A Domiciliary account is a foreign currency account that allows you to carry out foreign transactions such as sending and receiving of money in different currencies like Pounds, Euro, Dollar, etc. You can open a domiciliary account here in Nigeria, and conveniently operate it from any country of your choice and even within Nigeria. The purpose of opening a Domiciliary account is not to save money but for transacting business. It helps you to carry out your business transactions using foreign currencies.
A domiciliary account is a type of bank account that allows you to fund it with foreign currencies such as dollars, pounds or euros and enables you to do foreign transactions on that account. You can use a domiciliary account to transfer money to another country or receive foreign currency from another country.
Opening a domiciliary account gives you access to debit cards, internet banking, and mobile banking. So you can simply do your transfers, standing orders, payments, etc without going to the bank halls.
Benefits of Opening a Domiciliary Account
There are lots of benefits that come with opening a domiciliary account in Nigeria. Here are some of the benefits.
- One of the benefits of domiciliary account is that it gives you the opportunity to keep money in global currencies that are very reliable. And of course, gives you more control over unstable currencies.
- It enables you to receive foreign currencies directly into your domiciliary account.
- You can use it to make payments for international transactions online via your Mastercards
- You can easily serve as a referee for someone
Disadvantages of a Domiciliary Account
While this type of foreign account is overloaded with so many benefits, it also has a few disadvantages that you may like to know.
- You are limited to one type of currency per account. This means that you must have an account for every foreign currency that you want to make transactions with.
- It is usually not easy to get a referee for this account. Banks accept only a person with a domiciliary account to stand as a referee as most people in Nigeria use either Naira savings account or current account.
- Also, the bank charges on the domiciliary account and transactions are quite high depending on the bank.
Also Read: Nigeria’s Top 5 Mobile Banking Apps In 2019.
Top 5 Banks To Open A Domiciliary Account With In Nigeria
Every bank in Nigeria opens domiciliary accounts for their customers. But there are top ones that make the operation of the account more worthwhile for you. So in no particular order, here are the top 5 banks in Nigeria that you can open a domiciliary account with. Others are good but these are actually topping the list.
1. Zenith bank
Zenith bank is one of the leading banks Nigeria with good customer service and products. Zenith bank operates two kinds of domiciliary account Ordinary domiciliary account and Cash domiciliary account. The difference between the two accounts is while you can make transfers with Ordinary domiciliary account, transfers are not allowed for Cash domiciliary account and again with Cash domiciliary account, you have access to EazyMoney as part of the available channels.
Features and Benefits
- It has zero opening balance
- Zenith bank offers internet banking
- It also issues debit card (USD)
- Your access to mobile banking
- You can receive email/SMS alerts
- Standing orders
- It only operates with these foreign currencies USD, GBP & EUR
- First, you need an account opening form
- One passport photograph of authorized signatories
- Valid ID (Driver’s License, International Passport, National Identity Card or Voter’s Identity Card)
- Public Utility Receipt dated within the last three months
(PHCNbill, water rate bill, tenement rate, rent receipt, telephone bill, etc.)
- Visitation Report (Residence)
2. Guaranty Trust Bank
Guaranty Trust Bank is also a top bank in Nigeria that will give you value for your money when it comes to domiciliary account opening. GTB domiciliary account is available only in US Dollars, British Pounds and Euros which can be funded through cash inflows and cash deposits.
Benefits of GTB domiciliary account
- You have 24/7 banking services via various e-channels.
- You can transfer funds in foreign currency to other bank’s domiciliary accounts in Nigeria and outside Nigeria
- Also, you can make cash withdrawals in foreign currency from any GTBank branch.
Requirements for GTB domiciliary account
- Filled account opening form.
- You need a copy of identification card (Driver’s License, International passport, National I.D Card, or any other acceptable by the bank).
- One passport photograph.
- Also, two completed reference forms.
- A utility bill issued within the last 3 months
3. Fidelity Bank
Fidelity bank provides you a foreign currency account to do international transactions. It operates in US Dollars, British Pounds and Euro. It enables inflows to hit designated account without being subjected to variation in the local exchange rate, depending on the currency you are operating.
