Banking Tips: 7 types of bank account operated in Nigeria

Having a bank account in this new age is more of a necessity than an option. Bank accounts are even opened for little kids though kids don't have access until a certain age, but untrue as it seems, some people still don't have any bank accounts.

There are different types of bank accounts, so before going into a banking hall looking all confused, without any clue what kind of you need to open, check out the types of accounts operated by Nigerian banks

1. Savings account

This is the most common and basic account most people operate. Basically, an account just for deposits and withdrawals which make it restricted to some types of transactions. It is an interest bearing account though the interest rate is always low. Little or no cash is required to open a savings account.

2. Current account

A current account would be preferable for business because transactions on this account are limitless, unlike the savings account. A cheque book is also issued after opening a current account.

3. Fixed deposit account

Just as the name implies, this account is for a fixed period of time, a minimum period of 30 days and a maximum period of 180 days. During this period, the money deposited cannot be withdrawn until the duration elapses. The fixed account is opened by individuals or corporate clients looking to earn high interest on money invested.

4. Joint account

A joint account is opened with the name of two or more people who are all signatories to the account. Co-owning the account, no individual can make a decision on a joint account without informing the other signatory or signatories.

There are two types of joint accounts

A. Joint-tenancy mostly operated by married couples

B. Tenants-in-common mostly operated by business partners

5. Domiciliary account

A domiciliary account is opened for carrying out foreign transactions. The account can be used to transfer money to another country or receive foreign currency from other countries.

6. Corporate account

An account opened by multinational companies and big corporations. The corporate account is totally different from the personal or investment banking accounts, it is majorly opened for business purposes