Having a bank account in the 21st century Nigeria is a necessity. But you know what’s even more important? Knowing the type of bank accounts available for you! Having the choice of options makes it possible for you as a customer to select from a range of options; options which fit your immediate financial needs. In this article, we will discuss the seven basic types of bank accounts available in Nigeria.
Opening a bank account has become easier than it used to be. With just a document of identification and a utility bill, customers can now open a bank account from the ease of their homes. Children can also open bank accounts which parents can use to save money for them. However, this money will be available when they attain a certain age.
Unfortunately, even with the ease that comes with opening an account, it is still quite shocking to discover that several individuals still have no bank account.
Types of bank accounts in Nigeria
There are seven types of bank accounts. This knowledge becomes useful if you are opening a different bank account or an entirely new one. Check out the list of types of bank account in Nigeria:
- Savings Account:
A savings account is usually considered the most common type of bank account in Nigeria. It is generally used for deposits and withdrawals, and this causes it to be restricted to several other transactions. For example, a savings account have a lower interest rate when compared to different account types. To open a savings account, you need little or no money at all.
- Current Account:
This type of bank account is perfect for business owners because the transactions allowed have no limit. A savings account differs from the current account because a savings account usually has a specific limit each day, such as 500,000 naira as the maximum transactions’ limit.
Also, when you open a current account, a cheque book is issued to the account owner.
- Fixed Deposit Account:
This account is for fixed deposits, as the name implies, i.e. depositing money that you can’t withdraw until a defined period elapses. This is usually a minimum of 30 days and a maximum of 180 days. You can check out this post to see how you can calculate the fixed deposit interest rate in Nigeria.
This account is used by corporate individuals who hope to earn interests on specific amounts, amounts that have been deposited in the fixed account.
- Joint Account:
Of course, this is an account owned by two or more individuals. Every one of these individuals will be signatories, and this means that no one can decide without the knowledge of the other signatories. Joint accounts are broadly separated into two categories; joint tenancy for couples and tenants-in-common for business partners.
- Domiciliary Account:
This is an account which operates in foreign currencies and is perfect for international transactions. Holders of this account type enjoy its many benefits as they engage in international business.
- Corporate Account:
A corporate account is usually opened by companies, organizations, or large corporations. It is strictly for business purposes.
- Non-Resident Nigerian Account:
This kind of account is for Nigerians in the diaspora. Several Nigerians — for various purposes — want to operate a Nigerian bank account, hence this innovation.
Now you have a better understanding of the kind of bank account that fits your need, it’s time to go into a bank and make more inquiries on the necessary documents.