Accounts available in the UAE
Most bank accounts in the financial world, at the highest level, are segregated into two broad categories – savings and current. In United Arab Emirates too personal banking accounts are basically classified into these two sets.
What is Current Bank Account?
Current bank account is generally opened by businessmen for frequent deposits and withdrawals with the bank. It is a day-to-day use account with exceptionally high number of transactions. Current bank accounts include standard features like deposits, withdrawals and contra transactions.
Different banks offer various additional features on their current account schemes. Depending upon your individual requirements you can choose the current account that suits your way of transaction, the best.
Importance of Current Bank Account
Current bank accounts are most important for individuals and firms that deal in purchase and sale of goods and those that make frequent monetary transactions. High number of transactions via cash as well as cheque is one of the most distinct features of current bank accounts.
Features and Benefits of Current Accounts
Current bank accounts offer a host of exclusive and exciting features to customers. Although, these features and benefits vary with respect to the banking entity, certain standard features are applicable to all current accounts.
- Current bank accounts are usually opened to run the financial aspects of a business
- Generally current accounts do not offer an interest rate to the customer however, certain banks have started offering interest to customers on current accounts
- Usually, banks charge a penalty fee if a certain minimum balance is not maintained by customers in their current account
- Current accounts unlike their counterpart savings accounts do not promote the habit of saving among customers
- The main aim of current accounts is to enable businessmen carry out their business smoothly
- Current accounts do not have any restriction on the number of transactions carried out through them
- Current accounts do not have a fixed holding period like fixed deposits or insurance. Hence, these accounts have a flowing tenure
- Current accounts generally require a higher minimum balance to be maintained as compared to savings accounts
- Banks almost always allow overdraft on current accounts
Opening a Current Account in UAE
You can apply for a current account in UAE with any of the banks functioning in the country. Application for the same can be made via phone banking, online banking or visiting any of the bank branches. You can also call up the bank and request them to send a representative to your house for collecting the necessary documents.
How to choose the best Current Account in UAE?
All banking entities and financial organizations in the UAE offer various types of current accounts to their customers. Depending upon your individual requirement, you can opt for the current account that suits you the best. Also, banks in UAE offer regular current accounts as well as those which are Sharia compliant. Explained below are certain points that will enable you to choose your current account wisely.
Types of current accounts in the United Arab Emirates
- Standard Current Accounts
- Current Accounts with added benefits
- Sharia Compliant Current Accounts
Standard current accounts are those that offer those basic features that define current accounts. Like high number of transactions via cash and cheque, debit card and overdraft facility and monthly or quarterly bank statements along with online banking and phone banking access
These are current accounts that offer all the standard features as well as certain added advantages like travel insurance, roadside assistance, simple cash accounts without cheque book or ATM card, foreign currency accounts and so on. Added advantages on current accounts differ with different banks
These are current accounts that are based on the principles of Islamic banking and are Sharia compliant in their features and execution
Current accounts can thus be opened depending upon the financial requirement of customers. There are customers who want simple current accounts while there are those that want more out of their transaction accounts.
Top Current Accounts in the UAE
All banks in the United Arab Emirates, indigenous or foreign, offer current account schemes to their customers. Here is a list of top current accounts in the United Arab Emirates.
- Noor Bank Current Account
- Emirates NBD Standard Current Account
- NBAD One Account
- Dubai Islamic Bank Al Islami Current Account
- HSBC Premier
This is a great current account scheme from Noor Bank. This current account requires a low monthly balance and can be opened in different currencies. You get online banking, phone banking and SMS alerts access as part of the Noor Bank current account. It is a standard and simple current account scheme which has no other hassles attached.
Emirates NBD Standard current account comes with a low maintenance balance and free cheque book and international debit card. This account can be opened in multiple currencies and a penalty fee is charged if the balance falls below the required balance amount.
NBAD One account is a great current account that offers extensive free life insurance that equals twice the credit balance in the account. Other features of this current account are standard current account features like cheque, overdraft and online banking facility.
An ideal account for people who are looking for a Sharia compliant current account. This account offers free bill payment facility over and above the standard current account features. Minimum balance required is low, free cheque book, debit card and electronic banking are some of the key highlights of this current account from Dubai Islamic Bank.
The HSBC Premier current account requires a slightly higher account balance to be maintained but in the form of deposits and other investments with the bank. It offers great features like a dedicated relationship manager, account opening in various currencies and free global account view.
Frequently Asked Questions - FAQs
- Who can open a current account?
- Which bank should I open my current account with?
- Am I required to maintain a minimum balance in my current account?
- Does a current account offer interest on the account deposit?
- Can current accounts be accessed online?
- How can I open a current account in the UAE if I am not a resident of the UAE?
Almost any customer can open a current account, though, customers with bad credit history might find it difficult to open a current account.
The bank and the subsequent current account you choose depend upon your particular financial requirements. So it is best to first research all your options and then decide on the one that suits you the best.
Yes. Almost all banks require customers to maintain a minimum balance in their current accounts. This amount depends on the current account scheme and the issuing bank.
No. Generally, current accounts do not offer any interest on the deposits maintained.
Yes. Most banks offer online banking feature with their current account schemes.
You can open a current account in the UAE only if you have a resident visa for the country.