage transfer: Salary transfers are not mandatory for all banks. However, some banks may allow opening an account only to those who transfer their salary to an account with them.
Documents Required to Open a Bank Account in the UAE
What do I need to open a bank account in UAE is a very frequently asked question. For this reason, if you are going to open a bank account in UAE you must know the necessary documents that will be presented below:
If you want to open a personal account, you will need these documents:
- A copy of your passport.
- You must bring an original copy of your personal bank statements for the last 6 months. These can be from your home country or from anywhere in the world.
- A copy of a utility bill that serves as proof of your address.
- Your residence visa and your Emirates ID.
If you have a residence visa this process is simple. However, if you are not a resident you may have problems obtaining these documents. For this reason, due to the large number of foreigners in the country, banks are used to opening accounts for non-residents. On the other hand, some banks may require other documents such as the following:
- A CV that is updated.
- Employment letter.
- The original copy of a reference letter from your bank where you have an account that is personal/corporate. This can be from your country of origin or any country.
If you want to open a trading account, you may need additional documents such as:
- Your commercial license is valid.
- The certificate of incorporation
- Share certificates.
- Your company memorandum.
- The statutes.
- The signatures of the shareholders and copies of their passports.
It should be noted that each bank has different requirements. For this reason, the information provided above should be used as a guide. The bank of your choice will inform you in detail of the documentation necessary to open your account.
Bank account charges in the UAE
You need to know that charges on bank accounts in the UAE will depend on the bank and the type of account. An example of this is Dubai Commercial Bank which has a monthly fee of AED 26.25 for savings and current accounts. Additionally, it requires you to have an average minimum balance of AED 5,000 monthly.
On the other hand, we found that the Emirates NBD offers a commercial account that does not require a minimum balance. However, it charges a monthly maintenance fee of AED 99 if your average monthly balance is less than AED 50,000. Additionally, banks may charge you fees for specific transactions. Among these, are cash withdrawals, issuance of checks, and transfers.
A clear example of this is the CBD which charges a commission of 1% of the amount in foreign currency for transactions that are in cash in foreign currency. Taking this a minimum of 21 AED. For this reason, it is important to note that these fees vary depending on your bank and account type.
It is recommended that you check with the bank you wish to open your account about all of these charges. You can even visit their website to learn more about the charges and fees that are associated with your bank account.