Features and Benefits of Fidelity Diaspora domiciliary account
- A minimum account opening balance of $50, €50, £50
- A minimum account operating balance of $30, €30, £20
- An interest rates on call/demand and fixed deposits
- You have access to Internet banking, email transaction alerts and statements
- Also, you have the option of a Nominee Resident Joint Signatory in Nigeria (e.g. spouse, parent, etc)
- Standing orders
- There are investment facilitation services for shares traded on NSE
- A draft issuance in foreign currency
- You have the privilege to open a Domiciliary and a Naira current account
Requirements for Fidelity Diaspora domiciliary account
- A Diaspora Account Opening Form
- You need one Passport Photograph (digital passports allowed)
- A valid identification card; Valid Nigerian passport, valid driver’s license, valid national ID card or voters cardValid foreign passport/driver’s license supported by proof of Nigerian Nationality(either birth certificate, expired/valid Nig. Passport, drivers license or Voters card)
- Proof of address. A notarized/certified copy of any of the following: Stamped Bankers confirmation utility bill issued within last 3 months, bank or credit card statement issued within the last three months and tenancy agreements/rent receipts.
- Also, you need 2 Nigerian Bank references from active current, domiciliary or corporate account holders ( for current and domiciliary accounts only). Where certification of Documents is carried out by any of the following: Notary Public/court/ lawyer/Solicitor, Nigerian Embassy/High Commission/Consulate in customer’s country of residence, your Foreign bankers, government Security Agencies, commissioner for Oath
4. First Bank
First bank domiciliary accounts enable you to facilitate your international transactions and can be accessed via cash deposits, foreign currency cheque deposits or traveler’s cheque. First bank has two kinds of domiciliary account; FirstDom Plus and Domiciliary account. FirstDom Plus is a foreign currency deposit account that is solely targeted at the existing and potential domiciliary customers with balances of $5,000 and above. Its interest rate is quite attractive and there is reduced bank charges. Only Individuals and corporates can apply for this account while Domiciliary account is an account that allows you to keep money in US Dollars, Pounds Sterling or Euro; with your money valued at the prevailing exchange rate. This account helps to facilitate your international business transactions. Only SMEs and Corporate organizations can operate this account.
Benefits of Domiciliary Account
- A minimum opening balance of $500, €500 or £300
- A minimum operating balance of $100, €100, or £50
- There is no limit to the number of withdrawals in a month
- Your cash withdrawal is at 0.5% flat per transaction
- An Inter sol transactions (account owner only) are allowed.
- A Guaranteed FCY deposit
- A pool for interest on bank fund
- There are no restrictions on the number of withdrawals
- Inter sol withdrawal (account holders only) allowed
Requirements of Domiciliary account
- A completed account Opening Form
- A completed specimen signature card
- You two (2) recent passport photographs
- An address verification document: Utility Bill
- A valid means of identification e.g. International passport, Driver’s license or National ID card.
Another bank that in Nigeria that you can open a domiciliary account with United Bank For Africa. This bank gives you a wide range of options to choose from when opening a domiciliary account with them. It also operates in major foreign currencies such as US Dollar, Pound Sterling, Euro, etc. UBA has the following domiciliary accounts; Dom Advantage Account, Dom Advantage Plus Account, Freedom Dom account and U-Care Plus Domiciliary Account.
Requirements of Dom Advantage Plus Account
- A minimum Opening and Operating Balance: $1,000, or €700 or ₤600
- For withdrawal Charge: there are zero charges once your account balance is up to minimum operating balance
- Also for transfer charge: there are zero charges once the account balance is up to minimum operating balance
- There is a compulsory swift communication charge of $25, €20 or ₤15 on all foreign transfers
Benefits of Dom Advantage Plus Account
- It has an Interest rate that is payable on the account balance
- It has a zero transfer charge
- It has zero withdrawal charge
- Also has an unlimited number of withdrawals
It is very important to check out these tips before considering to open a domiciliary account with any bank in Nigeria especially the 5 top banks mentioned above; 1. Monthly / Daily charges, transaction limits, minimum requirements, mobile and Internet banking, ATM charges and security.