What are the types of bank accounts in Dubai?

There are several different types of bank accounts, which cater to both non-residents and residents of the UAE.

Current Accounts

An Emirates Islamic Current Account is a transaction account, which comes with a checking option for the accountholder. An Emirates Islamic Current Account comes with Debit card facilities, check-book, along with many other banking benefits.

A current account is ideal for transfers and transactions made on a daily basis. Your current account will come with a check-book, which is great for issuing rent checks to your landlord.

Banks in the United Arab Emirates usually allow you to open two types of current accounts. One type comes with salary transfers while the other does not.

If you have a job in the UAE, you can open an account at your employer’s bank to get your salary faster. If you use a different bank from your employer, it could take up to a few days for your salary to arrive.

You can open an Emirates Islamic Current Account for several major currencies, including USD*, GBP, AED, Euro, Yen, Saudi Riyal, Kuwaiti Dinar, Canadian Dollar, Qatari Riyal, Bahraini Dinar and Omani Riyal. However if you open your Current Account in a different currency it will not offer debit card and cheque book facility options.

When opening a Current Account the minimum balance requirement must maintain at least AED 3,000 in the account. However when your salary is transferred to the Current Account, the minimum balance requirement is waived.

Savings Accounts

Many people in the UAE open a savings account so that they can get the most out of their money. Savings accounts offer higher interest rates than checking accounts do, but provide limited access to funds. They also can cause penalties for withdrawals.

Savings accounts usually operate on either a variable or fixed interest rate. Within your savings account you can choose which currency you’d like to denominate your funds in.

Savings accounts can also be used as salary accounts. However, savings accounts do not usually come with a check-book, which can make them a little inconvenient for this type of use.

When opening a savings account is important to choose the right bank. The interest rate, minimum deposit and fees for your savings account will differ from bank to bank. While these amounts may be minor they can add up over an extended period of time, costing you money.

Investment Accounts

Another type of service you can take advantage of when opening a bank account in the UAE is an investment account. In the UAE, you can sign an investment agreement with any bank, which allows you to open an investment account.

The investment period for these usually ranges from 12 months to 10 years, but they can be longer, too. The investment agreement gives you a minimum assured ROI of 3-7% annually.

Just note that investment accounts come with minimum balances. The minimum required balance will vary depending on which bank you choose to partner with.

Offshore Accounts

The UAE is a haven for expats, which is why the nation offers offshore banks from jurisdictions the world over. This is especially true in Dubai, where many expats choose to live and work.

In the United Arab Emirates, anyone who holds a valid residence visa is eligible to open an offshore account and use it to import and export their funds. It’s considered to be a secure, stable, and reliable way of moving money and usually involves lower taxes than other banking options.

Offshore banking encompasses many different services in the United Arab Emirates. A few of these services include:

• Asset protection
• Wealth management
• Portfolio management
• Private bank accounts
• Company formation
• Inheritance planning