Current account in Nigeria – as a banker, I have a weird experience from people whenever it comes to opening a current account.

Apart from salaried workers many business men run away from Current account in Nigeria and in most cases their reasons will shock you.

Before we go into these details, please find below our sub topics of the day o the above topic – Current account in Nigeria; a review of GTBank current account Nigeria

  1. What is Current account in Nigeria?
  2. Interests rate on current account
  3. What is the benefit of current account?
  4. What are the disadvantages of current account?
  5. Conclusion
Current account in Nigeria

What is Current account in Nigeria?

This is a business account (though not limited to that) that is mostly not interest based but allows volumes of transactions to be done using it and charges commission on turn over (COT) on such high volume transactions too.

This is the account class that one can use as a loan account and this beautifully answers the question which type of account is current account?

Current accounts uses alternate channels like ATM card service which answers the question can current account have ATM card?

Current account can be operated by anyone provided that the person is over 18 years of age. You can now see the answer to the question, “who are applicable for current account”?

Finally in other to resolve the mystery on what is minimum balance in current account, please note that most current accounts have a zero operating balance.

This means that you can withdraw up to minimum of zero Naira in current account in Nigeria.

Interests rate on current account

Our attention has been drawn to these enquiries:

  1. Do any current accounts pay interest?
  2. What is the rate of interest in current account?

Current accounts are designed primarily not to attract interest due to its use for business purposes and the massive transaction expectancy rate (both debits and credit).

This is borne on the principle that even in savings account, 4 withdrawals in a month lead to forfeiture of accrued interest on the saving account in a month.

However current account pays interest on these two conditions below:

  1. When the customer did not make any withdrawal from at all in a month
  2. When a bank designed it to have interest generation attachment in other to attract customers. This second reason is born out of business growth strategy and it answers the question which bank is best for current account in Nigeria? A bank that offers you the best service, a bank that maintains a good account and system security and when their interest rate is equally reasonable…such bank should be counted as a good bank for current account.

When this happens, a current account can generate interest of up to 0.75% per annum.

What is the benefit of current account?

The benefits of owing a current account are much and they include:

  1. Increased withdrawal and deposit limit for customers
  2. The possibility of getting Interest as high as 0.75%
  3. A minimum withdrawal limit of N0.00
  4. The possibility of a 3rd party withdrawal via cheque book
  5. The possibility of cheque payment via clearing system

Having known this, please quickly discuss the:

What are the disadvantages of current account?

The disadvantages of current account are there too. Please read patiently as we list them down for you:

  1. The charging of service charge of N1,000.00 per withdrawal across the counter. Please not that this was charged as COT before but Central bank of Nigeria (CBN) reduced it drastically to N1 per transaction so Nigeria Banks changed its name to service charge. This is because CBN appears not to have the power to tell a bank how much it can charge a customer for some services it renders. This charge is the same in most Nigeria banks.
  2. The possibility of missing your monthly rate / frequency (i.e. number of withdrawals in a month) interest based on withdrawal and your banks policy on interest on current account.
  3. A minimum daily withdrawal limit of N500, 000.00 across the counter by account owner.
  4. A minimum daily withdrawal limit of N150, 000.00 across the counter by 3rd party customers and non customers.
  5. Attraction of a charge of 1% of the face value or 5,000.00 flat fee (which ever that is higher) on all clearing instrument drawn on unfunded or underfunded accounts.
Current account in Nigeria

Conclusion

Current account is very good for the purpose for which it was created. Any business man must have it irrespective of your business interest to avoid an impromptu situation that might lead to lose.

You can also read: Savings Account Interest Rate in Nigeria

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