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Having a savings account is essential once you start earning, as such a bank account can help you in securing your capital along with attractive interest rates. However, this usually doesn’t come for free, as financial institutions levy multiple charges on your savings account, irrespective of your chosen bank.
To find out about different charges imposed by banks on savings accounts, take a glance at this article below.
A savings account is a type of account offered by banks and credit unions to allow individuals to deposit their money in the form of savings. It is an interest-bearing account and highly reliable when it comes to storing money.
A savings account is a good option if you are looking for short-term cash or in need of emergency funds, the reason being that banks offer interest on your deposited fund with time. Moreover, individuals can usually withdraw all or most of their available cash from their savings accounts. However, keep in mind that financial institutions put restrictions on the number of withdrawals you can make in a month from this type of deposit account.
Having a savings bank account is undoubtedly beneficial for storing your hard-earned money and using it later for various purposes. However, banks charge some fees in order to maintain your existing bank accounts like the following –
Several financial institutions provide a complimentary chequebook and debit card whenever you open a savings account in any UAE-based bank. Although these come for free, banks charge specific fees on every cash withdrawal you make via debit card.
On the other hand, some banks offer a few free debit card cash withdrawals every month but levy a fee after some specific withdrawals. Banks in the UAE charge such types of fees ranging between AED 1 to AED 50.
In order to maintain your existing savings bank account, financial institutions impose monthly charges. Similarly, most banks have fixed criteria concerning minimum balance as well. In case the bank account holder fails to maintain the required minimum balance, they would be liable to pay an amount as stated by the concerned bank.
While the fees for the same vary for each bank account, they generally range between AED 25 and AED 200.
Banks usually levy charges on payment cards or for using a savings bank account. Whenever the account holder processes an electronic payment, the bank charges a specific amount on their transaction. To be aware of the exact charges, you must examine all the charges and fees imposed by your financial institution as available in the schedule of fees and charges documents.
Bank account statements can come in handy to keep track of your transactions made through a debit and credit card. You can view all your transaction details, such as the amount, time, and merchandise of your payments. Account statements are also helpful when you submit loan or credit card applications.
Additionally, you can also spot if there has been any unauthorised transaction by receiving a bank statement at the end of each month. In order to obtain the document, however, you would need to request the bank for a statement. To provide paper statements, most banks ask for a specific fee from the account holder.
This fee can easily be avoided nowadays, though, as individuals can download e-statements via their online bank accounts for free. E-statements are also being promoted in a bid to make banking more environment-friendly.
A large number of individuals from multiple countries move to the UAE for various purposes, thus making remittances common in the country. Financial institutions levy remittance charges for those who want to make any international transfer to another nation. This type of fee includes conversion and service charges.
Some banks offer free international transfers on a monthly basis, but this is valid only up to a certain extent, as they start levying the fees after a specific number of transfers. If you often make international transfers, make sure to check the remittance fee with your concerned bank.
Each bank in the UAE has a specific period up to which account holders are required to keep their bank accounts active. In case they wish to close their account within 6- 12 months, financial institutions levy some charges. Thus, while opening your account in any bank, take note to verify the charges that would apply in case you close your account within a year.
It is a requisite for every UAE national and ex-pat to go through the terms and conditions before opening a savings account in any bank. You must read and understand all the mentioned guidelines before agreeing to them. This is necessary, as you may end up paying more at the end of each month if you are unaware of the charges included in your savings account.
Most financial institutions in the UAE do not charge any fee to maintain a savings bank account. However, to avoid paying various other fees related to savings bank accounts, individuals can look out for zero balance accounts as well.
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