Saving is an important step in financial planning. One of the most preferable and secured ways of saving is definitely a bank savings account. Even though there are several banks in the UAE offering different kinds of savings accounts for their customers, there is always a dilemma while picking a particular bank. This can be cleared when you are certain about the features and benefits you require and compare properly. There are certain things to be compared between one or more banks while getting a savings account, like,
Interest Rates
The main feature and equally benefits of a savings account is the interest rate provided on the minimum balance maintained in the account. Banks offer competitive interest rates on the savings account. While choosing a savings account, it is important to compare interest rates provided by different banks in the UAE.
Initial Deposit
While opening an account, the account holder must deposit some amount initially. The initial deposit can range from AED 0 – AED 3000 or even more than that at some banks. Check with the banks before applying for the account.
Check: Top 5 Savings accounts in Dubai
Minimum Balance
Savings account holders are required to maintain a minimum balance in their accounts. The minimum balance criterion varies with the banks. It can range from AED 100 – AED 25K. There are banks that offer zero balance accounts where the account holder need not maintain any minimum balance in the account. Some zero balance account provides interest rates on the balance maintained in the account which is an advantage.
Fees and Charges
There can be various fees and charges added on a savings account. Right from account maintenance fees to the withdrawal charges. Some of the banks charge zero monthly charges on account maintenance. It is important to compare account maintenance charges, cash withdrawal fees, outward transfer fees, charges on non-maintenance of minimum balance. etc. while picking a bank.
Additional Benefits
Other than the interest rate, some banks host several benefits on their savings account. Like a free debit card, cheque book on the account. Banks also offer benefits like a limited number of outward remittances, withdrawals, etc. can be availed for free, free phone banking, online banking facilities and much more. In addition to this, some banks allow their customers to open an account in multiple currencies i.e it is not restricted to UAE dirhams. Some banks in UAE like ADCB, HSBC, etc. even offer rewards and discounts on using the free debit card provided. Check for the benefits provided by the bank while picking an account.
Maybe interested: Current Account vs Savings Account
The main purpose of a savings account is to save. So make sure you save properly and take advantage of the benefits provided on the account. Pick a bank and an account that serves your purpose rightly.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
