Bank Account: know which account type you should open.

There are interesting tips and details you will need to know if you’re looking to open a bank account in Nigeria. Account types vary from Savings, Current to Domiciliary Accounts.

The list below will give you as much knowledge as you will need so you can make an informed decision on which bank account type you wish to open.

  • Savings Account

An easy account type to open, also the most commonly opened account type. A savings account is very easy to set up, but it comes with some financial transaction restrictions.

  • Current Account

This account type offers a feature of limitless deposit and withdrawal to its holder. You should open it preferably for business transactions. You will also be offered a checkbook. This account is sometimes referred to as a ‘Checking Account’.

  • Fixed Deposit Account

You open this account only if you’re looking to earn high interest on money invested. You can only open it for a fixed period of time – a minimum period of 30 days and a maximum period of 180 days.

  • Joint Account

You open this account with the name of two or more people who are all signatories to the account. The nature of this account means that no individual can make a decision without informing the other party/ies in signatory/ies.

There are two types of joint accounts: Joint-tenancy mostly operated by married couples and Tenants-in-common mostly operated by business partners.

  • Domiciliary Account

A domiciliary account is opened for carrying out foreign transactions.  The account is used to transfer and receive money in foreign currency to and from other countries.

  • Corporate Account

Corporate accounts are created for large organizations and multinationals that enjoy high profits.

  • Non-Resident Nigerian Account

This account type appeals specifically to those Nigerians living overseas and in the diaspora.

Read more on bank accounts, features and drawbacks here.

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