Knowing about bank accounts
In this modern age, it is imperative that both individuals and cooperation own and operate an account with any financial institution of their choice.
Therefore, one might say the need to own a bank account is a necessity and not just an option.
This post will attempt to analyses the 7 major types of bank accounts operating in Nigeria and the benefits accrued to them.
The need to own a bank account has metamorphized, that even kids now own an account though, they may not have access to it until they reach a particular age; but the fact remains that they need and as well own a bank account.
There are different types of bank accounts, so it is pertinent before going into a banking hall confused and without any clue what kind of account you need to open, read through the various types of accounts operated by Nigerian banks.
1. Savings account
A savings account is the most common and basic account own and operated by many.
A savings account is an interest-bearing account even though the interest is very low and may be considered insignificant. This account can be open with little or no cash, i.e. Zero balance.
Basically, this is just an account for deposits and withdrawals thus making it to have some restrictions on some types of transactions.
2. Current account
A current account would be preferable for business because transactions on this account are limitless, unlike the savings account. A cheque book is also issued after opening a current account.
A current account allows you to perform 3rd party or business transactions.
Things to note about a current Account
• It requires a minimum opening balance of N5,000 for individuals and N10,000 for corporates.
• No minimum operating balance allowing for the account to be operated at zero balance.
• No limit to the number of withdrawals in a month.
• Attracts account maintenance fee
• This account allows funds transfer and bank cheques/drafts.
• Inter-branch transactions – account owner and third parties are allowed.
• This account allows access to any of the numerous bank’s products.
• It can be used to access loans.
• Issuance of cheque books valid for clearing nationwide.
3. Fixed deposit account
This type of account provides customers who own and operate it a higher rate of interest compared to the savings account.
Just as the name implies, this account is for a fixed period of time, a minimum period of 30 days and a maximum period of 180 days. During this period, the money deposited cannot be withdrawn until the duration elapses. The fixed account is can be owned and operated by individuals as well as corporate clients looking to earn high interest on money invested.
4. Joint account
This is a type of account that is opened with the name of two or more people who are all signatories to the account. Co-owning the account, no individual can make a decision on a joint account without informing the other signatory or signatories.
There are two types of joint accounts which are as follows:
i. Joint-tenancy mostly operated by married couples
ii. Tenants-in-common mostly operated by business partners
5. Domiciliary account
This is an account that is owned and operated by individuals or corporations with the aim of carrying out foreign transactions. The account can be used to transfer money to another country or receive foreign currency from other countries. It is mostly operated in dollars.
6. Corporate account
An account opened by multinational companies and big corporations. The corporate account is totally different from the personal or investment banking accounts, it is majorly opened for business purposes.
7. Non-resident Nigerian account
A Non-resident Nigerian account is a bank account designed for Nigerians living in the diaspora and want to operate a Nigerian bank account.
You can walk into any banking hall of your choice today to make more inquiries about the type of bank account that suits you.