UAE banks set to raise minimum account balance for individuals?

Dubai: Several major banks operating in the UAE plan to increase the minimum required balance for current accounts from Dh3,000 to Dh5,000 starting June 1, according to the UAE Central Bank’s regulations on personal loans.

At least one leading bank has already implemented the new minimum balance, and others are expected to follow suit, according to a survey conducted by ‘Emarat Al Youm’.

The move, which will directly affect account holders across the country, introduces a higher financial bar for maintaining bank accounts without incurring fees. Under the revised policy, customers who fail to meet the new Dh5,000 minimum balance will be subject to a monthly fee of Dh25, unless they qualify for an exemption.

To be exempt from the monthly fee, banks now require customers to either maintain a total account balance of Dh20,000 or more, transfer a monthly salary of at least Dh15,000, or if their salary falls between Dh5,000 and Dh14,999 hold an active credit card, overdraft facility, or loan with the bank. 

For those who transfer a salary of less than Dh5,000, or who do not meet the additional criteria, the monthly fee applies automatically. For account holders who do not fit into any of the above categories, the fees could rise further, with some banks charging Dh100 or Dh105 per month, depending on the type of account.

The current system, in place since 2011, set the minimum balance for personal loan-linked accounts at Dh3,000 to qualify for a waiver of the Dh25 monthly fee.

Huda Ata is an independent writer based in the UAE.