Islamabad, May 26, 2025: Starting June 1, several top banks in the UAE will enforce a higher minimum balance requirement for current accounts, raising the threshold from AED 3,000 to AED 5,000.
This significant move, tied to new UAE Central Bank regulations for personal loan-linked accounts, could lead to extra monthly charges for customers who don’t meet specific criteria. The minimum balance in UAE banks has remained unchanged for over a decade—until now.
What’s Changing and Why:
As per UAE-based publication Emarat Al Youm, at least one prominent bank has already implemented the hike, with others expected to follow suit soon. This change reflects the Central Bank’s updated guidelines designed to align banking practices with current economic dynamics and customer risk profiles. The new rules primarily affect current account holders whose accounts are linked to personal loans.
Impact on Customers:
Failing to maintain the new AED 5,000 minimum balance could cost account holders AED 25 monthly. However, there are some ways to avoid this fee. Customers are exempt if they:
- Maintain a total balance of AED 20,000 or more across all accounts with the bank
- Receive a monthly salary transfer of AED 15,000 or above
- Have a salary between AED 5,000 and AED 14,999 and hold an active credit card, loan, or overdraft facility with the bank
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Those earning below AED 5,000 and without qualifying financial products will be subject to automatic deductions. Some banks may charge higher penalties—up to AED 105 per month—depending on internal policies and account types.
Since 2011, the AED 3,000 rule has governed minimum balance requirements for personal loan-linked accounts. This upcoming revision marks the first major shift in retail banking thresholds in over 13 years. Financial analysts note that the change may push lower-income account holders to explore salary transfer accounts or bundled financial products to avoid penalties.
