Eight (8) types of bank accounts in Nigeria

There are various types of bank accounts in Nigeria. However, many commercial banks, microfinance banks, and fintech are building several of their products around the primary bank accounts. There are savings, current, and fixed deposits accounts. However, there can be a blend of savings and fixed deposit accounts in some cases. Financial technology (fintech) companies are mixing technology to it. In this article, we explained these accounts.

Individual accounts

These accounts are owned by a single individual. Savings, domiciliary, and fixed deposits accounts. They can be created via banking platform. The requirement can be as simple as your NIN or BVN along with a passport. While others may require utility bill as part of the requirement. The tier of account also affects the requirement. 

Banks usually provide a withdrawal booklet for cash withdrawal. Also, the individual can request a debit card for withdrawal via POS and ATM machines. An individual account can be mixed with a call and domiciliary accounts. An example is a Stanbic IBTC account product that combine individual, fixed deposit and domiciliary features.

Corporate accounts

A type of bank account that is operated by companies both small and large. Corporate accounts are usually established for a company by the management. A minimum of two management executives are required to be signatories to the bank account.

 This implies that before money can be withdrawn from the account, the two signatories must sign the withdrawal. Banks do not allow the use of debit cards for withdrawal in a corporate account. However, a cheque book or withdrawal booklet is used as well as online platform that allows two staff to carry out withdrawal operations. One staff will initiate the transaction while the other will authorize it.

Joint accounts

In a joint account, a minimum of two persons operates the account. It is usually opened by cooperative societies and families that wants the husband and wife to have access to the same accounts. It can be a savings account, fixed deposit, current or domiciliary account. Depending on the bank’s product and what the customer of the bank wants.

Just as in corporate account, a minimum of two signatories are required. Therefore, a debit card cannot be issued to a joint account holder by the bank. Online banking platform can be access in similar way as the corporate account. 

Domiciliary bank account

This is a bank account in a particular currency other than the home currency. There can be a dollar domiciliary account or a Great Britain pound (GBP) Domiciliary account. Banks can differentiate this account by mixing it with other products. For example, it can be mixed with fixed deposit account and savings account.

Fixed deposit account

This is also referred to as ''call account''. It is an account used to save money by individuals, corporate, or joint types of bank accounts for a fixed period of time. The goal is to invest it and earn an interest from it. Banks usually reinvest them in treasury bill, which makes it a risk-free investment account.

Esusu account

The Esusu account is a special type of account. It is a product of microfinance bank. Access bank has a product similar to this. The Esusu account allows individuals to save part of their income on a daily basis. This is a special type of savings account. The bank will collect a commission from the account at the end of the month. 

For example, if an individual plans to save 1000 Naira on a daily basis on this account, the bank will collect 1,000 Naira from the account at then end of the month and give the account holder the balance. Some banks may prefer to give an interest to holders of these account than to collect a commission from them.

Savings account

Here individuals save money regular. Savings account allow individuals to keep their excess money safely in the bank. The requirement to open this account is similar to others. A savings account cannot be used to collect loan at a bank. It can come in different forms. Such as an Individual, corporate, joint, or domiciliary accounts.

Current account

A current account is a type of bank account that allows the use of cheques. Holders of these account can access loans and overdraft facilities. Banks can also mix this account with other types of bank accounts to attract customers. Most current account attracts account maintenance fees. However, there are zero interest on depositing money to the accounts.