How to Open Bank Account in UAE?
Nowadays, it has become an easier & reliable task to open a bank account quickly through an online way. Every bank offers a large variety of banking services in the UAE. Not only residents, but these services are also available for expats. It is very convenient to online bank account open in UAE with hassle-free steps. With the online way, you can also go to a bank near a branch to open a new account. UAE’s banking system is stronger as compared to other countries because the Central Bank keeps regulating the functioning of all banks. Before opening bank accounts, all individuals must have to know which account type is the right choice for their needs. In this blog, there is guidance about the procedure for the opening of online bank accounts and the required documents that will need to be submitted.
Select the Bank Type for the Opening of a Bank Account
Both national & international banks are operating in the UAE in a large number. All banks have their particular objectives. Because of these objectives, these banks are divided into four major types. So, you have to know about these types and then choose a type which you want for your financial needs.
- Islamic banks
The languages used in the operation of UAE’s banks are Arabic & English. Therefore, the banking services are easily offered by them to all individuals. Like, the availing of a loan amount from banks is quite simple in UAE. In addition to banks, online lenders such as Karz provide higher debts with lower rates that make the low cost of loans.
UAE Bank Account Opening Procedure:
The opening procedure of bank accounts is a simplified task. You have both choices of going to a branch of a bank or using the official banks’ websites. In the branch, their professionals guide you about its complete procedure. On the other hand, all the information about opening an account is available on their websites. So, you will quickly open the account without any hurdles. The simpler steps involved during this process the filling out the application form and then attaching all the documents with it and submitting it. Both locals & expats are eligible to apply for an account. But there is little difference in their processes.
Open Online Bank Accounts for Residents:
All the residents can open any kind of account online. There is no restriction in the opening of accounts for them. In general, there will only be 2 days for them to get access to your account. But the important thing is that you have all the required documents when you apply for it. The relevant documents for this process for residents & nationals are:
- One copy of your passport and passport must be valid
- Visa copy but it is not a mandatory document for nationals
- Need to submit the certificate of salary transfer which shows that you will use this bank account the receive your monthly salary
- Banks demand a valid Emirates ID for the completion of this procedure
Moreover, there are also many other documents that a bank can demand from the applicants. For instance, some banks’ essential documents also include utility bills.
Open Online Bank Accounts for Non-residents:
In contrast to residents, non-residents can also apply for the opening of accounts in this country. But there are a few limitations to them. Most banks prefer to only provide savings accounts to non-residents. Further, they do not get access to the use of a checkbook. But still, the good point is that they get a debit card with the opening of an account. A debit card is an effortless way to get access to all your funds anytime and anywhere. However, the banks have their criteria for the minimum & maximum balance in accounts. You need to meet to meet their criteria in order to keep functioning of your account. The required essential documents are:
- Copy of passport but with it, you need to show the original passport because the bank will check it and do its verification.
- The permit of your visa that shows your purpose of staying in the UAE
- Salary certificate for the demonstration of your monthly income
- Copies of utility bills but that must be recent
- If you already have an existing account, then you will need the reference letter from that bank.
- Just like other documents, the bank statement will also be compulsory to submit. These statements must be the latest.
- If a bank requires to know your income source, then you have to provide its information also.
Fees for Opening Bank Accounts
The fee charges are compulsory to pay for both opening & maintaining of any kind of account. However, most banks do not prefer the charges for opening because they set a criterion of minimum balance. Commonly, the accounts’ balance must be higher than three thousand to five thousand AED. All account holders have to keep a higher amount than the minimum limit. Furthermore, you can use any other ATM but the charge for using other ATMs in UAE is 2 AED. If you are a resident and apply for the opening of an account, you will get your first free chequebook. After that, the charge for this chequebook is 25 AED. The letter for checking the account balance has also a fee of 50 AED. Sometimes, people want to close their accounts for of their personal reasons. The closure fee is also mandatory and it is almost 100 AED.
Many banks offer loans with extra processing fees. But when you apply through any other lender, you may need to pay a lower or no processing fee. The financial company Karz never charges any additional charges for providing their financial services. With the help of your personal account, you will get not only the benefit of availing of a low-cost loan but with easier approval. The chances of the application’s rejection are also lower. So, it is a wiser and beneficial step to open a bank account for your financial life.
Things to Consider for Opening Accounts
Accounts opening are easier and quicker process for every individual living in the UAE. Residents, non-residents, and even expats can get their accounts. The banking system is advancing day by day and they are always ready to meet the clients’ needs. But you have to consider the below-mentioned things whenever you decide to open your account.
- Know the complete information of banks charges and then do a comparison of charges between different banks. You should also be aware of when to pay the fees.
- Check the requirement of minimum & maximum balance. So, you will always keep more balance.
- Every month, the number of withdrawals is specific. Make sure the withdrawal number is enough for your financial needs.
- All banking services come with particular charges. These charges are related to checquebooks, online banking services, debit cards, etc.
- Every bank provides the facility for international transactions. In this way, the expats can easily send money to their families in their homeland countries. So, check this factor also if the bank allows this service of international transaction or not.
- Those banks are the best that always give you access to funds digitally. After opening an account online, you can also use a way of digital banking to learn about the details of your funds with no effort.
- The bank’s branch or ATM must be nearby, so for any query you can reach the branch in a shorter time. Besides, you will also use its ATM conveniently without spending extra charges.
Proper research is very important when you choose a bank for opening an account. All the details are also online available. It helps in easily doing the comparison between them. Particularly, you can also review the people’s feedback about using the accounts.
Bank Accounts Common Types
There are various types of accounts and all banks offer all types to their clients. As per your needs of finances, you can select its type. The common types are:
Investment: It is particularly for the investing of individual funds. The duration of investments can be fixed or variable. A person will get at least 3%-5% interest. But there is an initial deposit criterion also.
Saving: If you keep your money in a savings account, your money will work for you. The banks offer interest rates on savings also. But you will pay the penalty in case of partial withdrawal.
Islamic: It is based on Islamic Shariah Law. This account type offers all the banking services but on the basis of Islamic principles.
Current: This type is ideal for all those who do unlimited transactions every day. With transactions, they also get the services of easily doing chequebook payments.
The bottom line
We hope that reading this blog of a step-by-step guide to opening a bank account online in the UAE will help you a lot if you plan to open your account. It is not a complex procedure but you will need to fill the form accurately and submit it with all relevant documents. Always choose the account type according to your financial requirements.