Savings account is not a new word. Majority of the people will be having a savings account. The only thing that a person who is intending to start savings account is the interest charges.
It is very easy to set up savings account as everything has moved to digital, the only criteria that people look for are interest rate being offered for choosing savings account. There are various charges and fees that bank might charge and its always better to be aware of these, so that it can avoided.
However, it may vary from bank to bank. Below mentioned are some of the most common savings account charges by banks in UAE:
- Minimum balance charges:
Most of the banks in UAE charge monthly fee for maintenance of savings account. Savings account generally carry a minimum balance requirement. If that isn't maintained then there may charges levied to account. Banks can charge anywhere from AED 25 to AED200 in case the account holder fails to maintain the minimum balance.
2 ATM withdrawal charges:
It is advisable not to withdraw cash from ATM of other banks other than the one on which the savings account is created. Banks charge a standard fee for cash withdrawals from ATM's owned by other banks inside and outside UAE. Normally, in UAE banks charge AED 2 for cash withdrawals from other ATM's and AED 1 for balance inquiries.
3.Account closure charges:
Almost all the banks charge their customers a fee before closing account. In UAE, banks charge around AED 100, in case account is closed within first six months or a year.
4. Account statement fees:
Bank account statement is something that almost all account holders would require at any point of time. However, majority of the banks in UAE charge around AED25- AED 30 per month to provide statement.
5. Foreign exchange fees:
These are chargeable to credit card holders in case of purchase from abroad or in a different currency. It can vary from 1 to 3 % of the transaction amount. There will also be a conversion fee by Visa or MasterCard.
6. Remittance Charges:
It is often charged on expatriates living in UAE, who make constant international fund transfers. Funds moved to Asian countries can range anywhere between AED 7 to AED 22 per transaction.
7. Standing instruction fees:
If there is a regular standing instruction or order set for payment towards utilities or loans or rents, there are charges associated with it as well. Most of the banks in UAE charge around AED 50 for setting up standing instruction.
The charges vary from bank to bank. Hence, it is important to check all these details before selecting a bank to start savings account. In case of existing account holders, these charges can be known from the bank's website. It is advisable to be aware of these charges and fees along with the rewards and benefits along with all attached terms and conditions before opening an account.