Bank Charges in Nigeria
Bank charges in Nigeria refer to the fees imposed by banks for various services they provide to customers. These charges cover a wide range of services, including account maintenance, ATM usage, withdrawals, transfers, and more. In this post, we’ll go through the list of bank charges in Nigeria and their fees.
Nigerian banks have schedules outlining these charges, which may vary between banks and account types. Understanding these charges is very important for account holders to manage their finances effectively and avoid unexpected deductions.
These charges can vary between banks and may apply to different types of accounts and activities. Let’s go through some common bank charges in Nigeria and how they affect you.
List of Bank Charges in Nigeria
Account Maintenance Fee
This is a monthly or quarterly fee that banks charge for keeping your account active and maintaining your account.
ATM Withdrawal Charges
When you use another bank’s ATM to withdraw cash more than a certain number of times in a month, you will incur charges for each additional withdrawal.
SMS Alert Charges
Banks often charge a small fee for sending SMS alerts for transactions on your account.
Card Maintenance Fee
If you have a debit or credit card, your bank may charge you an annual fee for maintaining the card.
Dormant Account Charges
If your account remains inactive for a long period, your bank may charge a fee for dormancy.
Interbank Transfer Charges
We all know that transferring money to another bank will incur charges, which can vary depending on the amount and method used (online, mobile app, or in-branch).
Stop Payment Order Fee
If you request to stop payment on a cheque, your bank may charge a fee for this service.
Account Statement Charges
Requesting a printed account statement might come with a fee.
Cheque Book Issuance Fee
Banks usually charge for issuing a new cheque book.
Loan Processing Fees
Applying for a loan often involves a processing fee, which is a percentage of the loan amount.
Overdraft Charges
If you spend more than what is in your account, you’ll be charged interest on the overdrawn amount.
Foreign Exchange Charges
Transactions involving foreign currency, such as buying dollars, may include a fee and an exchange rate markup.
Bank Transfer Charges in Nigeria
Bank transfer charges are fees levied by banks for the transfer of funds between bank accounts. These charges can vary depending on various factors such as the type of transfer (domestic or international), the amount being transferred, and the banks that are involved. Below are some of the common bank transfer charges.
Intrabank Transfers
When you transfer money between accounts within the same bank, the charges are usually very low or sometimes even free. This means that if both you and the recipient have accounts with the same bank, you might incur little to no cost for the transfer.
If you frequently transfer money to friends or family who use the same bank, you can save on transfer fees.
Interbank Transfers
Transferring money from your account to someone else’s account in a different bank typically incurs a charge. The cost of these interbank transfers can vary based on several factors like the banks involved and the method you use to make the transfer
Different banks may have varying fee structures for interbank transfers. Transferring money via the bank’s website may have specific charges. Using the bank’s mobile app to transfer money can also have different fees. Going to a bank branch to make the transfer might involve different charges compared to digital methods.
Always check the transfer fees with your bank before initiating an interbank transfer. Different methods might have different charges, so choose the one that suits your needs best.
For regular interbank transfers, consider using platforms or services that offer lower fees. Compare the fees of different banks and transfer methods to find the most cost-effective option for your needs.
USSD Transfer Charges
When you use USSD codes (like *737# or *770#) to transfer money, there are specific charges associated with this service. These charges apply uniformly across all banks.
The fee for using USSD to transfer money is standardized across all banks. This means that regardless of which bank you use, the charge for USSD transfers will be the same.
You can use it in sending money to an account within the same bank or sending money to an account in a different bank.
Knowing the different types of transfer charges helps you choose the most cost-effective way to send money. For example, intra-bank transfers might be cheaper than inter-bank transfers.
Always verify with your bank to understand the exact charges for the type of transfer you intend to make. This can help you avoid unexpected fees and manage your finances better.
Contact your bank or visit their website to get detailed information on USSD transfer charges. Compare USSD transfer charges with other transfer methods like mobile banking apps, internet banking, or ATM transfers to find the most economical option.
Bank Charges on Current Account in Nigeria
For people that have a current account in Nigeria, below are charges to get familiar with.
Account Maintenance Fee
Due to the additional services they offer, current accounts generally have higher maintenance fees compared to savings accounts.
Cheque Book Charges
Current account holders often incur charges for ordering new cheque books.
Overdraft Fees
If your current account has an overdraft facility, you’ll be charged interest on the overdraft amount.
Transaction Charges
Activities like cash deposits, withdrawals, and transfers. Current accounts may have charges for them
Conclusion
Bank charges are a part of how banks operate and remain competitive. It’s important to be aware of these fees and understand how they impact your finances. Different banks have varying fee structures, so check with your bank for specific charges.