All good things must come to an end, including your time with a particular bank account. At some point in your banking journey, you’ll inevitably have to bid farewell to your account.
Closing a bank account in the UAE may seem like a cumbersome process, especially for non-residents. However, there is typically a simple method to conclude your account and transfer or take out your money efficiently.
This comprehensive guide covers all the essential information, answering the question how to close a bank account in UAE? including the process commonly used by leading banks in Dubai and the rest of the UAE.
Required Documents for Account Closure Process in Dubai, UAE
Before initiating the account closing procedure, here are the documents that you must have with you:
- A photo ID like a valid Emirates ID or passport
- Debit and credit cards linked to your account
- Any unused or used chequebooks or cheques
- Copies of clearance letters from companies whose bills are connected to your account
- Proof of residence (in case the address has changed from the time the account was opened)
How to Close a Bank Account in Dubai, UAE?
The banks freeze the account if there is no transaction in the account for six months. So, it is better to close it by yourself. Here is a step-by-step account closure process for the UAE banks:
- Go to a bank branch in which you have an account.
- Fill in an account closure form and sign it. You have to mention basic information in the form including your name, address, account details, etc.
- Hand over all your checkbooks and cards.
- Print all of your account statements as you won’t be able to get them once the account is closed.
- The bank can only close an account with zero balance. So, you need to transfer funds from your account to another account or withdraw them.
- You may be required to submit a copy of the employer’s final settlement letter and copies of clearance letters from companies whose bills are connected to your account.
- Clear any pending loans or dues that are linked to your account such as minimum balance maintenance fees, monthly account maintenance fees, etc. Some banks also charge fees for closing accounts within six months or one year of opening them. Reach out to the banking staff to see the uncleared dues. You cannot close an account if the dues are not cleared.
- Submit the form along with the required documents.
Once everything is submitted and the amount in your account is zero, you will be given confirmation via message, call, or email about the account closure request. It will take 3 to 5 business days or up to a maximum of a week to close the account. You will also receive an account closure letter as soon as the account is closed. If not, you may reach out to your bank regarding the status of the account.
Foreigners who want to leave the UAE may need a clearance letter or no liabilities letter. They can ask their banks to provide it. For this request, you need to
- Submit a signed form for the request
- Keep the fee amount in the account
Depending on your situation, the bank branch might ask for some documents as further proof.
Things to Remember While Closing a UAE Bank Account
Here are some things that you should keep in mind when going through the account closure process in the UAE:
- Withdraw the entire account balance before closure, leaving a sufficient amount for any applicable fees.
- Include a copy of your ID proof when submitting the account closure request via email.
- When submitting your account closure request, avoid including any passwords, as they are irrelevant to the process.
- Ensure all outstanding dues are settled before closing the account. Also, make sure that you obtain official confirmation of the payment.
- Verify that no outstanding cheques are pending clearance before initiating the account closure to prevent potential issues like cheque bounce cases.
- You should get explicit official confirmation from the bank regarding the closure and keep it for future reference.
- Although debit cards and chequebooks will be deactivated, it is advisable to give them back for added security.
How to Close a Bank Account in UAE from Abroad?
To close your account in UAE, you usually need to go to the bank in person. Though some banks in the Emirates won’t close your account unless you’re physically there, it is still possible to close the account from abroad. If you can’t be in the United Arab Emirates, you can ask someone to go for you, but you’ll need to give them the authority with a power of attorney.
If that’s not possible either, you can reach out to the bank’s representatives. Explain why you can’t be there in person but want to close your account. You can call the bank from your registered mobile number or send them an email from your registered email address to make your request. Include your account name, bank account number, and bank branch details in the official email to the bank.
Some banks might prefer a faxed signed letter instead of an email. Once your request is approved, a bank representative will contact you if they need more details or documents.
After you’ve fulfilled all the conditions for closing your account, it usually takes three to five working days for the bank to complete the account closure process.
