Several leading banks in the United Arab Emirates are preparing to raise the minimum balance requirement for current accounts from AED 3,000 to AED 5,000, starting June 1, in line with updated guidelines issued by the UAE Central Bank regarding personal loan-linked accounts.
According to a recent report by Emarat Al Youm, at least one major financial institution has already enforced the new threshold, with others expected to adopt similar changes in the coming days.
This shift will impact a wide range of customers, as failing to maintain the new minimum balance of AED 5,000 could result in a monthly service fee of AED 25, unless the account holder meets specific exemption conditions.
Exemptions and Penalties
To avoid the monthly fee, account holders must now meet at least one of the following criteria:
- Maintain a total balance of AED 20,000 or more across accounts
- Transfer a monthly salary of AED 15,000 or above
- Transfer a salary between AED 5,000 and AED 14,999 while also holding an active credit card, overdraft facility, or loan with the bank
Those who do not meet these requirements—especially individuals with a monthly salary below AED 5,000—will be automatically charged the service fee.
In some cases, where none of the exemption criteria are met, banks may impose higher monthly fees, ranging from AED 100 to AED 105, depending on the account type and specific bank policies.
The current Dh3,000 minimum balance rule has been in effect since 2011, primarily for accounts linked to personal loans. The upcoming adjustment represents a significant change in retail banking, aiming to align with evolving market conditions and regulatory standards.
