Here is an article that explains how to fund your domiciliary account in Nigeria and every process involved.
What is a domiciliary account?
A domiciliary account is a type of banking account that allows an individual to fund it with foreign currencies which includes dollars, pounds or euros, which also enables you to do a foreign transaction on that account
Purpose of opening a domiciliary account in Nigeria
You can open a domiciliary account with most banks in Nigeria and can make two or more transactions from in and outside of Nigeria.
These are the benefits of having a domiciliary account:
: International Business
: saving account
: send and receive money internationally
: Online banking
: Attractive rates
- International business is the simplest way for those who transact business internationally as it enables them to make both international and domestic transactions.
- Savings account domiciliary account can also help in savings account aspects, making it easier for parents who want to save or send money for their children’s education abroad. A Domiciliary account can also be used as a savings account.
- Send and receive money internationally The domiciliary account helps in sending money across the country and also in receiving funds which may come as USD, GBP, or EUR, from another international account.
- Attractive rates Banking with domiciliary accounts is of more use to banks as it provides an attractive interest rate for banks.
- Online banking domiciliary account makes it easier for online banking, as one will gain more access to doing much online business such as mobile banking, online banking, debit card, and transactions alert through Email.
Types of domiciliary account
Domiciliary accounts are of two types so, before one would open a domiciliary account, one will have to choose from either of them the one you will go for.
- Current Dom account
- Savings Dom account
Current Dom account
This type of account is most suitable for business people who need two or more transactions to carry out. But it sometimes attracts more usage fees compared to the other type of domiciliary accounts.
Savings Dom account
This account helps one to save foreign currencies and you can still make your withdrawal with a bank teller whenever you want. This is more convenient for individuals who carry out little transactions. Therefore each of these accounts is eligible to receive interest but nevertheless, the rate is not actually fixed.
Therefore in order to withdraw funds from any Dom account. You need to visit any nearest bank branch and fill out a bank teller, once you receive the withdrawn sum in cash, you can change the sum to your local currencies in any of your desired bureau de change offices.
How to transfer money from naira account to a domiciliary account
A domiciliary account also known as “Dom account” is a type of account that doesn’t trade with naira or accept naira for exchange (Nigerian currency). But rather accept foreign currencies in exchange such as euros, dollars and pounds.
During the exchange, you can go to the bank, withdraw your money with the bank teller or with your ATM card, which you can now go to any bureau de change, and now change the naira note into a dollar note.
Requirements for opening a domiciliary account
Any individual or company are eligible to open a domiciliary account as long as they have the requirements listed below.
- An original completed account opening form is given by the bank.
- Two recent passport photographs
- Proof of address
- Referee letters
- A minimum opening balance of $100 and above.
- A government issued I D
- Completed specimen signature card
- Marriage certificate if required access.
Advantages of domiciliary account
- You can receive interest on your domiciliary savings account
- You can open a foreign account and also receive payment in foreign currencies.
- You can stand as a referee for other people who are interested in owning a domiciliary account
- A master card will be issued to you once you are through with the account opening, which makes it easy to pay for international transactions online.
Disadvantages of domiciliary account
- You are restricted to one type of currency per account. It also implies that a Dollar account has a high withdrawal commission
- You can’t open the account online rather you will have to physically visit a branch to open an account
- You can not process withdrawals from anywhere or directly fund your account with your local currency.
Best bank to open a dollar account in Nigeria
A lot of foreign currency earners and freelancers are already asking about the best bank in Nigeria to operate a domiciliary but after my research based on bank performances I recommend the following banks below:
- GTU Bank
- First Bank of Nigeria
- Keystone bank
- Access bank
The listed institutions above are my top five banks to start operating a Dom account with
How do I fund my GTB domiciliary account?
Traveller’s checks, foreign currency check deposits, as well as cash inflows and deposits, can all be used to fund a dollar account. Additionally, you can withdraw money from any GTBank branch. Through our different e-channels.
Hope this resource was helpful, on how to transfer money from a naira account to a domiciliary account. Please kindly share others.