UAE Banking Hidden Fees: What to Avoid in 2026

Why UAE banks still surprise expats with fees in 2026

Most salary accounts look free until you miss a minimum balance or write a cheque that bounces. The Central Bank caps some charges, yet each bank sets its own schedule. Checking the latest tariff booklet before you open an account saves hundreds of dirhams a year.

Minimum balance penalties

Every major bank lists a required average monthly balance. If your account falls below the threshold, a monthly fee appears automatically. Typical amounts range from AED 25 to AED 100. Salary accounts often waive the requirement, but only while your employer continues the transfer. Once you change jobs, confirm the new balance rule within 30 days.

Account closure fees

Closing an account within the first six months usually costs AED 100. After that window, most banks drop the fee, yet some still charge AED 50 for an early exit. You must settle any overdraft or card outstanding before the bank will issue the closure letter required by ICP for visa cancellation.

Foreign transaction fees

When you pay in a currency other than AED, banks add 2.5 percent to 3.5 percent plus a flat processing charge of AED 8 to AED 12. Online cards marketed as “zero foreign fees” still pass on the 1 percent network fee. Always check the tariff sheet for the exact wording before you travel.

Cheque bounce charges

A returned cheque costs the drawer AED 300 for the first instance and AED 500 for each repeat within 12 months. The payee’s bank may also levy AED 100. Under 2026 rules, three bounces in a year can trigger a temporary block on issuing new cheques. Keep a buffer of at least AED 500 above the cheque value to avoid the penalty.

How to compare accounts before you sign

• Download the current Service and Price Guide from the bank website and search for “minimum balance” and “returned cheque.”
• Ask whether the salary-transfer waiver stays active during unpaid leave or job transitions.
• Request the exact foreign-transaction percentage and any monthly cap on those fees.
• Confirm the account-closure notice period, usually 14 days, and the cost of obtaining a liability certificate.

Practical steps to limit surprises

Set up an automatic AED 500 top-up from your salary account to a secondary savings account that earns a small return. This buffer covers unexpected fees and maintains the minimum balance. Review your statements each month and flag any charge above AED 25. Banks must reverse unjustified fees within 10 working days if you raise the issue in writing.

Ask Tovi for more

Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →

Got more UAE questions?

Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →