Banks will steal your money, like it or not.

When I was in primary school we were taught in social studies and in arithmetics (simple and compound interest) that the best way to save money was by keeping it in the bank. Our teacher told us that keeping money in banks gave the customer the opportunity to have extra money added to his deposit in form of interest.

This was music to my ears then as I could not wait to own my own bank account. All these seem to have changed lately as the bank seem to deduct whatever interest your capital has accrued and even far more – a case of loss canceling gain.

Just on the 20th of January 2016 the CBN directed commercial banks to commence a charge of N50 for stamp duties on every electronic transfers and teller deposits of N1000 and above. The CBN said

“As part of efforts to boost its revenue base, the federal government of Nigeria is exploring revenue opportunities in the non-oil sectors especially taxes and rates”.

“For all avoidance of doubt the following receipts are however exempted from imposition of stamp duties: payments of deposits or transfer by self to self whether inter or intra bank; and any form of withdrawals/transfers from saving accounts”

“It should also be noted that these charges are only payable by receiving accounts”

Meaning whenever someone sends money into your account N50 will be removed from your balance, so if I send my kid brother N5000 he would get N4950,

50 naira

It is well o.

Before this one came on board banks have always been creative in the ways the steal our monies, lets just list a few obvious ways;

  • Getting new atm card – N1000 : Most banks have become so efficient in this regards that as the expiration date of the previous card approaches they would automatically deduct N1000 and get your card ready, but guess what – its just plain stealing because except the chip on the ATM card is faulty the ATM card has no reason to stop walking or expire, but the banks program them to stop functioning so you would be forced to pay for another one. Imagine a situation were your phone sim card has to be renewed every 2 or 3 years.deolaonline, money, naira cbn,
  • Account maintenance fee – N250 : The first time I noticed this was in March so I cant say if they charge this every month, quarter or  year. Mine is a current account so maybe its peculiar to current accounts. Meaning my bank charges me for holding my money after all the profit they have made from my money in the first place

  • VAT on Account maintenance fee (5% of account maintenance fee) – Toh the tax the government collects due to the bank “maintaining” my account also comes from my money.

  • Atm annual card maintenance fee – N100 : Seriously how does the bank maintain my ATM when its in my wallet? If anyone should pay for maintenance the bank should pay me.

  • VAT (5% on ATM maintenance charge) on card maintenance – N5 : I no fit shout abeg, just imagine

  • COT charges if u operate a current account depending on transactions: People who operate current accounts can easily relate to this. COT is a charge the bank places on every transaction on your current account whether deposit or withdrawal and the more of these activities the more the charge, deductions are often in the hundreds or thousand of Naira monthly.

  • VAT (5% on COT charge) on COT : Just like the VAT charges on ATM maintenance I just cant shout please.

  • SMS charges also depending on monthly transactions: This one makes small sense because i would wanna know when anything touches my money, but chai banks can foot that bill na, must I pay for everything?

  • Counter Cheque Charges – N200: This one happened one day when Firstbank’s network was so bad, the ATM refused to dispense, I seriously needed cash and wasn’t with my cheque book. So I filled a withdrawal slip make my withdrawals, next thing ; Alert debit of N200 – labelled as “Counter Cheque Charge”.

  • Interbank Transfer while using the bank ATM or Online Platform: This one to me is annoying because with this option the customer is basically doing the job of the banker or teller at the bank yet I still have to pay the bank for doing its work. If anyone should get paid here I think it should be the customer.download

With all these broad daylight theft, customer confidence in banks will keep reducing, the only reason any one keeps money with banks now is so burglars and robbers wont take it from under his pillow.

Kindly add to my list if you remember other way they have been charging you.

 

3 comments for “Banks will steal your money, like it or not.

  1. eye_bee_kay
    January 21, 2016 at 5:25 pm

    But it is the plain truth.. these multiple deductions..

    But then, while banks are unnecessary, banking is. A necessary”evil”.

    We will just need to continue being creative in minimizing how much the banks can (il)legitimately keep dedicating.

    Na so!

    • WillyWest
      January 22, 2016 at 10:26 am

      Very true.

  2. January 25, 2016 at 7:47 pm

    With the decline in oil revenue,it is only logical for the government to look for more sources of income. Taxation is one thing we are not so used or we prefer to avoid in Nigeria. Reason being that whatever is collected never got to the government. They end up in the collector’s pocket. Examples abound to show this. Recent discoveries by the government has also proved this to be true. To my mind, there is nothing wrong in the N50 tax on transactions.

    Problem with taxation in Nigeria is the payers never get returns for their money. In US for instance, in addition to the infrastructural amenities etc that your taxes brings you, you also get some percentages back yearly in form of tax returns.

    I agree with taxation but vehemently opposed to multiple taxation as practised by our local and state governments.

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