Types of Bank Accounts in UAE

With more than 40 banks in Dubai, the banking sector is getting stronger in the UAE. Banks in UAE like Mashreq bank offer the best premium bank accounts and the best premium current accounts to their customers.

Here are a few types of accounts available in the UAE.

Current Accounts

Current transaction accounts or fund transfers may take place on a day-to-day basis. Paid cards, cheque books and, if possible, credit cards are issued at present if you are a UAE national. Accounts can switch salaries and even be held in a number of currencies including, for example, USD, GBP, Euro, AED.

Present UAE accounts are split into regular, current and supplementary gain accounts. Best premium current accounts provide the basic functions which define current accounts as such. Present plans with supplementary benefits are existing accounts with all regular features, as well as other benefits, such as travel insurance etc. Current accounts’ added benefits differ from bank to bank.

Savings Account

Savings plans normally have better interest rates than existing accounts, but will have restricted access to funds and assume redemption penalties. Savings accounts can have a fixed or variable rate of interest. The account can be opened in many currencies and in dirhams, US dollars, euros and sterling pounds. The savings account can even act as a transition of pay, as we have already said.

Investment Account

Investment accounts usually provide higher interest rates than current or savings accounts that often have restricted or unused access to funds invested in such accounts for a specified duration. This can be inconvenient to savings portfolios if you need daily access to assets.

The investment portfolio is not seen on the customer’s current or savings account Internet banking system. It’s a bank-owned, solely bank-managed portfolio. The bank sends a quarterly excerpt from the investment account for review.

On the basis of completion of an investment arrangement with the Bank, the opening of the investment account will take place. The contract period ranges from 12 months or 5 to 10 years or longer. The contract duration can vary.

In this arrangement, a certain sum of capital is transferred into the bank-opened savings account and, in exchange, the Bank maintains the portfolio and invests in different financial instruments, enabling the Bank to gain 3 percent to 7 percent per annum. The Bank also differs from bank to bank in terms of its stance on minimum funds invested.

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