July 12, 2024

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Saving bank account opening 101: What to consider

Finance 101: How to Start Saving | Academy Bank

Banking formalities can make anyone apprehensive. The complications and the documents required can be intimidating for many. And if you’re new in the UAE or an expatriate navigating the banking system may seem complex to you. To ensure a seamless banking experience, you should know your way around a savings bank account opening

If you’re new to the UAE banking system, let us guide you through the bank account opening process. This article will inform you of the matters you need to consider. 

Things to consider to open a saving account

1. Why do I need a savings account?

A savings account is the perfect method of saving your money in the short term. In this account, you can put aside the money left over from paying all your short-term expenses and bills, such as monthly utilities and EMIs. The biggest perk is that saving accounts bear interest. Hence, you will receive a percentage against the amount you keep in your account. 

2. Do I need an amount for the initial deposit?

Several banks are offering exciting offers and deals to residents and non-residents in the UAE. But the first thing you need to consider is the initial deposit. If you’ve recently moved to the UAE, you probably don’t have enough cash for a large account deposit. Hence, consider how much you can afford to set aside for this purpose. The initial deposit usually ranges from 0 AED to 3000 AED or more. 

3. What are the basic features and charges?

Reading the fine print of the agreement for your account is crucial. It is baffling how people often sign the papers without reading the terms and conditions. Debit cards have become a staple offered by all banks. But the charges incurred for using the card vary between different banks. For example, ADCB online banking charges a nominal fee for debit card usage at non-ADCB ATMs. 

4. What is the interest rate?

The interest rate paid by banks may differ slightly. It is often decided based on a specific formula or rule. The typical interest rate provided on a savings account is between 0.3% to 0.5%. However, certain banks will provide you with competitive rates. ADCB Bank in the UAE offers a 0.10% interest rate per annum for savings accounts. 

5. What are the supplementary things I should be concerned about?

Many of the benefits and features of basic savings accounts in different banks are similar. However, you can look for specific benefits that are important for you. For example, opening a bank account online is a crucial benefit for someone who doesn’t have the time to spend a whole day on banking procedures, documentation, and so on. 

The Takeaway 

Nowadays, banking has become effortless to ensure consumers can easily access and use their accounts. Features and benefits like online banking, banking applications, and online document verifications can help you to open a bank account swiftly. Hence, conduct thorough research on the financial security of the bank, and compare the offered benefits and interest rates before opening an account. 

Now you’re all set for a savings bank account opening in any bank in the UAE!