Emirates Islamic Bank is one such bank offering exclusive Islamic banking products in the UAE, with the Emirates Islamic Bank zero balance accounts being among the most preferred savings accounts in the UAE.
Based on the UAE Central Bank, there is no standard procedure to follow for bank accounts when it comes to switching jobs in the UAE. Still, you need to notify your current bank about your job change activity so that you are able to smoothly manage your existing bank account.
The UAE Central Bank introduces some standard rules when it comes to a few specific cases of job switching activity. The banks are authorised to ask you for immediate dues repayment, including your credit card bills, existing loans, mortgages, etc. if any of these events take place:
Keep reading to know what happens to your bank account in case you need to switch your job within or outside the UAE.
Here is what can happen to your salary account if you leave or switch your job.
If you do not inform your current bank account about the change or do not clear your dues on time while switching jobs, the banks in the UAE freeze your bank account. Let’s consider an example. You have an active loan with your existing bank and you did not inform them about the job switching activity. The bank may communicate with your employer someday and get to know that you do not work there anymore. Such cases can create suspicions against you and lead your bank to freeze your bank account immediately.
On the cancellation of your employment visa by the current employer, your bank will get an intimation of you leaving a job. Even if you are switching a job within the UAE, the bank may get suspicious and assume that you are going to leave the country altogether. The banks in the UAE have some set rules and policies when it comes to their borrowers leaving the country. You may get into trouble if you have not yet cleared all your dues.
The best way to fix this is to inform your bank about the change and learn about their policies to avoid any uninvited circumstances.
Here are the things you need to do when changing jobs in the UAE.
You must first check with your new employer if they accept your existing salary account. If yes, you need to inform your bank that you will continue using the same account and make the transfer smoothly.
If your new employer doesn’t accept your previous salary account, you can go to the nearest bank branch and place a request for bank account closure.
Make sure you clear all your dues, including credit card bills, loan instalments, etc. and take out all the cash from your account before you place such a request. Also, keep in mind that most banks charge an additional fee for account closure, so check about the same with the bank you are dealing with.
You may also deactivate all the auto payments such as utility and credit card bill payments, etc. before you close your bank account.
You must plan ahead to avoid complexities when switching jobs in the UAE. To avoid any complexities, you can check with your bank for the applicable policies and terms when you close or transfer your salary account to another employer.
We at Policy Bazaar aim to educate you about the whole range of features and benefits of different bank accounts. You can contact us to know about the different salary accounts that your new employer is offering you. This way, you can choose the right bank account and manage your finances more efficiently.