Job Discussion Forums

aishaphyllis · Joined: 03 Mar 2009 Posts: 5 Location: USA

Hi
I just accepted HCT offer to teach in Sharjah and the documents they sent me state I have to have a bank account in UAE for direct deposit of my salary. I have lived in 6 foreign countries and always been able to keep my bank account in USA so setting up an account abroad is new for me. I was wondering if anyone had any recommendations for a bank in UAE in which my salary can be deposited but which will also allow me to transfer funds to my US bank account. I have automatic payments going out of my US bank and need my money in dollars. How does one go about funds transfers without losing an arm and a leg in the process, (currency conversion, transfer fees and all that)?
Thanks!
Phyllis

helenl · Joined: 04 Jan 2006 Posts: 1202

You will be taken to Union National Bank to open an account. Once the account is open, you can then either stay with them, or close it and open an account with another bank in the UAE of your choice (there are fees involved and you have to get a bank letter - a pain).

All banks in UAE will have the facility to make automatic transfers to a US Bank or, if you prefer, you should be able to do it yourself online.

Emirates Bank used to do it for me for AED30 each transfer.

HTH

adorabilly · Joined: 20 May 2006 Posts: 430 Location: Ras Al Khaimah

The HR person at your school should take the whole group of new teachers into the bank they use (here in RAK they use HSBC) and set you up with a bank account for direct deposit of your salary.

Most banks are very easy to deal with and helpful.

money transfers vary from bank to bank, but usually the "status" version of the accounts will allow for a monthly money transfer for free and have other benefits (including guaranteed car loans, etc) so they are worth upgrading to that service level.

You will be converting into US dollars, so you will get hosed on the conversion rate, but it is a standard amount and doesn't flux so you should be able to plan for it.

Don't worry too much about it. HR should be helping you settle in when you get here.

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

But... the DH is based on the dollar... so why would she be affected by the conversion rates? That never happened to me when I was there. Is this something new... the banks playing with the dollar conversion?

phyllis... the banks of the Gulf were doing direct salary deposits before we had even heard of such a thing in the US. Laughing

You will probably be charged at both ends for wire transfers... check with your bank in the US. To avoid them, I used to just get dollar bank checks and deposit them by mail. In 15+ years of doing this, I never had a check go missing.

Since I hated going to the banks, I only did this every few months. Hopefully with the advent of the internet, this whole process has become easier.

VS

mishmumkin · Joined: 01 Sep 2007 Posts: 929

Avoid HSBC...

mishmumkin · Joined: 01 Sep 2007 Posts: 929

Zoot · Joined: 15 Jun 2007 Posts: 408

Seconded there mishmumkin - DON'T become involved with HSBC. What you do is make your own choice of bank, take your passport with visa in it and copies of both to that bank along with your letter for the bank (which referes to any bank of your choice) and open an account. I've heard it's better to put your money in a bank that's in the Abu Dhabi emirate duirng these difficult financial times.

mccainjohn96 · Joined: 03 Dec 2008 Posts: 93

Nope. You are getting some very bad advice here. On the contrary. Tell HCT you refuse to be bullied into Union National. They have high fees and pay low interest. HSBC is a much better deal. I don't know what kind of kickback HCT is getting from Union National, but tell HCT to give you a salary tranfer letter addressed to HSBC. But don't use any bank for money transfers. Take your dirhams to a money changer like UAE Exchange for tranfers to your US bank. Lower fees and a better exchange rate.

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

Union National was original BCCI - if you ever followed banking scandals in the past. It is owned by the government which is why a government school pushes you to it. Personally I had no problems with them. My money wasn't there long enough to make much interest anyway. (not to mention that one doesn't earn much interest these days anywhere...)

One advantage of using the government bank in these economic times is that the government is covering the money. ARound the world, thousands of people lost their money when BCCI crashed... no one in the UAE lost any money.

Sorry about the conflicting advice phyllis. What you might want to do is just let them direct you to union national (or wherever) and then do a bit of research with your fellow teachers. You can always change banks in a couple months.

VS

Never Ceased To Be Amazed · Posted: Mon Mar 09, 2009 4:38 pm Post subject:

johnslat · Posted: Mon Mar 09, 2009 4:46 pm Post subject: You can bank on it

Dear NCTBA,
Provided by Google:

"Established as a Public Joint Stock Company in 1982, Union National Bank rose from the ashes of the BCCI fiasco that plagued the United Arab Emirates of which members of Abu Dhabi's ruling family owned a record almost one-quarter of the bank's total shares.

