Bank accounts play a crucial role as vital financial tools, empowering you to securely and effectively manage your money. They are instrumental in facilitating essential tasks like setting up a phone contract and establishing your residence. If you’re relocating to RAK, here’s how you can initiate your financial journey:
The first thing you should do is pick a bank and account type
RAK has numerous banks to cover all needs, from commercial banks to investment, industrial, and Islamic banks, where each bank has different account options that you can choose from.
Here is a list of banks located in Ras Al Khaimah:
- RAK Bank
- Dubai Islamic Bank
- Sharjah Islamic Bank
- HSBC
- Emirates Islamic Bank
- Banque Misr
- Commercial Bank of Dubai
- Emirates NBD
- Mashreq Bank
- Arab Bank
- CBI Bank
Once you’ve settled on a bank, it’s important to decide what kind of account you’d like to open. Here is an explanation of what each account offers:
- Current Account: Great for everyday transactions and transfers, they come with checkbooks, which are a necessity for issuing post-dated rent checks to your landlord. Usually, banks in RAK offer 2 kinds of current accounts, with and without salary transfers.
- Savings Accounts: A savings account usually offers higher interest rates than current accounts. However, they may limit your access to funds. This kind of account offers a fixed or variable interest rate. You can also use this account as a salary account and carry the benefit of a checkbook.
Investment Accounts: You can open an investment account by signing an agreement with the bank of your choice. These contracts run from 1 to 5 or 10 years and more. Additionally, such agreements cover the management of your funds with a minimum assured return of 3-7% or more per year. The minimum investment balances vary.
Gather the required documents
Every bank in RAK requires certain documents for you to open an account.
Here’s what you need: Your original passport and a copy of the same
- A copy of your visa page proving you’re a resident of RAK
- A salary certificate signed and stamped by your company
- Your Emirates ID card; however, if you are waiting to receive it, the bank may ask for a copy of your Emirates ID registration form.
If you are a non-resident of the UAE, you are eligible to open a savings account. The bank will give you a debit card instead of a checkbook to withdraw money. In addition, you may be asked for the following documents:
- Latest utility bill
- An original reference letter from another bank where you have an account
- The most recent 6-month personal bank statement from your country of origin or anywhere in the world
- Information on your source of incoming funds.
After collecting your documents, it’s time to either visit the bank or open your account online.
If you opt to visit the bank, you will need to schedule an appointment to meet with a bank representative. But, if you’d prefer to open your account online, you can upload all the necessary documents, and the bank will arrange a date and time for a representative to meet you at your office or home. During the online meeting, it’s essential to have your documents available.
Whether at the bank or during the online process, you will be required to complete an application form specifying the type of account you wish to open, your salary, anticipated expenses, and transfer preferences, among other details. The same application process applies to both in-person and online account openings.
After completing the application and meeting with the bank representative, the next crucial step is for the bank to review your application.
This review is essential to ensure you are fully informed about the fees, minimum balance requirements, and other relevant details. Once you have agreed to the terms and conditions of your chosen bank, they will proceed with the review and subsequently provide you with your account details.
These details typically include:
- IBAN Number: Used for international or local bank transfers.
- Account Number: Utilized for online banking, cash deposits through ATMs, etc.
- Branch Name and Location: Specify the primary branch where your account is set up.
Moreover, the bank will use a trusted third party to send you an email containing your checkbook and debit/credit card. To receive these items, it is essential to be present and have your Emirates ID on hand to accept the delivery.
Upon receiving the email, cheque-book, and cards from your selected bank, you have successfully established an account in RAK. Now, you can proceed to create an online banking profile using the bank’s online application or website, enabling you to make transfers and monitor your finances with convenience effortlessly.
Got any feedback or suggestions? We’d love to hear from you! Feel free to reach out at hello@heartofrak.com