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UAE Banks to Hike Minimum Balance to Dh5,000 from June 1

Banks in the UAE will soon require Dh5,000 as the minimum balance to avoid monthly charges, affecting low-income earners without credit cards or loans.

  • Publish date: Thursday، 22 May 2025
UAE Banks to Hike Minimum Balance to Dh5,000 from June 1

Several UAE banks are set to increase the required minimum balance in personal accounts from Dh3,000 to Dh5,000, starting June 1. This update will apply to customers who don’t hold a credit card, loan, or overdraft facility with the bank.

If this new minimum isn’t maintained, a Dh25 monthly fee will be charged. One bank has already begun implementing the policy ahead of the deadline, according to a report by Emarat Al Youm.

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Who Will Be Affected?

Customers will be charged Dh25 every month if they:

  • Don’t maintain Dh5,000 in their account

  • Earn between Dh5,000–Dh14,999 monthly and don’t have a loan, credit card, or overdraft

  • Earn less than Dh5,000 per month

For others, the monthly fee could go up to Dh100 or Dh105, depending on account type.

Who Gets Exempted?

You won’t have to pay fees if:

  • Your total balance is Dh20,000 or more

  • You transfer a salary of Dh15,000 or more

  • You earn Dh5,000–Dh14,999 monthly and have a credit card, loan, or overdraft with the bank

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Why Banks Are Doing This

Vijay Valecha, Chief Investment Officer at Century Financial, explained that higher minimum balances help banks keep more deposits and earn from account fees, which support their operating costs.

“It also encourages more customers to use credit cards and financing products,” he added.

What It Means for Low-Income Workers

Financial expert Dr. Ben Lebig warned the move could hurt workers with lower salaries, especially in service industries.

“They may need to cut back on spending or remittances just to meet the Dh5,000 minimum,” Lebig said. “Others might feel forced to apply for a loan or credit card just to avoid the charges.”

He urged banks to consider more flexible policies that won’t burden low-income earners.

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Alternative Solutions

Experts suggest some ways to avoid fees without opening a traditional account:

  • Payroll cards via exchange houses (no issuance fees, unlimited withdrawals)

  • Corporate accounts that allow prepaid salary cards for employees earning under Dh5,000

  • Digital or zero-balance accounts with no monthly fees

These options can help workers stay within budget while staying banked.

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