The existing branch network that was previously used by the subsidiary BCCE was revamped through a massive restructuring. As part of which, Abu Dhabi agreed to take responsibility for BCCI's losses to prevent a run on the bank.

Currently, Union National Bank is the only banking institution that is jointly owned by the Governments of Abu Dhabi and Dubai, and offers a variety of products and services which cater to a range of clientele in both the retail and corporate sectors. The bank utilizes electronic delivery channels supported by an extensive network of banking centers encompassing 43 locations across all the emirates in the country."

http://zawya.com/cm/profile.cfm/cid681973

Regards,
John

helenl · Joined: 04 Jan 2006 Posts: 1202

UNB (Union National Bank) is owned by that family of that particular Sheikh which is why HCT staff/faculty usually have their accounts opened there.

HSBC in the Gulf has a cr@p reputation as regards customer service in the Gulf - and deservedly so. However, they are the only bank, so far as I am aware, which backs up its records OFFSHORE on a daily basis. Why is this important? Because if push comes to shove in the region - you will want to access your money from someplace else.

If you are transferring your money out of the country as soon as it hits your UAE bank account, it shouldn't be an issue whether the info is backed up or not.

The dirham is pegged to the USD - that means the exchange rate does not vary. (Check www.oanda.com for the past few years) Check the various bank websites as to the wire transfer charges - a lot are fairly competitive - in the USD10 range.

BCCI is still under litigation in various financial capitals (notably London UK) and is a big embarressment to the UAE backers.

mccainjohn96 · Joined: 03 Dec 2008 Posts: 93

You have no idea what you are talking about. The dirham is pegged to the dollar on an interbank basis, but a bank can change the rate as it pleases to skim money from its retail customers. On top of that any bank will charge you twice as much for a wire transfer as a money changer. Where large sums or frequent transactions are involved you save enough to make it well worth your while to withdraw your dirhams from HSBC, walk down the street to UAE Exchange, and have them do the exchange and transfer to your bank in the USA. Get an online HSBC savings account for the highest interest rate, such as it is. No fees. Union National will give you even less interest and then charge you a fee just for letting them keep your money. They make money off all the suckers who work at HCT. Don't waste your time signing up with Union National and then switching banks later. The red tape is ungodly. Do it right the first time.

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

I arrived in Abu Dhabi just after the crash of BCCI and its main branch on the corniche looked as if it had been bombed... all the windows broken out. The story of this bank is very interesting if one has an interest in international finance and it shenanigans. It was Sheikh Z who was talked into buying it out just before it crashed... and he got left holding the bag for a mess that he didn't create. (originally a Pakistani bank)

I know a few people who lost their life savings in the branches outside of the UAE and it was even involved in a Reagan era US scandal with Clark Clifford. It is safe to say that it was the international bank of all gun runners and drug kingpins for its life. .. but we digress.

Good Luck Phyllis... pick a side or flip a coin... Laughing

VS

FatFreddieFoxx · Joined: 17 Apr 2008 Posts: 24

I'm sorry to disappoint you, but it's common knowledge in my part of the UAE that ALL the banks here are Kr@p - with a definite capital K! I have had three bank accounts with three different banks (UNB, ADCB, HSBC) during my six years here, and my experience tells me that they are just as bad as each other.

Inefficiency and incompetence are rife - on several occasions my transfers of money back home to the UK have got 'lost', only to pop up back at the bank two weeks later, but with several hefty fees deducted from the original sum. 'Customer Service' personnel have failed to carry out simple procedures with personal loans, and one 'loans broker' didn't even know what documentation he needed to authorise a car loan, then told me the wrong information, and finally rejected my application because some of the documents did not carry an official stamp!

They are infuriatingly incompetent, and refuse to apologise or take the blame, even when they are clearly in the wrong. Unfortunately you can't do without them, though.

I send my salary home via my banks' internet banking facility, and (when they don't lose the transfer) they deduct 35/- this end (used to be 80/-) and 12 quid at the other - about 20 quid in all, and the rate isn't the best. It's convenient but expensive. So maybe it's better to use an alternative route, if you can bear the queueing and have the time to waste.