This document provides information about using banking products for your benefit. It discusses credit cards, including their features, dos and don'ts, variants, and how to use them to your benefit. It also covers personal loans, their features, dos and don'ts, variants, and how to use them for your benefit. The document aims to educate people on different banking products and how to maximize savings and benefits while avoiding unnecessary expenses.

1. Banking
PRODUCTS
Use them For your Benefit
Parag Tikekar
ParagTikekar@Yahoo.com
ForrYourrBenefit@Gmail.com
Cell/ Whatsapp:
+97150- 5785927

2. Reality of Life in the UAE
 Tax-Free lifestyle, or is it?!
 Very comfortable & safe environment
 Lots of options to spend money!
 Can we really save money?
 How can we live an enjoyable life & at the same time, avoid
unnecessary expenses?

3. What will not be covered
 We will generally not talk about any specific Bank‟s products,
unless it is required to give relevant examples
 No specific individual cases will be discussed (e.g., should I
take a Credit Card from XYZ Bank will not be entertained),
rather general queries will be answered
 No details of any Banks products will be discussed, unless
required
 No particular Bank products will be promoted

4. Introduction
 Make your money work harder
 “Money saved is money earned”: Earn 3% per month or 36%
per annum (minimum), while continuing your usual expenses!!!
 Or, earn minimum of AED 500 pm or AED 6,000 pa using
Banking Products to your Benefit!
 Detailed discussion of different personal Banking products
available to help you choose the product that best suits your
requirements as well as maximize your savings & benefits.
 For each Banking product, will cover the following details:
 What is the Product & its features?
 Do‟s & Don‟ts
 What other variants are there of this Product.
 How to Use this Product for your Benefit
 General questions will be answered.

5. Credit Cards (CC)
• Features
• Do’s & Don’ts
• Variants
• For Your Benefit
• Bonus Section!

6. Credit Cards- Features
 Credit cards are plastic cards issued by most Retail Banks that
can be used to conveniently pay for your expenses.
 Banks will generally give you 1 or 2 x salary as a credit limit.
 Most of the credit cards are either Visa cards or Master cards,
though some Banks here also issue JCB cards.
 Banks issue different types of credit cards (Silver or Gold or
Titanium or Platinum) depending on your salary or credit limit.
 Can also be used to make online purchases.
 Offer a convenient means to pay for your purchases.
Convenient way of paying for expenses while abroad.
 Most Banks will ask you for a security cheque to cover the limit.
 Banks have different loyalty programs associated with their
credit cards with special features and benefits (e.g., loyalty
points, cash back, discounts on restaurants, air miles, etc.).

7. Credit Cards- Features (contd…)
 There are higher-end / Premier Credit Cards also available in
the market: E.g., Platinum, Visa Infinite, Signature. These Credit
Cards gives premium benefits, e.g., Limousine Services, Valet
Parking, Airport Lounge Access, No Limit / High Spend Limits,
etc.
 Multiple means of repaying your CC bill:-
 Through Salary Transfer account – most preferable
 Through Cash Deposit Machines / ATMs
 Through Exchange Houses
 Through some Supermarkets

8. Credit Cards- Do’s
 Take a credit card from a Bank where you do not have to pay
any annual fee.
 If, however, you are getting an attractive gift that you would
otherwise have bought, worth more than the annual fee, it is
fine to pay the fee.
 Some Banks also charge a monthly fee, so do be very careful
before taking a credit card.
 Do remember that credit cards charge a minimum monthly
interest rate of about 3% per month on unpaid balances.
 Do read all applicable T&Cs & all documentation you sign.
 Do use only for purchases of essential items & where you can
pay at least minimum 5% of monthly statement balance.
 If you are using your credit card for purchasing items on the
Internet, make sure the website is a secure website.

9. Credit Cards- Do’s (Contd…)
 Keep track of all your purchases through your credit card. CC
spending is an excellent way of tracking your spends!
 When you receive your statement check for its accuracy.
 Make sure you pay the full total outstanding amount or an
amount as close to the total outstanding amount as possible.
 In any case, make sure you pay more than the minimum
payment as mentioned in the statement.
 Moreover, if you find you are unable to pay total outstanding
amount, this means you should not be using your card for
future purchases, since you will get into a debt-trap.
 Make your monthly card payment through a direct debit of
your current/ savings account (through Internet Banking) or
through a cash deposit machine & do this at least 3 days
before your last payment date.

