Bank Charges In Nigeria 2020 By The Central Bank

There are different types of bank charges in Nigeria 2020, which range from savings and current account, term deposit account, lending fees, etc.

As an account holder, it is wise to know your bank charges as it differs, especially in money transfer.

Like I said earlier on, there are different types of bank charges in Nigeria, some are fixed while some are negotiable.

The fixed charges are the charges imposed by the CBN, through the negotiable charges are also imposed by the central bank, in most cases, banks create those charges.

Bank charges in Nigeria 2020

So we are looking into those different types of bank charges we have and this also includes the new charges on deposit and withdrawal, which takes effect in 2020.

1. Bank Charges on Savings Account

In a savings account, bank charges come in many ways, in terms of withdrawal, transfer, and maintenance.

A savings account is the most popular and common type of account the society goes for, in order to save or secure their money in the bank.

Withdrawal Fee

What are the withdrawal charges; this includes the atm withdrawal and the new 3% on the withdrawal.

For atm withdrawal, if a bank customer withdraws cash from another atm that is not his bank, it attracts a fee of N35 per withdrawal.

Come next year, there will be a fee of 3% on a savings account, for a withdrawal above N500,000. You can read more about the new Nigerian bank charges on withdrawal.

Money Transfer Fee

Another bank charges in Nigeria is the money transfer charges, this involves all the financial institutions in the country.

The highest bank charges on money transfer are N52 per transfer on domestic transfer.

However, when I say domestic transfer, it means a money transfer involving banks in Nigeria.

An international transfer involves a bank in Nigeria and another bank outside Nigeria.

For example, transferring money from your Zenith bank account in Nigeria, to a Wells Fargo account in the United States. This can also be called a wire transfer and it involves a swift code.

Transferring money from your local bank account to a foreign account attracts a higher bank charge, it can even be close to N10,000 per transfer (depending on the amount that you are spending to the recipient).

Maintenance fee

This is another popular bank charges in Nigeria in 2020. If your account is active, the bank will always charge you for a maintenance fee, this includes atm and card maintenance fee, plus SMS charges, etc.

The maintenance fee is negotiable, that is, it is not fixed.

Banks have their various maintenance fee, for example, gtbank will charge you N100 or even N120 in a month for a maintenance fee, while FCMB will charge you N90 per month for a maintenance fee.

There are other bank charges in Nigeria and this also includes payment fees. There are payments that attract a fee of N100, whether it is online or offline.

If you are paying for an electricity bill, it attracts a fee of N100 but paying for your DStv or Govt subscription from your bank account doesn’t attract any fee at all.

So payment fee or charges differs from the company that you’re making the payment to.

2. On Current Account

The current account is one of the expensive accounts to maintain, you need to balance your cheques, withdrawals, and debits.

The rules about minimum balance requirements and other fees may also throw you for a loop.

Once you have a current account, it is your responsibility to handle it properly. It is essential that you balance your checkbook each month.

Additionally, you need to keep a running balance each day, which will prevent you from accidentally overdrawing your account.

The bank charges on current account in Nigeria include;

Monthly Fee

Some banks peg a monthly fee on the current account, note that it is completely different from the maintenance fee.

The charges do vary from bank to bank, some may charge an account holder a monthly fee of N100 or even N150 per month.

Maintenance fee (CAMF)

Just like the savings account, the current account also attracts a maintenance fee which is called CAMF or current account maintenance fee.

The CAMF fee can charge an account holder up to N1000, though it is negotiable and varies from bank to bank too.

According to the Central bank, the CAMF charges are only applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank.

POS Fee

Pos fee is another charge levied upon current account holders with the electronic device.

The central bank made it mandatory that every N1000 or above POS transaction attracts a fee of N50 which can be called a Stamp Duty.

However, the N50 stamp duty is now being paid by customers making payments using the POS.

You go to a company to pay for a product and wants to use the POS for the payment, if the amount is N1000 and above, you will see that the company will tell you that you will have to pay N50 for the transaction.

This can be called an indirect tax, as it is the company who supposed to pay for the N50 stamp duty and not their customers.

Charges on Cheques/book

A checkbook is issued to a current account holder upon opening the account. It is a must or compulsory even if you are not going to make use of it.

But you know that a current account is also a business account, so why wouldn’t someone with a business account not needing to have or use a checkbook.

There are three types of charges on cheques and checkbooks and this was indeed introduced by the central bank of Nigeria.

Any charges by a commercial bank to its customers must be approved by the central bank.

The first charges on the checkbook are called the cost recovery and the fee differs from bank to bank.

The second is called a counter cheque, which costs a minimum of N50 per leaflet while for Stopped Cheques, a customer is charged N500 per order.

Other bank charges in Nigeria on the current account include SMS charges, atm withdrawal charges, money transfer charges, payment charges, hardware token charges.

3. Domiciliary Account Fee

A domiciliary account is a type of savings account, but for foreign currency. People with this type of account can save any type of foreign currency in their bank account.

For example pounds, dollar, euro, yen, etc. But having this account attracts a fee for a sum amount received or transferred to your account.

Open a domiciliary account isn’t free in some banks, while some banks will give you the opportunity to create your account for free.

The first bank of Nigeria has the best domiciliary account but will only cost you $100 to create an account with them.

The likes of Gtbank gives you the privilege for free but will require you to have a two referee with a current account and will be from gtbank.

But where the problem lies in the charges. 

Banks can charge up to $150 for funds received to your domiciliary account or $50 for payment made from your account. But note that this is usually charges, but making payment or money transfer from your domiciliary account isn’t a monthly charge.

If you transfer $500 from your account, be rest assured that your bank might charge you up to $20 for such a transaction. The higher the amount transferred, the higher the bank charges.

Other bank charges in Nigeria 2020

Apart from the types of accounts and their bank charges that I’ve listed above, there are other charges and it includes;

Token Fee

Bank charges in nigeria 2019

This is only applicable to those that requested token hardware. Token hardware is a small device, used to gain access to an electronically restricted resource.

When you want to change your phone number used in your bank account, token hardware is used for it. It is more secured compared to OTP or token software.

You can only buy it in the bank, and it costs up to N3000 or N2500 though depending on the bank.

Requesting for a statement of account 

Requesting for sta of account doesn’t come for free, you as a bank customer or an account holder can pay up to N30 for it.

But recently, I noticed that gtbank and first bank of Nigeria gives a statement of account for free, but you will have to download it from your email address.

Few days to 2020 and by March, bank customers will be paying a fee on deposit and withdrawal for the amount above N500,000, and more especially those with current accounts. We’ll have to wait till March 2020 and let’s see how it goes.

So for now, these are the bank charges in Nigeria 2020 that I know. You may know more and please I will be grateful if you care to share it here with us thanks.

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