Most people get a shock soon after switching a job not from their ex- employers but from their old Bank. Avoid the shock from a bank statement full of charges/fee – check all the charges and conditions with your Bank before your salary transfer stops in that account.
Here’s a checklist of important things that you need to deal with before moving on with you new assignment/job:
1. Account Status- Salary transfer account often enjoys many benefits and privileges such as:
• 0 Balance status
• Free Credit Card
• Special interest rate on loans
• Special rates for insurance
Once you quit your job, this account will get tagged as a normal account and you may lose these privileges. This means that now you may have to:
• Maintain a minimum balance in the account
• Pay Annual fee for the Credit Card
• Pay a higher rate for loans/ insurance
An account where minimum balance is not met attracts a monthly/ quarterly charge of up to AED 200. You could close a Credit Card with an annual fee and use a Free for life Credit Card instead. Check for insurance rates with your new Bank at the time of premium payment.
Finally, close the account and follow up to make sure it’s closed. It seems that Banks are more diligent at billing charges to customers than at processing an account-closure request.
In case you intend to keep the account, understand the fee and charges that apply to a regular current account and keep the minimum balance to enjoy the account facilities without any unwarranted cost.
2. Car Loans/ Personal Loans- Replace current post dated cheques (PDCs) with standing instructions from your new bank. Change of SI may entail a personal request at the nearest branch for the same and a one time charge by the Bank of AED150-200. Take a few minutes to compare your loan with the current loans at low interest rate in the market.
3. Utility Bill/Credit Card Payments- There could be many payments linked to your salary account like Credit Cards, DEWA and Etisalat/Du bills. If you have standing instructions from your account to pay these bills, just remember to change these instructions before closing the account. This does not entail any charge from the Utility companies or Bank and can be done online.
Paying interest on multiple credit cards? You can reduce the payments significantly by transferring the outstanding balance from all your Credit Cards to a single loan with the Al Khair Liabilities Settlement Program from ADIB.
We hope this will help you with a hassle free transition from the old account to your new salary account.
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