Hello 👋 I’m back with some financial gist 😊 I’m going to be breaking down how you can open a domiciliary account here in Nigeria, I’ll also be listing the banks that you can use.
In this region of the world, youths are heavily scared of talking about money, they’re even more scared of making money moves and setting money goals.
With all that being said, let’s dive right in. Seeing the way the Naira is jealously interested in losing so much value, it’s no surprise that everyone is either seeking ways to either save in other currencies or earn in other currencies. To earn, send and receive money in other currencies, you’ll need to have a domiciliary account.
Dear young person, You’re not too young to earn a certain amount of money, you’re not limited to just urgent 2k type of money. This is the best time to accumulate wealth.
What Is A Domiciliary Account?
A domiciliary account is a specific kind of bank account that allows you to receive and make payments in foreign currencies, including US dollars. Every money in a domiciliary account is valued at the current naira exchange rate.
A domiciliary account is not intended for saving of money, but rather it is supposed to help you carry out your business transactions using foreign currencies. With a domiciliary account, you will open the account with your bank in the country where you live. Once the account is opened, you can then start using it. The account number will be sent to your email or your telephone number.
After getting the account number, you can then give it out to the person that will send money to you abroad with some additional details. If it is a dollar account, the money will be sent in dollars, this means that the person sending you the money must send it in dollars. Once you receive your alert, you can go to your bank and withdraw the dollars by filling your foreign currencies withdrawal slip. The dollars will be given to you and then you can proceed to change it to your local currency (which is naira in Nigeria) at the bureau de change.
Like every other thing, a domiciliary account has benefits as well as disadvantages. This is why it’s extremely important to arm yourself with knowledge. That’s what I’m here for.
Benefits of Opening a Domiciliary Account
There are lots of benefits that come with opening a domiciliary account in Nigeria. Here are some of the benefits.
• One of the benefits of domiciliary account is that it gives you the opportunity to keep money in global currencies that are very reliable. And of course, gives you more control over unstable currencies.
• It enables you to receive foreign currencies directly into your domiciliary account.
• You can use it to make payments for international transactions online via your Master cards
You can also easily serve as a referee for someone
Disadvantages of a Domiciliary Account
While this type of foreign account is overloaded with so many benefits, it also has a few disadvantages that you may like to know.
• You are limited to one type of currency per account. This means that you must have an account for every foreign currency that you want to make transactions with.
• It is usually not easy to get a referee for this account. Banks accept only a person with a domiciliary account to stand as a referee as most people in Nigeria use either Naira savings account or current account.
Also, the bank charges on the domiciliary account and transactions are quite high depending on the bank.
Top 5 Banks To Open A Domiciliary Account With In Nigeria
After a little research, I found that there are top 5 Banks in Nigeria that aid their customers in opening a domiciliary account.
Most banks in Nigeria allow you to open a domiciliary account, including the following:
• Guaranty Trust Bank (GTB)
• Zenith Bank
• First Bank of Nigeria
• Access Bank
• United Bank For Africa (UBA)
If you do not see your bank listed here, make sure to check with them. They still may let you open an account.
Each bank has their own requirement. I’ll explain this in the part 2. Let me know if you enjoyed this post in the comments.
Till next time,