How To Save Foreign Currency In A Nigerian Bank
Have you ever needed to save foreign currencies in our local banks at some point, but you were unable because you didn’t know just how to go about it.
If you ever have any challenge sending or receiving money from your relatives abroad at some point in your life. Then this article is for you. For many reasons, many Nigerians have found it challenging to save and even transfer foreign currency using their local banks.
Sometimes it could be some directives from CBN that affect such transactions; other times, it could be because of requirements set up by your bank.
In the article, I will be x-raying the options available for any Nigerian who wishes to receive funds in dollars and save it up in our local banks.
Now, aside from payment platforms like Paypal, Flutterwave, and the rest of them, many Nigerians are aware that they can also send, receive, and save money in foreign currencies and our domestic banks UBA, FCMB, and ZENITH BANK.
Well. As the old saying goes, “Knowledge is power.”
Secondly, it has been predicted that the inability of Nigeria to diversify her economy and constant borrowing of money from other countries will force the Naira into continuous devaluation.
Some experts have warned that except these deficiencies are taken care of, the Naira will continue to dwindle against the dollar, and there may be no hope to salvage the Naira.
Table of Contents
This article takes you through all the methods to help you save funds (Naira) in foreign currency (Dollar).
Looking at how poor the currency performs in the international market, for instance, the reoccurring inflation rate, the value of our currency will continue to depreciate. If this trend persists, it might be difficult for you to save your money in our local currency.
Perhaps, the only way one can retain the value of the Naira is to start saving in a more robust and harder currency.
The only way to save money, not just in dollars alone, is through a Domiciliary account that is opened by your bank here in Nigeria.
A domiciliary account is a particular type of account that lets you send and receive money in foreign currencies. This kind of account can only be opened for you by your bank here in Nigeria. If you open a domiciliary account, you have the option of saving in any of the following currencies: Euros, US Dollars, and Pounds while earning interests.
The good thing about a domiciliary account is that all your funds are valued at the current naira exchange rate.
This account is not limited to one currency alone. You create this account using any currency depending on what you need it for or the bank of your choice.
The beautiful thing about this account is that you can also convert your local currency into the foreign currency of your choice.
To begin with, if you want to save money in foreign currencies in Nigeria, this is your only option. You can open a domiciliary account with a few banks in Nigeria. However, the benefits of being a domiciliary account holder vary depending on the bank. Here are the primary reasons why people need a domiciliary account:
- It is almost the best option for individuals and cooperative organizations who want to make a local and international transaction.
- You can send and receive funds in foreign currencies such as USD, EUR, YEN, GBP, etc.
- You can equally use your domiciliary account as a savings account.
Some banks in Nigeria allow both cooperate businesses and individuals to create and run a domiciliary account. For most banks, as long as you meet the requirements and provide the necessary paperwork such as:
ID’s, Address verification, Residence permit, Correct bank forms, you can create a domiciliary account.
Pros and Cons of having a domiciliary account
In the same way, you enjoy numerous benefits, and there are also some negativities involved with being a domiciliary account holder. Enjoy when you open a Dom account:
- You can save money in other currencies in domestic banks in Nigeria
- Depending on your bank, you can receive direct foreign currencies
- You gain some level of control over unstable currencies
- Sometimes you could be restricted to one particular type of currency
- There are some extra charges attached to whatever withdrawals you make
Top Five Nigerian Banks that allow domiciliary account
- First City Monument Bank (FCMB)
Suppose you regularly receive or a need to transfer funds in United States Dollars (USD), British Pound sterling (GBP), and European Euro. In that case, you should consider opening a domiciliary account with fidelity. The FCMB domiciliary account is specially designed to help individuals develop the habit of saving their money in foreign currency.
Here are some reasons why you should choose an FCMB Domiciliary Savings Account
- You enjoy free monthly electronic statements
- There are no extra charges when you make cash withdrawals
- The FCMB diaspora domiciliary account allows for both cash lodgment and payments in foreign currency
To open a domiciliary savings account with First City Monument Bank, you must be 18 years of age. You will also need to provide a voter’s card or an international passport, a driver’s license, or a residency permit, alongside one passport photograph, a completed account opening form, and a means of verifying your address.
2. Access Bank
The Access bank domiciliary account is a foreign currency account that allows you to save, transfer and receive funds in Pounds Sterling, Yen, Dollars, euros, and a few other currencies. It is open to both individuals of all classes and corporate bodies.
When you open this account with Access Bank, you can apply for an internet banking token. And as a domiciliary account holder, you can transfer money from your domiciliary account to other beneficiaries who have Access Bank Accounts or domiciliary accounts with other banks in Nigeria. You can make transfers using the Access Bank Electronic Banking platform. The only downside to opening a domiciliary account with Access Bank is a 0.5% cash handling charge on withdrawal.
