The Common Bank Charges In Nigeria You Must Know In 2023
Posted: May 22nd, 2023, 2:45 pm
Are you a Nigerian banking customer? Are you planning to use banking services in Nigeria in 2023 and beyond? It’s important to understand the most common bank charges before making any financial decisions.
Most people don’t know that there are many different fees associated with using banks in Nigeria. From ATM fees to account maintenance fees, bank charges can add up quickly and have a serious impact on your budget. Knowing the most common charges and how they work can help you make better financial decisions and save money in the long run.
In this article, we will explore the most common bank charges in Nigeria for 2023 and beyond. We will discuss how they work, what happens if you don’t pay them on time, and some tips on how to avoid them altogether.
Monthly Maintenance Fees: The Cost of Having a Bank Account
When it comes to bank charges in Nigeria, one of the most common expenses is the monthly maintenance fee. This is essentially the “rent” you pay for having an account. It covers the cost of administration and other services, such as customer service and access to a wide range of financial products. Generally, this fee ranges from NGN 500-2000 per month depending on the kind of account you have.
The other fees associated with having a bank account in Nigeria include:
Transaction fees: Usually charged when making withdrawals from ATMs within or outside Nigeria, and for payments made online or over the phone. These can range from NGN 30 to NGN5000 depending on how much money you are withdrawing.
Failed transaction fees: If your online payment or card payment fails due to insufficient funds or incorrect information, you may incur a failed transaction fee of anywhere between NGN 100 and NGN 1000.
Cash deposit fees: It’s common for banks in Nigeria to charge up to 2% on deposits made into an account using cash. However, this fee does not apply to deposits made using electronic methods such as direct transfers from your phone banking app or bank website application.
ATM Charges: Fees for Withdrawing Your Own Money
These days, it can feel like your own money is making you pay. ATM charges are an example of this. In Nigeria, ATM charges refer to the fees you may need to pay for withdrawing cash from an automated teller machine (ATM). ATM charges vary depending on the type of card you use and the bank that owns the ATM.
For example, if you withdraw money from a First Bank ATM with a First Bank card, there may be no charge or a minimal charge. But if you use an Access Bank card to withdraw money from a First Bank ATM, there is likely to be a slightly higher fee associated with the transaction.
In some cases, these fees can be quite expensive: up to N35 per transaction in certain cases. However, some banks do offer their customers free withdrawals at selected ATMs or when specific conditions are met, so be sure to research your bank’s own terms and conditions to see how they apply to you.
Overdraft Charges: The High Cost of Spending More Than You Have
Overdraft charges are one of the most expensive fees imposed by banks in Nigeria. An overdraft occurs when you spend more money from your account than what is currently available, leading to a negative balance. Banks will impose an overdraft fee for this activity, which is typically much higher than the fees charged on other banking activities.
It is important to be aware of these fees and understand how they are calculated. Typically, banks will charge you a set fee for each overdraft transaction and/or a percentage of the amount you have exceeded your account balance by. Additionally, some banks may charge you daily or monthly fees for keeping an overdraft, on top of any other charges associated with overdrawing your account.
It is important to note that not all banks in Nigeria enforce overdraft charges, so it is always best to do your research before opening an account with a new bank and make sure that they do not impose these fees. Additionally, if you find yourself with a negative balance due to an accidental overspend, many banks will waive the fee as long as you are able to bring your account back into the black before the next statement cycle.
Funds Transfer Fees: Charges for Moving Money Around
When you need to transfer funds from one account to another, or from one bank to another, you will have to pay a fee. It can be difficult to keep track of how much the fees are for different transactions, but it's important to know them in order to make informed financial decisions.
In Nigeria, the most common charges for transferring funds include:
Local Fund Transfer (Inter-Bank): This fee is charged when you want to transfer funds from one bank account in Nigeria to another. The fees may vary depending on the amount being transferred but they typically range from ₦10 - ₦50 per transaction.
International Fund Transfer: When sending money abroad, banks often add their own fees as well as charges from SWIFT (Society for Worldwide Interbank Financial Telecommunication). The fees will depend on the amount being sent and may include a commission up to US$30 per transaction as well as foreign exchange costs.
Mobile Money Transfers: Mobile money transfers are becoming increasingly popular in Nigeria and may be subject to varying fees depending on the provider. Generally, these fees range from ₦50 - ₦100 per transaction and will often increase with larger amounts of money being sent.
It is important that you understand these charges before making any payments or transfers. Knowing the expected bank charges ahead of time can help you budget accordingly and avoid any unexpected costs.
