UAE Banks to Raise Minimum Account Balance Requirements Starting June 1

Dubai: Several leading banks in the UAE are preparing to raise the minimum balance requirement for current accounts from AED 3,000 to AED 5,000, effective June 1, in line with updated UAE Central Bank guidelines related to personal loans.

According to a recent survey conducted by Emarat Al Youm, at least one major bank has already enforced the new threshold, with others expected to implement the change soon. The revised policy introduces a stricter financial benchmark for maintaining bank accounts without incurring additional fees.

Under the new rules, customers failing to maintain the minimum balance of AED 5,000 will be subject to a monthly fee of AED 25, unless they meet specific exemption criteria.

To avoid this fee, customers must fulfill at least one of the following conditions:

• Maintain a total account balance of AED 20,000 or more
• Transfer a monthly salary of AED 15,000 or above
• For those earning between AED 5,000 and AED 14,999, hold an active credit card, loan, or overdraft facility with the bank

Customers transferring a salary of less than AED 5,000 and not meeting the other criteria will automatically incur the monthly fee. Additionally, for account holders who fall entirely outside the exemption categories, some banks may impose higher charges ranging from AED 100 to AED 105 per month, depending on the account type.

The existing system, in place since 2011, set the minimum balance requirement at AED 3,000 for personal loan-linked accounts to avoid the AED 25 monthly fee. The upcoming changes reflect a broader shift in banking practices aimed at aligning with regulatory updates and evolving market dynamics.