# International bank account vs local



## BigAndyD (Apr 19, 2013)

Is there any advantage to having a local account, such as NBD, over an international account with one of the big UK banks? Has anyone had problems with their international account?


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## Stevesolar (Dec 21, 2012)

BigAndyD said:


> Is there any advantage to having a local account, such as NBD, over an international account with one of the big UK banks? Has anyone had problems with their international account?


It all depends on where you are being paid - in UAE with dirhams or in UK in pounds.

If working in UAE and being paid in dirhams, then probably better to get a local account. It is then easier to get a local debit and credit card - these have plenty of discout offers for restsurants/hotels etc. , airport lounge access, airport to home car transfers etc.
Also the local banks seem to offer good interest rates on car loans.
We have local and UK accouns but still send money back to the UK with an exchange house ( as we have found rates and commission to be better).
Cheers
Steve


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## kismatco (Oct 3, 2012)

i use mashreq bank (AED) account for my business (payments in USD / GBP) no problems so far they convert currency automatically from USD / GBP to AED ...


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## sammylou (Oct 29, 2012)

as stevesolar said much of it has to do with how you are being paid. it may also impact residency status with your home country's tax office. for example, we are canadian. if my husband were to be paid in canadian dollars into a canadian account, our revenue agency [the tax man] would likely consider that taxable income regardless of us living here. but instead, he is an employee of the middle east and is paid by them into a dirham account here in dubai. hence we have no tax obligations to canada.

if you do not want to leave your money in dubai [this can be an issue with sharia inheritance laws and your spouse/children] then simply open an offshore account, or maintain a simple savings account in your home country [which is considered "offshore" to your resident country] and transfer money back to safety.

if you are simply here for a short term [1 -2 yrs] engagement then it may not even be worth it [and you may not be able to] sever your resident ties. in which case being paid into your uk account is easiest as you may be taxed regardless.

it's all about your context. so if you can expand further we can advise more specifically. keeping in mind we are all just passing on opinion and personal experience. you should still consult a professional if you are unsure how to proceed.


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## BigAndyD (Apr 19, 2013)

Thanks for the replies everyone.

I will be paid in AED and most of my transactions will be made in AED, but it obviously takes time to set up a local account, depending on visas and the delights of local red tape. The intention is to remain in the UAE for a number of years as we want our children to be educated there, and I have a minimum 3 year arrangement with my new employer.

I will still need a UK account, as there will be a small number of long term commitments to be paid, and obviously it will be useful to keep it for visits back to the UK. Being able to transfer money back to the UK relatively cheaply a few times a year would be a bonus.

My problem is what to do in this transitional period between arriving in the UAE and being able to set up a "local" account. An international account with someone such as HSBC would appear to bridge this gap, but it has qualifying criteria that I don't currently meet.


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## saraswat (Apr 28, 2012)

Really the only thing that would delay the opening of the local bank account would be the time it takes for visa processing. Once that is done, you can have a local bank a/c opened and accessible via the branch tellers within 1-2 working days. In case the visa takes a bit of time, just have the cash handy on you and transfer it into your UK bank account via any one of the local money exchange places (Al Ansari exchange, UAE exchange etc..). 

Might just be worth it to wait it out and then get the local bank a/c opened, in my opinion ..


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## rsinner (Feb 3, 2009)

You can have a local bank account even during the "transition" period where the resident visa is being processed. Apart from other documents, get a letter from the employer that the visa is under process.
You will be able to open a savings account (rather than a current account) and you will have a debit+ATM card but no cheque book. You will have online access to your account. HSBC and Emirates NBD do this. I am sure other banks as well.


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## BigAndyD (Apr 19, 2013)

Thanks for that. My financial affairs are pretty straightforward (until now!!!), so keeping it simple works for me.


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## dbxwill (Jul 16, 2013)

Ive just moved to Dubai from the UK. I banked with HSBC in the UK and went through them to open a UAE account. It was incredibly straightforward. The best thing is that all of my accounts are linked through the HSBC personal banking website - my UK account, a Jersey sterling account and my local UAE account.


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## rsinner (Feb 3, 2009)

dbxwill said:


> Ive just moved to Dubai from the UK. I banked with HSBC in the UK and went through them to open a UAE account. It was incredibly straightforward. The best thing is that all of my accounts are linked through the HSBC personal banking website - my UK account, a Jersey sterling account and my local UAE account.


Just dont transfer money from the UAE account to the UK account. Maybe the transfer is "free" but the exchange rates they give are pathetic


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## dbxwill (Jul 16, 2013)

Thanks rsinner....any advice on how not to get ripped off is always welcome. So how do you go about transferring money out of UAE?


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## rsinner (Feb 3, 2009)

dbxwill said:


> Thanks rsinner....any advice on how not to get ripped off is always welcome. So how do you go about transferring money out of UAE?


Lots of ways - you should do a forum search for what other UK expats do. Generally I find the exchange houses to be the most competitive


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