Types of Bank Accounts in Nigeria

It would be absurd for a person not to have a bank account at this era. Bank accounts have made sending and receiving money very easy and fast.There are different types of bank account you can operate in Nigeria, this article will provide the basic knowledge on different bank accounts for you so that you don’t get confused when you go to the bank to open yours.

A bank is a financial institution that accepts and make deposits available to the people. When you have money, in order to keep it secure you can take it to the bank where it will be put to use by lending people while you get interest in return.

Importance of Bank Accounts

  1. it helps with your financial transactions
  2. it helps to secure your money
  3. it teaches you how to save
  4. it helps to control your spending habit
  5. by having a bank account, you can have access to credit facilities

Types of Bank Accounts in Nigeria

Types of Bank Accounts in Nigeria

Savings Account

The most common and used account in Nigeria is savings account. It is the type of account for urgent 2k. This bank account attracts lower Charges unlike other accounts. The only challenge with this type of account is that you can only perform minimal transactions on it. When you open this account, you would be issued a passbook and an ATM card which makes it very easy for you to do anything without having to visit the bank again. This account gives an annual interest rate of 5%

Current Account

This is the account most government workers in Nigeria operate. Holders of current account are issued a cheque book when they open. With this account, you can perform numerous transactions as possible unlike the savings account. No interest is paid to holders of this account at the end of the year.

Fixed Deposit Account

According to the name, it is an account where you keep your money for a fixed or specified period and you in turn get interest when the time elapses. If you decide to withdraw your money before the fixed period, you won’t get any interest. The interest is determined by the amount you invest. The minimum number of days you can keep your money is 30 days, which is approximately one month and a maximum number of 180 days which is 3 months.

Domiciliary Account

This account allows you to perform transactions in foreign currencies such as dollar, pounds, etc

Corporate Account

Companies operating in Nigeria open this type of account for their business.

Joint Account

This account is opened, maintained and controlled by two individuals. it can be husband and wife, siblings, friends, business partners or people that have agreed to open an account together.When one of the account holders wants to perform any transaction on the account, the other party must be aware.

Non Resident Account

This type of account is owned by citizens of Nigeria staying abroad as anyone can send money to them from here and they can easily withdraw it anywhere they are.

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