Procedure for Opening a Bank Account in UAE

The procedure for opening a bank account in UAE is same as in most other countries. But, requirements generally vary from one bank to another. In order, to open a current or checking account in UAE one has to be a resident. In some of the bank non residents are also allowed to open a saving account. A minimum account balance is set as limit in some banks. Once one is accepted to open an account he can sponsor other family members who should be his dependents to open bank accounts.

Required Documents

• Passport with residency visa both original and copy.
• No objection certificate or letter of no objection from employer stipulating the salary. This shows the amount that will paid regularly into the bank account.
• Tenancy agreement is asked sometimes as proof of one’s residential address.
• Photographs and copy of the above documents are also required.

Information on Current Account

Transaction in Dubai is generally cash based and cheques give rise to suspicion specially for local retailers. Moreover, like many other countries cheque bouncing that is issuing a cheque with insufficient funds in account is a criminal offence. Thus, most current accounts are preferred not to be cheque accounts.

Banks in UAE provide almost all standard banking services like cheque clearance, direct debits, repayments of credit card and standing orders. After a certain number of transaction in a year charges are levied which are fixed at the discretion of the banks. So it is advisable to shop around before opening an account to avail the best offer. ATM cards with personal identification numbers (PIN) are issued by the banks. Visa or Master Cards are also issued with certain spending restrictions which are generally negotiable.

It is beneficial to open an account with employer’s bank as benefits are offered better on group accounts. It also becomes easier to access salary in the same bank. It is always better to close the account before changing the bank in order to avoid unnecessary charges. Current account pay almost nothing as interest on account balances. Thus, it is better to keep the surplus balance in a savings or deposit account.

Cheques can be filled either in English or in Arabic. Bank statements and correspondence are also be provided in either language.

Bank account should not be overdrawn except an authorisation from the bank. When the sum overdrawn is less than the bank may pay the amount and inform about the shortfall in certain instances. But it is not the same with a new customer or a customer with poor record, substantial charges may be levied.

Savings Account And Deposit Account

Savings or deposit account can be opened in any retail bank in UAE. Unlike USA and UK there are no specific savings banks in UAE. Deposit accounts offer higher rate of interest in comparison to savings account. But it is easier to withdraw money from savings account. Passbook to record financial transaction is given to savings account holder. A monthly statement is also issued to record the same. ATM card, a cheque book and a credit card may also be issued in certain types of account.

Various types of deposit account with various interest rates are available. They are mostly based on the amount of deposit and minimum period of deposit. Interest are usually paid monthly but some banks offer to pay weekly only on accounts with large deposits. Facilities like Standing order and cheque books are also issued by some banks in lieu of maintenance charges. Relevant Sites- http://www.dubai.ae/en.portal?topic,openbankacc,1,&_nfpb=true&_pageLabel=general