🧾 How to avoid common UAE bank fees in 2025

Kacper Duda
Nov 12
4 min read

Ever wondered where your money disappears between paydays? Part of it goes to rent, part to groceries, and a small part to quiet banking fees that never make a sound.

After reviewing the fee schedules of seven UAE banks, we realised the numbers barely differ (they have largely been standardised by the Central Bank). The only real variable is how often you trigger them.

Read on to find out:

The most common everyday fees most people still pay
How to stop the “fee factory” from running on your account
In the news - Freelancers face tougher visa renewal checks

The classic traps

These are the ones that catch most UAE account holders. They are small, automatic, and completely avoidable once you know what to look for.

1. The fall-below fee

If your average monthly balance drops below AED 3,000 to AED 5,000 on a basic current account, you will usually pay AED 26.25 per month.

For premium accounts, both the minimum balance and penalty rise sharply. Think AED 15,000 to AED 50,000 min. balance requirements with fall-below fees up to 10x higher than on basic accounts.

How to avoid it:

Keep a small buffer (AED 500 or so) above the minimum.
If your salary is credited into the account, make sure it is marked as a salary transfer since those are exempt.
If you consistently fall short, switch to a zero-fee account instead of paying the fee each month.

2. The AED 2.10 ATM tax

Use another bank’s ATM and you will pay AED 2.10 per withdrawal within the UAE. Withdraw abroad, and that jumps to more than AED 21, plus a currency markup.

It does not sound like much, but four cross-bank cash withdrawals a month will quietly cost you more than AED 100 a year.

How to avoid it:

Use your own bank’s ATMs wherever possible.
Withdraw slightly larger amounts less often.
Check your statement for “ATM Switch” or “UAE FTS” entries. Those show when the fee applies.

3. In-branch transfer fees

Digital local AED transfers are free almost everywhere. But if you make a local AED transfer at a branch, expect a charge of around AED 5.25.

It is a small cost for using staff time instead of the app, yet it adds up quickly for frequent branch users.

How to avoid it:

Make transfers through online or mobile banking whenever possible.
If you must visit a branch, group multiple payments to the same recipient into one transaction.

4. The paperwork penalty

A stamped statement or liability letter typically costs AED 52.50 or more.

It is an old-world process that still commands a modern fee, often higher than the cost of printing.

How to avoid it:

Download and keep digital statements, which most institutions now accept for visa and rental purposes.
Only request physical documents when strictly required, such as for government or legal applications.

5. The “lost card” charge

Lose or damage your debit card and a replacement will cost AED 26.25.

Even if the new card is mailed to you, the postage is usually included in the same fee.

How to avoid it:

Use your bank’s app to freeze or unfreeze cards if misplaced temporarily.
If your card stops working due to wear or chip issues, request a replacement as a technical fault since many banks waive that fee.

6. The bounced cheque fee

Bounce a cheque due to insufficient funds and you will be charged AED 105.

It is one of the few penalties that has not changed in years and it is identical across most banks.

How to avoid it:

Keep a small cushion in your account before any scheduled cheque clearings.
If you issue post-dated cheques, track your balance closely as due dates approach.

The premium advantage

Many of these fees disappear once you qualify for an advanced or premium banking tier. Higher-income customers often enjoy:

Free cheque books
Free transfers and card replacements
Priority service for paperwork

If you meet the eligibility requirements, it is worth checking whether you can upgrade. At no extra cost to you, you could be saving yourself avoidable fees.

Smart banking, not fee banking

When we compared seven banks, the numbers told a clear story. Everyday fees are nearly identical because the Central Bank has standardised most of them. That levels the playing field. The only thing left to optimise is how you bank.

Those who get the best value are not chasing new offers every few months. They simply manage their accounts in a way that avoids unnecessary fees.

The bottom line:

You cannot escape every charge, but you can make most of them irrelevant.

Smart banking is not about changing banks. It is about changing habits.

In the news - Freelancers face tougher visa renewal checks

Freelancers in the UAE are facing tighter checks on both new applications and renewals of their residence permits. Authorities are now asking for clearer proof of income, verified client contracts, and recent bank statements before issuing or extending freelance visas.

The move aims to ensure that licence holders are genuinely active and financially self-sufficient, rather than using the permit as a low-cost residency option. Those with inconsistent income or limited work history may need to provide additional evidence of expertise or client activity.

If you’re planning to apply or renew soon, it’s best to gather at least six months of transaction history and written client agreements in advance. Read the full story on Gulf News.

Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.