Starting June 1, several banks in the UAE will increase their minimum balance requirement from AED 3,000 to AED 5,000. This change affects many residents, especially those in lower-income brackets, and is a shift from the previous regulation set by the Central Bank.

Customers who don’t maintain the AED 5,000 minimum will face a monthly fee of AED 25, unless they have a credit card, loan, or overdraft with the bank. Those with a total balance of AED 20,000 or more, or a salary transfer of AED 15,000 or above, will be exempt. Customers earning between AED 5,000 and AED 14,999 can also avoid the fee if they have a credit product linked to their account.

If none of these conditions are met, monthly fees could range from AED 25 to AED 105 depending on the account type. This policy is expected to impact low-income workers the most, potentially forcing them to cut expenses or take on financial products just to avoid penalties.

Experts suggest alternatives like payroll cards via exchange houses, prepaid salary cards, or digital bank accounts with zero-balance requirements as cost-effective ways to bypass these new charges.