10. Credit Cards- Do’s (Contd…)
 Ideally, only take a credit card from a Bank that has these
features and where your monthly salary is transferred.
 Avoid paying through a cheque, since cheques might take
time to be cleared, resulting in avoidable late fees /charges.
 Keep all card usage receipts for at least 2 months after which
dispose them off safely such that they cannot be retrieved by
anybody else, if possible, shred them.
 Keep only 2 or 3 credit cards and only use 1 card for your
regular shopping with the other cards kept at home in a safe
place for any emergency.
 Whenever you cancel or close a Bank‟s credit card, make
sure you take a no-liability letter from that Bank & also get your
security cheque back.

11. Credit Cards- Dont’s
 Do not use your card to pay for luxury items (e.g., a holiday or
a high-end TV or laptop) or items which cost a high amount.
 Remember, cards must not be used for long-term financing.
 Do not use more than 1 card for your different purchases,
because then you might lose control of your spending.
 Do not withdraw cash using your credit card.
 Do not use more than 30-40% of your credit card limit.
 Do not use your credit card to withdraw cash to invest in some
„investment scheme‟ or some other business.
 Do not use your credit card for making impulsive purchases.
 Do not get into the habit of making minimum repayments.
 Do not miss your payment due date.

12. Cards- Variants
 Affinity Cards (e.g., Supermarket, Schools, Cinemas).
 Balance Transfer Programs
 Easy Installment Plans
 Credit Card cheques
 Internet Shopping Cards
 Supplementary Cards
 Debit Cards
 Prepaid Cards

13. Use Credit Cards For Your Benefit
 Large Purchases: After Statement date.
 Determine which Loyalty Program is suitable for you (e.g.,
vouchers or cash back or air miles).
 Understand the Loyalty Program eligibility & conditions & do
your spends well before statement date
 Check if your Loyalty Points have an expiry date.
 Make sure your Bank sends you sms alerts for CC transactions
 Online access to your Credit Card transactions

14. Use Credit Cards For Your Benefit
(Contd…)
 Round off payments to the higher amount
 Inform your Bank when you plan to use your Cards overseas.
 Check all Insurances that you are automatically enrolled into
(e.g., Travel, Purchase Protection, Unemployment, Accident).
 Do not use your Card if spending going out of control.

15. Bonus Section: Reward Points
 Is it slab-based?
 CC Statement Cycle / Calendar Month?
 Upper limit?
 Any conditions…what if full payment or late payment?
 Foreign Spend?
 Supplementary card?
 Expiry Date?
 How soon can redemption happen?
 Enrollment fee?
 Applicable for Online/ IVR/ Utility Bills?

16. Personal Loans (PLs)
• Features
• Do’s & Don’ts
• Variants
• For Your Benefit

17. Personal Loans- Features
 Personal Loans are loans given by Banks against the
borrower‟s salary transferred every month. (Some Banks also
give loans without requiring for a salary transfer- Smart Loans).
 Can be repaid over 4 years /more (varies by Bank) by monthly
installments, & interest rate is usually charged on reducing
balance basis (i.e., on o/s balance).
 Associated processing fee, insurance fee & possibly other
charges as well (varying by Bank).
 Convenient to pay for large asset purchases, e.g., property
back home or some large cash requirement, e.g., college fees
or emergency hospital expenses.
 Most Banks will ask you for a security cheque, so be very
careful that you pay the monthly installments on time.

18. Personal Loans- Do’s
 Take a PL only if you need to necessarily make a large
purchase & if your salary or savings are not sufficient for that.
 Ideally, if you take a PL to purchase a property back home,
you should be able / willing to liquidate that asset in case you
are unable to repay your loan (possibly due to a loss of job or
any other circumstance).
 Shop around across different Banks before taking a PL, to get
the best possible interest rate & lowest possible fees.
 Take a PL that offers Credit Life Insurance facility as well,
because then if something unforeseen happens to the
borrower, the dependents are not liable to settle o/s.
 Do check what your monthly EMI will be & only take the PL if
you are comfortable with the EMI amount being deducted
from your monthly salary every month.

19. Personal Loans- Do’s (contd…)
 Also, choose the tenure carefully & do not go in for a long
tenure loan, since you will have to keep repaying till that
tenure, which could become a burden in future.
 Do read all applicable T&Cs & all documentation that you
sign before taking the loan.
 If anything is unclear, ask the Bank Sales Staff & only apply if
you are fully satisfied that the product is right for you & if you
feel comfortable.

