We’re here to talk to you about one thing that affects almost every one of us, Do you care to know? It’s “Bank charges“. Have you ever wondered about how much money leaves your account every month? How much does it cost to transfer from one account to another account? And even how much is going to be deducted this current month? Then this article should interest you. In this blog post, we’ll break down the various bank charges in Nigeria and explain them in simple terms.
Bank Charges in Nigeria
Bank charges are known as the fees that financial institutions impose/charge on their customers for various services and transactions. These charges vary from one bank to another and may apply to different types of accounts and activities. Permit us to list some common bank charges in Nigeria and how they relate to you.
List of Bank Charges in Nigeria
Account Maintenance Fee
Have you ever heard of this before? Well, it is a monthly or quarterly fee that banks charge for maintaining your account. It’s essentially the cost of keeping your account active.
ATM Withdrawal Charges
I’m sure this is what we are all familiar with. When you use another bank’s ATM to withdraw cash beyond a certain number of times in a month, you will incur charges for each withdrawal process.
SMS Alert Charges
Banks send you SMS alerts for transactions on your account. Some banks charge a small fee for this service. This is kind of annoying but it is the truth
Card Maintenance Fee
Almost every account holder in Nigeria will have a debit or credit card, so your bank may charge you an annual fee for maintaining the card.
Dormant Account Charges
For instance, If you have an account that has been inactive for a long time, your bank may charge a dormancy fee. This is unusual but it is what they do.
Interbank Transfer Charges
This is also common. When you transfer money from your account to another bank, it will cost you some charges. The amount can vary depending on the transaction amount and channel used (online, mobile app, or in-branch).
Stop Payment Order Fee
If you request a stop payment on a cheque, your bank may charge you a fee for this service.
Account Statement Charges
Most of us don’t notice that if we request a printed account statement, there might be a fee associated with it.
Cheque Book Issuance Fee
Banks usually charge for issuing a new checkbook. This has been there for a while now
Loan Processing Fees
For instance, When you apply for a loan, banks often charge a processing fee, which is a percentage of the loan amount you want to take.
If you go into overdraft (spend more than what’s in your account), you’ll be charged interest on the overdrawn amount.
Foreign Exchange Charges
When you perform foreign currency transactions, such as buying dollars, there may be a fee and an exchange rate markup.
Bank transfer charges in Nigeria
After we have checked through the first part. Now, let’s dive into bank transfer charges, which is a topic of particular interest to you.
- Intrabank Transfers: When you transfer money from your account to another account within the same bank, the charges are usually minimal, and in some cases, it’s free of charge.
- Interbank Transfers: Transferring money from your account to an account in another bank often gets accomplished with charges. The charges can vary depending on the bank and the transfer method (online, mobile app, or in-branch).
- USSD Transfer Charges: If you use USSD codes to make transfers, there are typically charges associated with this service. This charge is the same for all banks.
Bank Charges on Current Account in Nigeria
In case you have a current account, here are some specific charges that may apply:
Account Maintenance Fee
Current accounts usually have a higher maintenance fee compared to savings accounts due to the additional services they offer.
Cheque Book Charges
Since current account holders often use cheques for transactions, there are charges for ordering new checkbooks.
If you have an overdraft facility on your current account, be aware of the interest charges on the overdraft amount.
Current accounts may have transaction charges for activities like cash deposits, withdrawals, and transfers.
Bank charges are certain because that’s how they sustain their customers and also get active in the competition market, but it’s important to be aware of them and analyse how they affect your finances either in a positive or negative way. It is true as you can see above that different banks have varying fee structures, so it’s a good idea to check with your bank for their specific charges.