All You Need to Know About Opening a Salary Account in UAE

The United Arab Emirates, being the regional economic and industrial hub, attracts a substantial workforce searching for a better lifestyle and earning. As of reports in 2018, the UAE houses over 7.4 million workers, and this figure is expected to grow in the forthcoming years. The workers in UAE can avail of their salary only through the salary accounts. Considering the same, almost all the banks in UAE offer salary accounts for convenient and timely payouts.  

Salary accounts are perhaps the most crucial bank account for working professionals. For individuals who have moved to UAE recently, it will be comforting to know that banks in UAE offer an easy account application process with lenient eligibility criteria and paperwork. The article below will guide you through the details of opening a salary account in the UAE. 

Difference Between a Salary Account and a Savings Account

From a general perspective, salary and savings accounts are similar but not the same. The bank transfers your salary to your salary account while you have to maintain funds yourself in the savings account. The purpose of a savings account is to save and grow your money, while a salary account doesn’t offer any interest or profit on your funds. 

The salary account also provides distinct features like unlimited transactions, chequebook facility, and utility bill payments like a general savings account. This makes it handy for daily transactions and withdrawals. 

Note: If the salary account remains inactive for a specified period, the bank converts it into a savings account.  

Advantages of Opening a Salary Account in UAE

Although a salary account doesn’t offer an interest/profit rate on your funds, it provides several benefits for daily transactions and payments. Some of the important benefits of opening a salary account are as follows: 

  • You don’t need to maintain a minimum account balance in your salary account. However, it depends on the banks and account services. Few banks may ask to maintain a minimum balance of AED 3000 - 5000 or the same amount to be transferred as salary every month without minimum balance requirement. 
  • The bank offers chequebook and debit card facilities to access the funds conveniently and quickly. 
  • You can also avail online banking facility to access the funds anywhere and anytime. 
  • The bank also offers international remittance on the salary account. A few banks like RAKBANK offer one free foreign transfer through SWIFT, allowing you to send money to your home country. 
  • You can avail of unlimited domestic transactions through digital banking. 
  • Higher withdrawal frequencies than a normal savings account. 

Features of Salary Accounts in UAE

The salary accounts in UAE are designed to provide ease of accessing the funds for daily expenses, and hence, they offer multiple facilities to withdraw and transfer funds. Following are the key features of the salary accounts in the UAE. 

  • Chequebook and Debit Card Facility - To provide easy access to your funds, the banks in UAE offer free chequebooks and internationally accepted debit cards. The cards usually have a higher withdrawal limit than a savings account
  • No Minimum Balance Requirements - The account holders don’t need to pay any fall below charges if their salary gets transferred into the bank account periodically. Most of the banks in the UAE require a minimum salary transfer of AED 3000 to 5000 depending on the bank. 
  • Utility Bill Payments - The salary accounts offer quick online bill payment facility without extra charges. 
  • Loan and credit card Facilities - Several banks in UAE also offer easy loan approvals through your salary account. In addition, you can also apply for credit cards showing your income slip and bank statement to avail of an advance fund.
  • Bank Statement and SMS Alert - The account holders receive monthly statements and SMS alerts for each transaction, transfer and payment on the salary account. In addition, individuals can also avail e-statement anytime and anywhere via online banking.
  • Online Banking Facility - The bank offers quick and secure online banking for easy payments and fund transfers within and outside UAE. 

Best Banks for Salary Transfer Accounts in UAE

Following is the list of best banks that offer salary account in UAE based on their services and benefits. 

Banks in UAE Salary Requirement
RAKBANK  Minimum salary transfer of AED 5,000 or more
Ajman Bank No minimum requirement
ADIB  Minimum salary transfer of AED 8,000 or more
ADCB Minimum salary transfer of AED 5,000
Standard Chartered Bank  Minimum salary transfer of AED 5,000
Emirates NBD  Minimum salary transfer of AED 5,000

Who is Eligible to Open a Salary Account in UAE?

UAE banks offer lenient eligibility criteria to open a salary account in UAE. Any of the following individuals can open a salary account in the banks in UAE. 

  • A UAE citizen/national. 
  • A UAE resident with a valid residence permit. 
  • The residents and UAE nationals must be 21 years old or above.
  • The individual must be employed in UAE. 

What are the Documents Required to Open a Salary Account in UAE? 

Applicants who satisfy the above eligibility criteria will have to furnish relevant documents to complete the salary account opening process. They need to submit the following documents. 

  • An original passport and a copy for record and validation. 
  • Emirates ID for UAE nationals and residents. 
  • Non-residents can open salary accounts using visa permits. 
  • A salary transfer letter from the employer. 
  • Payslips.
  • Labour contract/MOL print out.
  • Offer letter for probational employees. 

How to Apply for a Salary Account in UAE?

The banks in the UAE offer convenient ways to apply for bank accounts through various online and offline channels. An individual can choose any of the following methods to apply for the bank accounts.

  • Online Application - Individuals can open a salary account conveniently by visiting the official website of the bank. They will have to choose the type of salary account, fill in the personal details and subsequently upload the requisite documents. The bank representative will contact them for the further account opening process. 
  • Offline Application - Applicants may also choose to visit the nearest branch at their ease. They need to carry all the aforesaid documents and fill the account opening form as instructed by the bank representative. 
  • Application via Phone - Several banks also accept account applications through the phone. The individual needs to contact the bank customer support on the mentioned phone numbers and raise an account opening request. 

Things to Consider While Opening a Salary Account in UAE

When selecting a salary account, individuals need to consider a few factors like bank services, salary transfer criteria, etc. Following are the things to keep in mind while opening a salary account. 

  • It is important to consider the minimum salary transfer amount before applying for a salary account. Usually, the banks require a minimum salary of AED 5,000; however, few banks charge higher, and applicants must confirm before applying. 
  • Banking services like the number of ATM cash withdrawals, teller transactions and utility bill payment, chequebook and debit card facilities.
  • Check whether the bank allows foreign remittance in case you need to transfer your salary to your home country. 
  • Check for the monthly charges and other bank account fees. 
  • You may also check for the overdraft, loan and credit card facilities offered by various banks in case you want to avail of these services.

The Bottom Line

Several banks in the UAE offer conventional and customised salary account, meeting the needs of customers. The innovative salary account is not only meant for receiving your salary but also offers numerous other services. These accounts are designed to meet your daily expenses like frequent cash withdrawals and transfers. The salary accounts in UAE don’t offer interest/profit rates but compensates through the kind of services they offer.

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