Moving to Dubai, or any new city can be overwhelming, both mentally and physically. With so much to do before settling into your new home, it is advisable to get all the help you can get. Hiring a reliable moving company for your move can help make the process of moving efficient.
When you move to Dubai, you might need to switch your bank account for various reasons like limited ATM or branch access, dissatisfaction with current services, or the desire for better rates or a new salary account.
Steps to Switching Your Bank Account in Dubai
Understanding the steps involved in switching your account is crucial. ServiceMarket has come up with a simple step-by-step guide, ensuring a hassle-free switch if you are planning to change your bank account in the UAE.
1. Select a New Bank Account
So, you have made up your mind about taking your banking relationship elsewhere. The first step is to find a new current account that fits the bill. Don’t forget to review the small print before you take your pick. Carefully go over the account-related fees and charges as well as minimum balance requirements. If physical accessibility is a big concern, make sure you select a bank that has a branch and ATM close to your home or office. It would also make sense to keep an eye out for current deals and offers for new bank customers.
Your Credit Score Matters
Before switching bank accounts, it is important to think about how it could affect your credit score, especially if you plan to apply for a mortgage or other loans. Some people worry that changing banks might influence their credit score, but this is usually not true. As long as you pay off any overdrafts before switching, your credit score should stay the same. Also, some bank accounts charge fees if your balance drops below a certain amount, or they might need you to have your salary deposited regularly to get certain perks.
In the UAE, credit scores are divided into four categories – 300 to 619 is considered a bad credit score 620 to 679 is fair, and 680 to 730 is good. Those with 731 and above means that you are eligible to obtain loans, and low interest rates, and save better on loan payments.
2. Review Your Existing Account and the Payments Linked to It
Irrespective of how unhappy you are with your existing bank or how eager you are to switch banks, don’t apply to closing the bank account without doing your homework. You must keep this account running till you have reviewed it thoroughly. You have to review all the existing automated third-party payments – credit cards, loans, utility payments, subscription fees, and such – to ensure they have been successfully linked to the new account and at least one salary has been credited to the new bank account as well.
In addition to payroll deposits, check for family transfers, and direct tuition payments that may involve linked accounts or direct transfers. If you have issued any post-dated checks, you will also have to replace these with checks from the new bank account.
3. Set Up Salary-Transfer to the New Bank
The next step is to change your bank details in your employer’s records. This step is crucial in ensuring your new bank account is adequately funded before you link any payments to it or issue any checks.
4. Link Third-Party Payments to the New Bank Account
Once your new account has some money sitting in it, you can then start linking your regular payments to it. You will most likely be able to link the following through the online banking portal:
- Existing credit cards
- Telecom and utility payments (DEWA, Etisalat, Du, etc.)
- E-commerce, and digital wallets
- Subscription fees,
- Government services (e.g. Salik and utilities)
However, transferring your loan installments to the new bank may require you to go through a different process, with a bit of running around involved. The time this takes may vary from bank to bank, so make sure you account for any delays.
5. Close Your Previous Bank Account
Now coming to the final step – you can now withdraw your remaining funds from the old bank account and submit an application for account closure. The account closure process varies among banks in the UAE, with some offering it free of charge within the span of 14 to 30 days of opening a new account. While others may impose fees ranging from AED 100 to AED 1,050 depending upon the type of account and any additional formalities involved.
Before you walk away, you must attain a no-liability or no-dues certificate from the bank.
A few things to keep in mind:
- Banks in the UAE will automatically close or freeze accounts that have been inactive for six months.
- Even after closing your account, make sure to keep your debit cards for safety, in case you need them for any future transactions or verifications.
- Ensure that all outstanding dues, including loans and fees, have been fully paid before initiating the account closure process to avoid complications.
Switching your bank account can be simple if you follow the steps diligently, and fulfill all the requirements.
