Home » Cashless Payments Knowledge Hub » How Zero Balance Accounts Help New Expats Settle in the UAE
When you move to the UAE, you’ll need to consider a few things. You may be looking for new accommodation, managing day-to-day expenses, setting up salary disbursement options, and exploring remittance options to send money home.
With multiple account management factors to track, managing your spending and any account balance requirements is another consideration for new arrivals.
This is where a zero-balance option can help, as it removes the requirement to maintain a specified minimum account balance and gives you more flexibility in managing your available funds.
In this article, we will discuss what a zero-balance account is, how it might benefit you as a new arrival, what factors to consider before choosing one, and how Payit can support your financial management needs in the UAE.
A zero-balance account does not require you to maintain a minimum account balance. However, providers can offer different conditions, so review the details before you open an account.
It is also important to distinguish between zero minimum account balance and salary requirements, and account-keeping or service charges – these do not necessarily cancel each other out and depend on the provider.
A zero-balance account should also not be conflated with a digital wallet.
A digital wallet is a separate type of financial service that may allow users to hold, send and receive funds digitally, depending on the services offered. [1]
This means that new arrivals considering financial services should distinguish between a bank account and a digital wallet and choose the option that best fits their needs. The services, functionality and eligibility requirements can differ, so it is important to understand which option suits your needs.
The first few months in the UAE can involve several expenses competing for their available funds. You may need to allocate money towards accommodation, transport, groceries and other everyday needs while getting used to your new income and spending patterns.
Not having to maintain a specified minimum balance may give you more flexibility in deciding how to use your available funds. It does not, however, reduce the actual cost of living or remove other account charges.
A new expat may still be working out salary dates, regular payments, monthly expenses and money-transfer routines. If you are considering whether a zero-balance salary account could suit your circumstances, you can also read 5 signs you need a zero-balance salary account in the UAE.
A zero-balance account can support your everyday needs as you settle in.
With a zero-balance account, you can use your funds for everyday needs without maintaining a minimum account balance.
Check whether the account supports salary payments and any applicable IBAN, WPS, salary or eligibility requirements. The UAE’s Wage Protection System (WPS) is an electronic system used to oversee the payment of workers’ wages. [2]
For many expats, sending money home is an essential part of their financial management. If you plan to make international transfers, check the applicable exchange rates, transfer fees and transfer limits for your destination.
Note that the amount your recipient receives depends on the exchange rate and transfer fees for the transaction. Take this into account when you make the transfer.
Digital financial management can help with your everyday needs. When considering a digital account, examine how you can access and use the financial management tools it provides. Depending on the account, you may be able to make payments, view and manage transactions, and access other tools and features. These benefits and the requirements to access them depend on the provider.
Check whether there are charges for transfers, withdrawals, specific payment services or other transactions. A zero minimum balance does not necessarily mean zero fees.
Before you open an account with a provider, ensure that you meet its eligibility requirements. Depending on the provider and account type, you may need to meet age, residency, employment, salary, or other requirements before you can open an account. Make sure you understand the account requirements before you apply.
Consider whether the provider supports the services you need, such as salary payments, everyday payments, or money transfers.
Some accounts may limit your payments, withdrawals, transfers, or the amount of money you can hold in your local or international account. Examine any limits that may apply to your intended transactions before you open an account, or contact the provider for more information.
Consider how you can manage an account and what support is available in case of a problem. Depending on the provider you choose, you may need to verify your identity before accessing certain account features. It is critical to check how you can contact the customer service in case of an issue with your account or transactions.
Payit Account has no minimum-balance requirement and allows eligible users to hold, send and receive funds. For eligible users, this can provide flexibility as they settle into the UAE. Identity verification requirements also apply, and users may need to provide relevant identification documents, such as an Emirates ID where applicable.
Eligible users may also be able to receive their salary through a Plus Account, subject to the applicable eligibility requirements and Payit Terms and Conditions. Salary functionality should therefore be considered separately from the general Payit Account.
Explore Payit and see which available services fit your everyday financial needs.
A zero-balance account can benefit new arrivals by giving them greater flexibility as they settle in the UAE – they do not have to maintain a specific minimum account balance.
However, when choosing an account, remember that a zero minimum balance is only one factor to consider – examine the eligibility requirements, fees and charges, features, and other factors before choosing an account. You can examine the services offered by Payit and choose those that best suit your financial management needs.
1. Can I open a zero-balance account immediately after moving to the UAE?
It depends on the provider’s eligibility and identity-verification requirements. Check whether you meet its UAE residency and identification requirements before applying
2. Do I need an Emirates ID to open a zero-balance account in the UAE?
Requirements vary by provider and product. Financial institutions must identify and verify customers using reliable, independent sources, which can include government-issued identification. [3]
3. Can I open a zero-balance account before receiving my first salary in the UAE?
This depends on the provider and account type. A minimum-salary requirement may be separate from a minimum-balance requirement, so check the specific eligibility terms.
4. What happens if I leave my zero-balance account empty for a long time?
The effect depends on the provider’s terms. Check whether there are inactivity conditions, applicable fees or other account requirements.
5. Can my employer pay my salary into a zero-balance account?
Only if the account supports salary payments and you meet the relevant eligibility and salary-payment requirements. WPS arrangements also depend on the employer and applicable UAE requirements. [2]
6. Can I transfer money from a zero-balance account to my home country?
Some accounts support international transfers, while others may not. Check supported destinations, fees, exchange rates and transfer limits before sending money.
7. Can I transfer money from Payit to a UAE bank account?
Payit supports certain local transfer services, subject to the applicable account terms, fees and limits. Check the current available options in the Payit app.
8. Can I continue using Payit if my employment status changes?
Payit and Payit Plus have different eligibility and functionality. Check the applicable Payit and Payit Plus terms to understand how a change in employment status may affect available services.