20. Personal Loans- Dont’s
 Do not take a PL to pay for a new car (you can take a Car
Loan for that).
 Do not go for a very high tenure PL, since then you will have
the debt burden over a longer period.
 Do not try to early settle your PL. If you get a huge cash
amount (e.g., a huge bonus or winning a lottery- Congrats!),
better to invest it in a FD & not pre-pay your loan, since most
Banks charge an Early Settlement Fee for the same.

21. Personal Loans- Variants
 Smart Loans – Salary Transfer not required
Use Personal Loans For Your
Benefit
 Use P Loans only if you have to purchase a property back
home. Though, in this case also, be sure to properly study the
property you are planning to purchase & be ready to
liquidate the property to settle your PL in case of any
unforeseen event.

22. Auto Loans (ALs)
• Features
• Do’s & Don’ts
• Variants
• For Your Benefit

23. Auto Loans- Features
 Auto Loans / Car Loans, as the name suggests, are given to
Customers to purchase a car. ALs are given for both new &
used cars.
 Most of the Auto Loans are offered at Car Dealer showroom,
by the different Bank Staff present there.
 Customers can also avail of Auto Loans by applying through
the Bank Branch where they have an account.
 ALs are granted based on a credit assessment of the
Customer by the Bank & in most cases, Customers also have to
make a down-payment (up to 80% of car value).
 Can be repaid over 4 years or more (by Bank) through
monthly installments, & a flat interest rate is usually charged
 ALs might also have an associated processing fee, insurance
fee & possibly other charges as well (varying by Bank).

24. Auto Loans- Features (contd…)
 Monthly installments have to be paid to the Bank to repay the
AL & these installments can either be paid through a current /
savings account through a monthly standing instruction or
through PDCs for each installment amount every month.
 Some Banks bundle additional products with their ALs (e.g., a
credit card or a parking card or a servicing offer or car
insurance or registration, etc.).
 Most Banks will ask you for a security cheque to cover the loan
amount, so be very careful that you pay the monthly
installments on time.

25. Auto Loans- Do’s
 Shop around across different Banks before taking an AL.
 Though, if the pricing is not very different, it is more convenient
to take an AL from the Bank to which your salary is transferred,
since this way you can conveniently pay the monthly
installment, rather than having to fill out 48 or more PDCs.
 Do check what your monthly EMI will be & only take the Loan
if you are comfortable with the EMI amount being deducted
from your monthly salary every month.
 Also, choose the tenure carefully & do not go in for a long
tenure loan, since you will have to keep repaying till that
tenure, which could become a burden in future.
 If the burden seems to be high for you, consider going in for a
lower price car.
 Remember your car also has to be insured! Check if your Bank
has a car insurance offer, along with the car loan.

26. Auto Loans- Dont’s
 Do not use an Auto Loan to purchase a very high-value car
that you cannot normally afford to buy.
 Avoid buying cars that have high depreciation rates in the
initial years.

27. Auto Loans- Variants
 Islamic Auto Loans: Islamic Banks offer a different variant to
the Auto Loans offered by other commercial Banks. Do read
their T&Cs carefully, before taking a loan.
Use A Loans For Your Benefit
 Even if you have the money to buy your car (Congrats!), still it
is better to take an auto loan and instead invest your own
money in some other investment product

28. Current Accounts/
Saving Accounts (CA/SA)
• Features
• Do’s & Don’ts
• Variants
• For Your Benefit

29. CA/SA- Features
 Current / Savings accounts are transaction accounts that you
can open in a Bank where your salary will be transferred or
where you would like to keep your money.
 Current accounts offer cheque books, but normally do not
pay any interest. Savings accounts do not give a cheque
book, but they do pay an interest.
 For opening a Current account, a valid UAE residence visa is
required, whereas a Savings account can not only be opened
if you have a Residence visa but a Visit Visa as well.
 You can access your money through ATM/ Debit cards & also
through Branch tellers. (Most Banks have a restriction on the
number of free teller transactions you can do in a month).
 Most Debit cards can also be used for POS (point of sale)
purchases at merchants, though here, unlike in credit cards,
the money is immediately deducted from your account.

30. CA/SA- Features (Contd…)
 Various transactions (e.g., bill payments, account-to-account
transfers, remittances, etc.) can also be done through Internet
Banking.
 Banks might also grant you an overdraft facility on your CA if
you transfer your salary (subject to you applying for the same
& satisfying the Banks credit criteria). Overdraft limits can be 1
time or 2 X salary or more. Overdrafts typically carry a very
high interest rate & should only be used in cases of an
emergency.