To open a domiciliary account with Access Bank, you will be asked to provide the following documents:
- Two references
- A residence permits for those living abroad
- A valid means of verifying your address
- Forms CO2 and CO7 (for companies)
- Business registration and certificate of incorporation
- Board resolution as applicable
- Articles and memorandum of association as applicable for companies also
3. Zenith Bank
Aside from from the need to save money in dollars, if you have also been looking for a way to create a foreign currency account, you may want to consider the Zenith Bank Domiciliary Account. Opening a domiciliary account with Zenith Bank allows you to send and receive money at ease wherever you may be.
With just a mobile banking application, debit card, or internet banking, you can make transfers and payments, standing orders, etc., without having to appear physically at the bank.
Zenith Bank has two types of domiciliary accounts: The Ordinary Domiciliary account and the Cash Domiciliary Account. The difference between this two is the ordinary domiciliary account allows transactions in USD, EUR, and GBR while the cash domiciliary account does not. Also, the cash domiciliary account does not permit transfer. It is designed for cash in and cashed out purposes only
3. First bank
The first bank domiciliary account helps facilitate your international business transaction. Like other banks, you can open an account in US Dollars, Pounds Sterling, and Euro. Anyone can operate the account, including individuals, SMEs, and Corporate organizations.
Interestingly, there is no limit to limit to a number of withdrawals you can make.
As an account holder, you are also allowed to make inter sol transactions and withdrawals. However, to open an account, you need a minimum opening balance of €500, $500, or £300. And a minimum operating balance of £50, €100, or $100.
To apply, all you have to do is download the domiciliary account form, complete it, and submit it at the nearest First Bank branch.
Lastly, it is also good to note that some terms and conditions guide the foreign currency fixed deposit offer.
4. Fidelity Diaspora Bank
Fidelity Bank has another name for a domiciliary account – Diaspora Banking. The fidelity diaspora account is open to Nigerian citizens living legally abroad. You can open accounts in only USD, EUR, NGN, and EUR.
If you or your friends and relatives open a domiciliary account with Fidelity bank, it is straightforward to transfer and access funds on your account from your location abroad. Fidelity Bank has made it easy for anyone to credit their diaspora account directly from their bank abroad using any RIA money agent or offshore bank details.
The unique thing about the Fidelity diaspora account is that you access your money in your country of residence currency. And there is also no limit to the amount you can transfer within the bank network.
There are five different options available under the Fidelity Bank domiciliary account. They are:
- Fidelity Diaspora current account
This account allows Nigerians in the diaspora to do more at home. For those who want to spread their banking tentacles and access loans. With this account, they can access credit facilities.
- Global Edge Account
Also known as Fixed Deposit and Investment, the global edge account allows people in the diaspora to earn more by investing dollars in the Global Edge Scheme. Customers operating this account get up to 5% interest depending on the amount. One unique feature of this account is that funds can be repatriated.
- Fidelity Diaspora Sweeta Account
The sweet account is designed especially for children with Nigerian parent(s). like every other type of diaspora account, the account is tailored for Nigerians who reside abroad. It allows customers to build wealth from a young age. Parents have the opportunity to get a loyalty cash reward of about N150,000. The difference in this account is that you will need a minimum operating balance of N1,000.00.
- Fixed deposit Account
The fidelity fixed deposited account is created to make the funds of people living in the diaspora more profitable. You have the option of fixing your Nigerian and foreign currency (GBP and EURO) at attractive rejoices
- Diaspora saving account
This particular account allows Nigerians in other countries to save money in our local banks here in Nigeria. Your relatives in the diaspora can open this account with zero and a minimum operating balance of N2,000.00. there is a substantial competitive saving interest for every amount that is saved in this account
To open a diaspora banking account with Fidelity bank, you need the following forms:
5. Guarantee Trust Bank (GTBank)
GTBank is one of those banks that
Benefits of GTBank domiciliary account
- You enjoy 24/7 banking services via various e-channels.
- You have the privilege of making withdrawals in any foreign currency from any GTBank branch near you.
- It is easy to transfer funds in foreign currency from your domiciliary account to another bank’s domiciliary accounts in Nigeria and abroad.
It is straightforward for anyone to open a GTBank domiciliary account. You will only have to meet a few requirements.
Requirements for opening a GTBank domiciliary account
To open a domiciliary account, you have to provide the following:
- A domiciliary account form that has been filled and
- A passport photograph
- Utility bills issued to you within the last three months
- A valid means of identification. It could be an international passport, a driver’s license, a National I.D Card, or any other means of identification that GTBank will accept.
we all know how fluctuating the Naira can be at times and this is why some people up to save their money in a more stable currency like the dollar or Euro. Saving money in foreign currency is not really as difficult as that some people think. do you have intentions of saving your money in foreign currency? we hope this article will help you choose the best bank to save your money and also see the need why you should open a domiciliary account.