UAE Bank Account Closure Fees and Charges
Here are the account closure charges for some of the most popular banks in the UAE:
| Bank Name | Account Closure Form | Account Closure Fee |
| Emirates NBD | Closure of Account Form | AED 100 if account is closed within 6 months, No fees if it is closed after 6 months |
| ADCB | Closure of Account Form | AED 105, 0 if you close the account within 30 days |
| Emirates Islamic Bank | Closure of Account Form | AED 100 if account is closed within 1 year, No fees if it is closed after 1 year |
| Dubai Islamic Bank | NA | AED 26.5 to AED 1050, varies with account type and timeframe when account was opened |
| CBD | NA | AED 105 if you close the account in 6 months, AED 350 if it is closed within 12 months |
| FAB | Closure of Account Form | AED 150 to AED 500, varies depending on the account type and timeframe when account was opened |
| ADIB | NA | AED 100 |
| Mashreq Bank | Closure of Account Form | AED 105 if you close the account within first six months, AED 0 if it is closed after six months |
| RAKBank | Closure of Account Form | AED 200 if account is closed within first six months |
| Standard Chartered | Closure of Account Form | NA |
| HSBC | Closure of Account Form | AED 105 if you close the account within first six months |
Why Close Your UAE Bank Account?
If you’re leaving the country, you might be thinking about whether closing your bank account is required or not. It’s not a must, but here are some good reasons to consider doing so:
Avoiding Dormancy Fees:
Banks in the UAE often charge fees if your account is inactive for a long time. Closing it stops these fees from adding up.
Credit History:
Keeping your UAE account open could affect your credit history, even after you leave the country. Closing it keeps your financial record clean and free from any doubts or errors.
Security:
An open account could be risky for unauthorized access or fraud. Closing it makes sure everything is more secure.
Relocation
Whether you’re moving within the UAE or relocating internationally, closing your account is essential to manage your finances effectively.
Change in Financial Goals
As financial goals evolve, individuals might find their current bank doesn’t align with their needs. For example, you might be getting better interest rates, an online bank might fulfill your needs in a better way, the fees of the present account are very high, you want to open a joint account, etc. Closing an account can be a strategic move toward better financial management.
Dissatisfaction with Services
Poor customer service, hidden fees, or unsatisfactory banking experiences might make you search for alternatives and close your existing accounts.
How to Close Certain Types of Bank Accounts in the UAE?
Closing accounts may vary depending on the type of account you have. Here are some accounts that might need special attention:
Joint Account
If you have a joint account, your bank may require an account closure request with signatures from both account holders. Some banks may accept authorization from just one account holder. Closing a joint account online might need consent from both parties.
Child’s Account
Certain bank accounts automatically convert into regular accounts when a child turns 18. If it is not converted, you need to close the existing child account and open a new account. If the individual is of legal age, closing this type of account is similar to any other account closure.
Deceased Person’s Account
Closing the bank account of a deceased loved one can be complex. The process depends on how the deceased managed their finances, including beneficiary designations or a will. Legal requirements and documentation may vary by the Emirates, so it’s advisable to opt for legal guidance before proceeding.
Potential Challenges During Closing a Bank Account in the UAE
Several challenges may arise during the closure process for a UAE bank including the following:
Outstanding Loans or Credit
If you have outstanding loans or credit, you have to repay them before closing the account. You can consult with the bank staff to establish a repayment plan.
Joint Account Considerations
If you want to close a joint account, you need to have the consent of other account holders. Communicate with them to ensure the process goes smoothly.
Unsettled Fees
Unsettled fees can be an issue that may arise upon closing the account. Clear any pending fees or charges before closing the account to avoid complications in the future.
Get Financial Advice from RIZ & MONA CONSULTANCY
Closing your UAE bank account should not be too tricky. Most major banks in the country offer the option to close your account online or over the phone, making it convenient even if you’re not in the UAE. Use this guide to simplify the process if you’re considering closing or upgrading your account for a better deal right now.
For more complex financial matters, such as opening or closing a business account or seeking expert financial advice in the UAE, you should consider the assistance of a business consultant like RIZ & MONA CONSULTANCY. At RIZ & MONA CONSULTANCY, we specialize in helping individuals and businesses with their financial affairs in the UAE. To open an account or get the right financial advice, contact us today.
FAQs – Frequently Asked Questions
Do I need to close my bank account if I leave UAE?
It is better to close an account if you are going to leave the UAE.
How to close a UAE account from Abroad?
You can ask someone or contact the bank via email or phone call to close the account from abroad.
Can I close my UAE account online?
Physical presence in the bank branch is necessary to close the account. Some banks may allow you to close the account via email.
What happens if a UAE account is not closed?
If the account is not closed and not used for a long time like six months or less, it will be frozen or closed automatically by the bank.