Cheque Book Charges: Fees for Writing Cheques the Old-Fashioned Way
When you require physical cheques for payments, you may be charged a fee for using them. This is what is known as a Cheque Book Charge and it can vary from bank to bank.
The fees are usually calculated based on the number of cheques per book, the number of books ordered and the amount of money you plan to transfer. Generally, banks in Nigeria charge anywhere between N100 and N350 for each cheque book.
It’s important to check with your bank regarding their exact fees as they may vary depending on the size of the cheque book ordered or other factors. Also keep in mind that some banks may offer discounts if you order a larger number of books, so it pays to shop around and compare different banks.
Overall, cheque book charges are an unavoidable part of banking in Nigeria but they don’t have to be exorbitant. Make sure you know exactly how much your bank will charge you for a cheque book so that you can make the best decision for your money.
Statement Charges: The Price You Pay for Seeing Your Own Transaction History
Once you've opened a bank account, it's important to stay up to date on your transactions and balances. To do this, most banks in Nigeria will provide you with the ability to generate monthly or quarterly statements of your activities. While this is incredibly useful for staying organized and compliant with banking regulations, there is usually a cost attached for such a service.
Statement charges are the fees you pay for being able to see your own transaction history for a given period of time. Depending on the type of account you have and which bank it’s with, these charges can vary significantly; ranging from a few hundred Naira to a thousand or more. Additionally, these fees may be charged monthly or quarterly depending on how often you request statements.
To avoid unnecessary charges associated with viewing your own transactions, be sure to keep an accurate record of all transactions throughout the month or quarter so that you know exactly what is going on in your accounts without having to pay for additional printed statements.
Other Fees Include;
SMS/Email Alert Charges: Banks often charge a fee for sending SMS or email alerts for transactions and account updates.
Card Maintenance Fee: Some banks charge a monthly or an annual fee for maintaining debit or credit cards. The fee can vary depending on the type of card and the bank.
Account Closure Fee; If you decide to close your bank account, there might be a fee involved. The amount can vary depending on the bank and the type of account.
Conclusion
Understanding the most common bank charges in Nigeria in 2023 can help individuals and businesses avoid unnecessary costs. It is important to know the fees associated with your banking activities as well as the associated regulations. Moreover, understanding the charges in relation to your banking needs can help you make informed decisions about where you put your money. In the end, banks are businesses and their aim is to make money so it pays to be aware of the charges associated with your banking activities in order to ensure you are making the best decisions for your financial situation.
Most people don’t know that there are many different fees associated with using banks in Nigeria. From ATM fees to account maintenance fees, bank charges can add up quickly and have a serious impact on your budget. Knowing the most common charges and how they work can help you make better financial decisions and save money in the long run.
Monthly Maintenance Fees: The Cost of Having a Bank Account
When it comes to bank charges in Nigeria, one of the most common expenses is the monthly maintenance fee. This is essentially the “rent” you pay for having an account. It covers the cost of administration and other services, such as customer service and access to a wide range of financial products. Generally, this fee ranges from NGN 500-2000 per month depending on the kind of account you have.
The other fees associated with having a bank account in Nigeria include:
Transaction fees: Usually charged when making withdrawals from ATMs within or outside Nigeria, and for payments made online or over the phone. These can range from NGN 30 to NGN5000 depending on how much money you are withdrawing.
Failed transaction fees: If your online payment or card payment fails due to insufficient funds or incorrect information, you may incur a failed transaction fee of anywhere between NGN 100 and NGN 1000.
Cash deposit fees: It’s common for banks in Nigeria to charge up to 2% on deposits made into an account using cash. However, this fee does not apply to deposits made using electronic methods such as direct transfers from your phone banking app or bank website application.
ATM Charges: Fees for Withdrawing Your Own Money
These days, it can feel like your own money is making you pay. ATM charges are an example of this. In Nigeria, ATM charges refer to the fees you may need to pay for withdrawing cash from an automated teller machine (ATM). ATM charges vary depending on the type of card you use and the bank that owns the ATM.
For example, if you withdraw money from a First Bank ATM with a First Bank card, there may be no charge or a minimal charge. But if you use an Access Bank card to withdraw money from a First Bank ATM, there is likely to be a slightly higher fee associated with the transaction.
In some cases, these fees can be quite expensive: up to N35 per transaction in certain cases. However, some banks do offer their customers free withdrawals at selected ATMs or when specific conditions are met, so be sure to research your bank’s own terms and conditions to see how they apply to you.
