Banks in the United Arab Emirates (UAE) have announced that they are increasing the minimum balance requirements for current accounts from AED 3,000 to AED 5,000 from June 1, 2025. Following the announcement, people are facing difficulties and are not sure whether they will be affected by this update. This change is being made in accordance with the UAE Central Bank’s personal loan regulations. In this article, we will tell you the full details of the new policy, how to avoid fees, and alternative options so that you can make the best decision according to your financial needs.
What are the new minimum balance requirements?
- Previous Limit: AED 3,000
- New Limit (From June 1, 2025): AED 5,000
- Monthly Fee for Non-Compliance: AED 25
- Zero-Balance Accounts: A fee-free alternative (more details below)
Let’s explain:
Several major banks in the UAE are increasing the minimum balance limit for their current accounts from AED 3,000 to AED 5,000. If you do not meet this limit, you will be charged a monthly fee of AED 25. Some banks have already implemented this change, while others are preparing for it. The new policy will take full effect from June 1, 2025.
If you have 3,000 or less in your account, you will have to pay a fee of AED 25 per month. If you want to avoid this, you can open a zero-balance account, which has no balance limit and extra fee.
Fee Exemption Criteria:
If you can’t meet the new minimum balance requirement or don’t want to shift to a zero account, don’t worry. You can get a monthly fee waiver by meeting one of the following conditions:
- Credit Card: Always have an active credit card from your bank.
- Personal Financing: Get a personal loan or other financing from the bank.
- Total Balance: Have a total balance of AED 20,000 or more across all your accounts (savings, current, etc.). This must be in the same bank.
- Salary Transfer: Transfer a minimum of AED 15,000 of your salary to the bank per month.
- Special Salary Customers: If your salary is between AED 5,000 and AED 14,999, you will need an active credit card, overdraft, or loan to be exempt from the fee. This will allow you to fully meet the terms and avoid the monthly fee.
Note: If you do not meet the above conditions, you may be charged a monthly fee of AED 100 or AED 105 depending on the account type. This fee may vary depending on your bank and the amount you have in your account.
Zero Balance Accounts: A Simple Alternative
As I told you above, you should open a zero balance bank account, as it offers convenient banking facilities with no minimum balance requirement. Several leading banks, such as HSBC, Abu Dhabi Islamic Bank (ADIB), and First Abu Dhabi Bank (FAB), offer zero balance accounts.
Low-income individuals mostly use these types of accounts because they allow them to open accounts without any additional verifications.
Should you be concerned?
This change is more manageable for you if you use salary transfer or other banking services. If you have a bank account that you use but the balance usually remains below AED 5,000, you should contact your bank to discuss your options. Here are some practical tips:
- Contact your bank: Contact your bank’s website or customer service and confirm your account terms.
- Consider zero-balance accounts: If you want to avoid fees, zero-balance accounts are a great option.
- Financial planning: Choose a bank and account type that suits your financial needs to avoid unnecessary expenses.
Why are banks making this change?
This change is part of the UAE Central Bank’s regulations on personal loans. The reason for this is that it encourages financial institutions to adopt more stable and responsible banking practices. Increasing the minimum balance requirement helps banks to cover operational costs and provide better facilities to customers. This is happening not only in the UAE but in many countries around the world and thousands of banks are offering banking services to customers on such terms.
Benefits of Current Accounts in UAE
If you open this type of account, you also get many benefits, but only when you complete the minimum balance requirement:
- Free checkbook
- Free debit card No annual charges
- Free SMS service
- No limit on money transfer
- No charges on withdrawal
But it all depends on your bank. For your better guidance, I will tell you about such banks and their futures. This is an updated list that will be active after the 2025 update, while many banks have already activated it.
UAE Bank Accounts with Minimum Balance & Free Full Services
| Bank Name | Debit Card Fee | Cheque Book | SMS Alerts | ATM Withdrawals | Local Transfers |
|---|---|---|---|---|---|
| Emirates Islamic | Free | Yes | Free | Free (own ATM) | Free |
| ADIB (Islamic Bank) | Free | Yes | Free | Free (own ATM) | Free |
| Emirates NBD | Free | Yes | Free | Free (own ATM) | Free within bank |
| FAB (First Abu Dhabi) | Free | Yes | Free | Free | Free |
| Mashreq Bank | Free | Yes | Free | Free | Free |
| RAKBANK | Free | Yes | Free | Free (own ATM) | Free |
- If you go below AED 5,000, some banks may charge monthly fees (usually AED 25 to AED 100).
- All services are free if balance condition is maintained.
- These are great for salary holders or regular account users.
FAQ – Answers to your Questions
This requirement will come into effect from June 1, 2025, but some banks have already implemented it.
You will be charged a monthly fee of 25 dirhams, unless you meet the exception criteria (such as credit card or salary transfer).
Several major banks are adopting this policy, but some banks offer zero balance accounts that are exempt from this requirement.
Yes, leading banks like HSBC, ADIB, and FAB offer zero balance accounts that are reliable and convenient.
Conclusion – What Should You Do Now?
The increase in minimum balance requirements of banks is an important change that may affect you. You should have accurate and up-to-date bank information to protect yourself from additional charges. If the amount in your account is low and does not comply with the new updates and rules, you should contact your bank immediately. For more information, ask us a question in the comments section below.