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How to Open a Domiciliary Account in Nigeria

Opening a domiciliary account in Nigeria is one of the best decisions you can make for your financial security. A domiciliary account allows you to hold your money in a foreign currency, which gives you more options when it comes to investing and spending.

In this article, we will discuss the benefits of dom accounts and how to open one in Nigeria.

There are many benefits of dom accounts, but the most important one is protecting your money from currency fluctuation. The Nigerian Naira is notoriously unstable, and holding your money in a foreign currency gives you more stability and security.

What is a domiciliary account?

A domiciliary account is a bank account that allows customers to hold and manage the foreign currency. This type of account is often used by businesses or individuals that need to make regular payments in another country.

This means an account held in Nigeria but with a currency other than the Naira. For example, an account can be domiciled in Dollars, Pounds, or Euros.

What are the benefits of a dom account in Nigeria?

Many banks offer domiciliary accounts, and they typically come with several features and benefits, such as:

  1. Online banking and 24/7 customer support
  2. It protects money from currency fluctuation
  3. Higher interest rates than regular savings accounts.

What documents are required to open a domiciliary account?

To open a dom account, you need: 

  1. Completed and signed domiciliary account opening form
  2. A valid passport (international passport, driver’s license)
  3. A visa or residence permit 
  4. Proof of address 
  5. A utility bill 
  6. Two passport photographs 
  7. Two reference forms from current account holders
how to transfer money from domiciliary account to naira account

Opening a dom account is a simple process and can be done at most Nigerian banks. Once all of the required documents have been submitted, the bank will open the account and issue the account holder with a debit card and checkbook.

If you liked this article, you might also like to read the following advanced level articles:

  1. How to Check Your BVN
  2. How to check NIN verification status

How to send money to a domiciliary account in Nigeria

There are a few different ways to fund your dom account. One way is to transfer money from your checking or savings account. Another option is to use a credit or debit card. Finally, you may also be able to set up direct deposits from your employer. 

  • Checking or Savings Account

To transfer money from your checking or savings account, you will need the routing number and account number. You can typically find this information on your monthly statement. Once you have this information, log into your online banking portal and initiate a transfer. 

  • Credit or Debit card

If you would like to use a credit or debit card, you will need to provide the card number, expiration date, and security code. You will be asked to provide the name on the card and the billing address associated with the card. 

  • Direct Deposits

Finally, if you have a direct deposit set up with your employer, you can typically add your domiciliary account as an additional account to receive funds. To do this, you will need the routing number and account number for your domiciliary account. You may also be asked to fill out a direct deposit form from your employer. 

Ultimately, there are several ways to fund your domiciliary account. Talk to your bank or financial institution to find out what options are available to you. Funding your domiciliary account is simple and easy

Types of domiciliary account

There are a few different types of domiciliary accounts, each with its own set of features and benefits.

  1. Checking Account. Checking accounts typically offer online banking, 24/7 customer support, and higher interest rates than regular savings accounts.
  2. Savings Accounts,
  3. Money Market Accounts
  4. Certificates of Deposit.

Talk to your bank or financial institution to find out which type of dom account is right for you

What transactions can be carried out on a dom account?

The CBN approves dom accounts for certain purposes such as

  1. medical treatment
  2. school fees
  3. business transactions
  4. importation of personal effects.
best domiciliary account in Nigeria

A dom account can only be opened at an authorized dealer bank or a microfinance bank.

What is the minimum balance to open a domiciliary account?

Some banks require a minimum deposit of $ 50, or $100. Once the account is opened, customers can deposit and withdraw funds in the local currency. They can also use their dom account to make payments in another country.

How to withdraw money from a domiciliary account?

Dom account holders can withdraw money from their account using a debit card, ATM, or by writing a check. Some banks may also offer online banking services, which allow customers to transfer funds to their local checking or savings accounts. 

What is the interest rate on dom accounts?

Interest rates on domiciliary accounts vary depending on the bank and type of account. However, most domiciliary accounts offer higher interest rates than regular savings accounts. 

Which Nigerian banks have domiciliary accounts?

You can open a dom account at most banks in Nigeria, including Guaranty Trust Bank (GTB), Zenith Bank Firstbank, Access Bank, Fidelity Bank, United Bank For Africa (UBA) Plus, many more! Check with your bank if you don’t see it listed here.

How to close a domiciliary account?

To close a dom account, customers must first transfer all of the funds out of the account. They can then contact the bank to close the account. Some banks may require customers to fill out a form or provide written notice. 

Disadvantages of a domiciliary account in Nigeria

There are a few disadvantages to dom accounts, including fees and exchange rates. Most banks charge a monthly maintenance fee, as well as transaction fees for each deposit and withdrawal.

In addition, the exchange rate may fluctuate, which can impact how much money you have in your account. All Rights Reserved

CBN new policy on domiciliary account

Conclusion

Dom accounts are a great way to save money and make international payments. They offer higher interest rates than regular savings accounts and provide customers with a safe and convenient way to manage their finances.

If you have any questions, please use the comment below

By Ajasa

Technical Presales Engineer with strong interpersonal skills and the ability to communicate with people at all levels.

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