Several banks operating in the UAE are preparing to raise the minimum balance requirement on customer accounts to Dh5,000, up from the longstanding Dh3,000 threshold set by the Central Bank’s personal loan regulations. The new policy will take effect from June 1, although at least one bank has already begun enforcing the revised rules.
Under the new guidelines, customers who fail to maintain the Dh5,000 minimum will be charged a monthly fee of Dh25.
In an effort to ease the impact on select account holders, banks have introduced exemptions. Customers must hold a credit card or have personal financing (such as a loan or overdraft facility) to avoid the Dh25 minimum balance fee.
A document obtained by the local newspaper Emarat Al Youm outlines several exemptions and fee structures based on account activity and salary levels. According to the document:
“Fees will be waived for customers maintaining a total balance of Dh20,000 or more, those with a monthly salary transfer of Dh15,000 or more, or customers with a monthly salary transfer between Dh5,000 and Dh14,999 who also have a credit card, overdraft facility, or loan.”
The document also states:
“A fee of Dh25 will be imposed on customers with a monthly salary transfer between Dh5,000 and Dh14,999 without a credit card, overdraft facility, or loan, as well as those with salary transfers less than Dh5,000.”
Furthermore, for customers who do not fall under any of the outlined salary or product-linked categories, the fees may be significantly higher:
“All bank customers who do not fall under the above categories will be required to pay a fee of Dh100 or Dh105, depending on the account type.”
This marks a notable shift from the Central Bank’s 2011 regulations, which required a minimum balance of Dh3,000 to avoid a Dh25 fee. The updated policies reflect evolving banking strategies to encourage broader financial product engagement, such as credit cards and loans, while also aligning account maintenance fees with customer income and account activity levels.
Customers are advised to review their banking arrangements and consider linking their accounts to qualifying products or adjusting their salary transfers to avoid incurring additional fees.