31. CA/SA- Do’s
 Read all applicable T&Cs & clarify any doubts with Bank Staff.
 Keep your ATM card PIN numbers and Internet Banking
passwords safely and do not share them with anyone.
 Store your cheque books in a safe place.
 Ensure that you have sufficient funds in your current account
when your cheque is going to be presented and your cheque
must not bounce under any circumstances.
 If you find your spending is going out of control with your
credit cards, do use your Debit cards or cash while you shop.
 Check with your Bank whether a minimum balance has to be
maintained (usually AED 3,000 or a salary transfer is required) &
ensure you meet this requirement, else a fee will be charged.
 Do subscribe to SMS banking so you can receive SMS alerts on
transactions done in your accounts.

32. CA/SA- Dont’s
 Do not open many current accounts with different Banks,
since then you will have to maintain a minimum balance in all
these accounts (unless, of course, you have a lot of money, in
which case Congrats!).
 Do not use Branch tellers for withdrawing your cash (unless you
are withdrawing large amounts). It is better to utilize ATM
machines for small cash withdrawals.
 Do not keep your account idle for more than 6 months (i.e.,
without doing any transactions), because then your Bank will
classify your Account as dormant. Reactivating the Account
might incur a fee & a visit to your Branch.

33. CA/SA- Variants
 Packaged accounts: Some Banks offer added features to their
current accounts (e.g., insurance cover or roadside assistance
or an interest is paid, etc.). Usually these added features come
with a monthly fee. Be sure to completely understand all the
benefits of a packaged account & only take this account, if
you feel it will be useful for you.
 Online accounts: these are usually savings accounts that can
be opened via Internet Banking. They offer an interest rate
that is higher than a normal savings account, but they allow
limited cash withdrawals & can generally be access through
Internet Banking only. Some Banks give different interest rates
for different balance amounts that you hold with them. You
can park your excess funds in these accounts to earn a higher
interest than a normal savings account. Please carefully study
the T&Cs before opening these accounts.

34. Use CA/SA For Your Benefit
 These accounts are a must for you to keep your money in.
 Cheques can be used for a few payments, related to house
rent or car loan installments.
 Debit cards can be used for merchant purchases or for
withdrawing your cash.
 Save your excess money in Savings accounts or Online Savings
accounts to earn interest.

35. Fixed Deposits (FDs)
• Features
• Do’s & Don’ts
• Variants
• For Your Benefit
• Bonus Section!

36. Fixed Deposits- Features
 FDs are products wherein you put a certain minimum amount
for a certain minimum period of time & earn an interest.
 Usually Banks require a minimum of AED 10,000 for a Fixed
Deposit and for a minimum tenure of 7 days.
 Interest rates are mentioned on most Banks websites and
these can change daily.
 Once a Fixed Deposit is booked for a specific tenure, the
interest rate will remain fixed for that tenure.
 After the tenure is completed, Fixed Deposits are normally
renewed for the same period of time at the prevailing interest
rate at that time (do check the applicable T&Cs, as always).

37. Fixed Deposits- Do’s & Don’t’s
Do’s:-
 Open a Fixed Deposit only if you have the required minimum
balance and you can do without it for the complete tenure.
 Open a FD with a Bank where you have a transaction
account, so you can easily move and access your funds.
 Use a Fixed Deposit as a convenient way to save your money.
 Ensure that you manage your FD renewals, i.e., around the
renewal date, inform your Bank whether you would like to
renew the deposit or add more money, or credit the interest
to a transaction account & renew the deposit, etc.
Dont’s:-
 As far as possible, do not break a FD before the tenure is
completed, since that will invite a penalty in the interest rate.

38. FDs- Variants
 Recurring Deposits: In these deposits, you put in a small
amount every month for a fixed tenure, e.g., AED 500 per
month for 12 months and get a fixed interest rate.
 Unfixed Fixed Deposits: they allow some flexibility in
withdrawing cash, but be sure to check on the applicable
terms and conditions.
 Multi-currency Deposits: Most Banks offer Deposits in various
currencies, e.g., US$, Euro, GBP, JPY, etc.
Use FDs For Your Benefit
 Save your excess money (which you will not need for a certain
period of time) in Fixed Deposits to earn higher interest.

39. Questions!
ForrYourrBenefit@
Gmail.com
THANK
YOU!

40. Subsequent Discussions…
 How to become Debt-free
 Financial Planning for different life-stages/ Events:-
√ New to UAE
√ Bachelors
√ Newly married
√ With kids
√ Different Age Groups
 How to invest your money