Overdraft Charges: The High Cost of Spending More Than You Have
Overdraft charges are one of the most expensive fees imposed by banks in Nigeria. An overdraft occurs when you spend more money from your account than what is currently available, leading to a negative balance. Banks will impose an overdraft fee for this activity, which is typically much higher than the fees charged on other banking activities.
It is important to be aware of these fees and understand how they are calculated. Typically, banks will charge you a set fee for each overdraft transaction and/or a percentage of the amount you have exceeded your account balance by. Additionally, some banks may charge you daily or monthly fees for keeping an overdraft, on top of any other charges associated with overdrawing your account.
It is important to note that not all banks in Nigeria enforce overdraft charges, so it is always best to do your research before opening an account with a new bank and make sure that they do not impose these fees. Additionally, if you find yourself with a negative balance due to an accidental overspend, many banks will waive the fee as long as you are able to bring your account back into the black before the next statement cycle.
When you need to transfer funds from one account to another, or from one bank to another, you will have to pay a fee. It can be difficult to keep track of how much the fees are for different transactions, but it's important to know them in order to make informed financial decisions.
In Nigeria, the most common charges for transferring funds include:
Local Fund Transfer (Inter-Bank): This fee is charged when you want to transfer funds from one bank account in Nigeria to another. The fees may vary depending on the amount being transferred but they typically range from ₦10 - ₦50 per transaction.
International Fund Transfer: When sending money abroad, banks often add their own fees as well as charges from SWIFT (Society for Worldwide Interbank Financial Telecommunication). The fees will depend on the amount being sent and may include a commission up to US$30 per transaction as well as foreign exchange costs.
Mobile Money Transfers: Mobile money transfers are becoming increasingly popular in Nigeria and may be subject to varying fees depending on the provider. Generally, these fees range from ₦50 - ₦100 per transaction and will often increase with larger amounts of money being sent.
It is important that you understand these charges before making any payments or transfers. Knowing the expected bank charges ahead of time can help you budget accordingly and avoid any unexpected costs.
Cheque Book Charges: Fees for Writing Cheques the Old-Fashioned Way
When you require physical cheques for payments, you may be charged a fee for using them. This is what is known as a Cheque Book Charge and it can vary from bank to bank.
The fees are usually calculated based on the number of cheques per book, the number of books ordered and the amount of money you plan to transfer. Generally, banks in Nigeria charge anywhere between N100 and N350 for each cheque book.
It’s important to check with your bank regarding their exact fees as they may vary depending on the size of the cheque book ordered or other factors. Also keep in mind that some banks may offer discounts if you order a larger number of books, so it pays to shop around and compare different banks.
Overall, cheque book charges are an unavoidable part of banking in Nigeria but they don’t have to be exorbitant. Make sure you know exactly how much your bank will charge you for a cheque book so that you can make the best decision for your money.
Statement Charges: The Price You Pay for Seeing Your Own Transaction History
Once you've opened a bank account, it's important to stay up to date on your transactions and balances. To do this, most banks in Nigeria will provide you with the ability to generate monthly or quarterly statements of your activities. While this is incredibly useful for staying organized and compliant with banking regulations, there is usually a cost attached for such a service.
Statement charges are the fees you pay for being able to see your own transaction history for a given period of time. Depending on the type of account you have and which bank it’s with, these charges can vary significantly; ranging from a few hundred Naira to a thousand or more. Additionally, these fees may be charged monthly or quarterly depending on how often you request statements.
To avoid unnecessary charges associated with viewing your own transactions, be sure to keep an accurate record of all transactions throughout the month or quarter so that you know exactly what is going on in your accounts without having to pay for additional printed statements.
Other Fees Include;
SMS/Email Alert Charges: Banks often charge a fee for sending SMS or email alerts for transactions and account updates.
Card Maintenance Fee: Some banks charge a monthly or an annual fee for maintaining debit or credit cards. The fee can vary depending on the type of card and the bank.
Account Closure Fee; If you decide to close your bank account, there might be a fee involved. The amount can vary depending on the bank and the type of account.
Conclusion
Understanding the most common bank charges in Nigeria in 2023 can help individuals and businesses avoid unnecessary costs. It is important to know the fees associated with your banking activities as well as the associated regulations. Moreover, understanding the charges in relation to your banking needs can help you make informed decisions about where you put your money. In the end, banks are businesses and their aim is to make money so it pays to be aware of the charges associated with your banking activities in order to ensure you are making the best decisions for your financial situation.
