It is very important to close bank accounts before leaving the UAE. In any case, if you leave the UAE with any of your bank accounts open, you may face unnecessary fees, impact on your credit score, difficulty in recovering funds, and legal issues. Therefore, it is important to ensure that you settle all financial matters in order and close a bank account before leaving the UAE.
Leaving a bank account open can sometimes lead to legal problems, especially if your account is subject to fraudulent transactions or fraud. So try to close your bank account with the help of the bank before leaving the UAE.
Understanding UAE Banking Laws
There are certain residency requirements for maintaining a bank account in the UAE.
1) Residency Requirements:
Most banks require that the account holder be a UAE resident or have a resident visa. In case you leave the country and the residence visa is canceled, you must notify the bank, otherwise, the account may be blocked or closed.
2) Minimum balance requirements:
Each bank may have different minimum balance requirements. Savings and current accounts generally require a minimum balance to be maintained. If the account holder does not maintain the required balance, the bank may impose a monthly or annual penalty.
3) Penalties for non-compliance:
The bank may impose various penalties if you do not meet the minimum balance requirements or adhere to other account conditions. These penalties may occur every month and are automatically deducted from the account.
It is therefore important that you fully understand the bank’s terms and conditions and manage your account regularly to avoid additional penalties and financial hardship.
Steps to Close a Bank Account
There are certain steps you need to take to close a bank account in the UAE. Below is a summary of the bank account closure process:
1) Collect the necessary documents:
Keep a copy of your passport, visa, and proof of residence (such as a residence visa or ID card) before closing a bank account. You have to submit these documents to the bank. Take these necessary documents with you to the bank.
2) Contact your bank to initiate the closing process:
Contact your nearest bank branch or customer service and request them to close your account. Some banks may require you to submit a written application, while some banks also accept online applications.
3) Outstanding Loans and Balances:
Before closing a bank account, make sure that there are no outstanding debts, outstanding charges, or balances on your account. If there is any outstanding amount, pay it first so that there is no problem in closing the account.
4) Request a bank statement for your records:
Request the last bank statement for your records before closing the account. This statement may be necessary for any future financial transactions or records.
5) Confirmation of Closure:
When all the steps are completed and your account is closed, get the account closure confirmation from the bank. This confirmation can be in writing or by email, and is important for your records that your account has been formally closed.
By following these steps you can surely close your bank account effectively and without any difficulty.
Common Mistakes to Avoid
It is important to avoid common mistakes when closing a bank account. Some people make these mistakes due to which they may face any problem. Here are some common mistakes and how to avoid them:
- Forgotten Accounts: Sometimes people forget the additional accounts that they have opened for various purposes. List all accounts and make sure to close them.
- Outstanding Loans: If you have any outstanding loans or borrowings on your account, they must be paid before closing. Bad debts can hinder the account closure process.
- Insufficient Funds: Before closing the account, ensure that the account has the minimum required balance so that no additional penalty is incurred.
- Invalid Documents: Must provide valid documents such as passport, visa, and proof of residency. Incorrect or incomplete documents may cause difficulties in closing the account.
By avoiding these mistakes, you can make the account closing process easier and faster.
FAQs
Yes, some banks allow account closure online or over the phone.
Outstanding debt must be paid; Otherwise, the account will not be closed.
It usually takes 3 to 7 days, but it depends on the bank’s policy.
You must empty and return the safety deposit box.