Banks will adjust service fees starting next March

The banks informed their customers, via text messages, of their intention to amend the fees for the services they provide as of March 1, 2025.

These banks explained that the amendment includes increasing the annual fees for some credit cards, as well as withdrawing “cash” or transferring the balance, according to the type of each card, while they kept other cards free without fees.

These banks modified the fee for replacing debit cards to become free after it was 25 dirhams for the first time, while some of them modified the fee for requesting debt certificates from 51.5 dirhams to 47.5 dirhams, reducing its value by four dirhams, and keeping the minimum balance fee at 26.5 dirhams.

Some banks also reduced the fee for withdrawing cash from an account outside the country using a direct debit card to 21 dirhams each time, while other banks provided 10 free withdrawals over a period of one year, before imposing the same fee.

According to the announced fee schedules, these banks re-feed the minimum balance for customers who transferred their salaries to other banks, and kept bank accounts without closing them.

In response, banking expert Amjad Nasr told “Emirates Today” that banking fees for individuals are determined by the Central Bank, in accordance with the personal loan system, and the established ceiling cannot be exceeded, but it can be lowered if the bank wishes to exempt its customers from them or reduce them for the purposes of marketing and attracting… More customers, according to internal policy and established plans.

Nasr continued: “Banks have the right to raise or increase the interest rate, whether on deposits or financing, but the rest of the fees are determined by the Central Bank, as it decided in 2021 the fees related to 35 services and set a ceiling for them within consumer protection standards, but it allowed the banks to increase Fees do not exceed 5%, with justification for the increase, and provided that the customer is notified 60 days before the application of the increase. The Central Bank also allowed banks to introduce other fees on the condition of obtaining prior approval. It is required from him, such as the additional services it provides to customers.

He added that the fees item constitutes about 16 to 30% of banks’ annual income, so they try to increase them from time to time, or reduce them to attract more customers, to maintain a balance in returns.

For her part, banking expert Sheikha Al-Ali said: “Banks usually review their fees annually or every two years, according to their strategies and plans for growth, and customers are usually notified more than two or three months in advance whether to reduce or increase.”

Al-Ali explained that “banks move within a narrow margin with regard to individuals, but they can increase or decrease according to their vision regarding corporate transactions. However, even the latter are subject to the conditions of competition and the desire not to neglect learners, so we find that all fees in all banks are close.”

She added: “There are a large number of banks operating in the local market and it is easy to move between them, if the customer is not satisfied with the fee or service provided,” explaining that the subject of the amendment includes providing some free or discounted services in a way that creates a balance in the total fees paid by the customer.

Sheikha Al-Ali:

. Banks move within a narrow margin with regard to individuals, but they can increase or decrease according to their vision regarding companies.

. The debit card replacement fee has become free from 25 dirhams.

. Banks reduced the fee for withdrawing cash from an account outside the country to 21 dirhams each time.