We once wrote on this website how Banks In Nigeria Keep Deducting All Manners Of Charges It has really gotten out of hand!
Just yesterday, a friend was lamenting how he got over ₦4,000 as charges in the month of December 2017. His complaint is not peculiar.
It is said that little drops of water make a mighty ocean Highlighted below are some strategies I use to minimize what the banks are able to deduct from my accounts.
Clearly, you need to be smart in your banking transactions to ensure you keep as much of your money to yourself as possible.
USE YOUR SAVINGS ACCOUNT TO RECEIVE FINDS
Current account deposits from third parties of over ₦ 1,000 attract stamp duty of ₦50. Remember also that current accounts attract Commission on TurnOver COT as well as VAT on that COT.
1) DEACTIVATE SMS NOTIFICATION
If your accounts undergo lots of movements to and from, you may want to deactivate the obligatory SMS notifications on those accounts, and make use of email instead. When an account activity occurs, you receive an email (set up to be instantaneous). That’s as good as an SMS.
Simply visit your bank, and tell them to deactivate those unnecessary and money wasting SMS notification. Please note that, if you are not always online, this advice may be a bad one.
2) AVOID USING THIRD PARTY ATMs
Use the ATM of your bank whenever possible.
In a single month, if you withdraw from third party ATMs more thrice, each subsequent withdrawal costs you ₦65, along with the numerous SMS notifying you of each transaction.
An added benefit is, if there is an error in dispensing cash, it is more easily rectified since it is within the same bank.
3) AVOID USING CASH
That is, whenever possible. Make your payments electronically. Mechanics, carpenters, artisans, they are all waking up to the cashless proposition.
Most ATMachines can only dispense a maximum of ₦ 20K at a time. If you need, say, ₦80K, the SMS charges pile up (except you heeded (2) above. Point (1) above could also apply. So, use those POS, or use your bank app to transfer funds to the vendor or service provider.
4) MAKE USE OF MOBILE WALLETS
A mobile wallet is an electronic purse (app). They are getting quite ubiquitous now. Instead of being penalized with interminable SMS charges, COT and VAT on COT each time you make a miniscule transaction (like loading credit to your phone, subscribing to data, paying electricity bills, etc), you simply transfer a lump sum into an electronic wallet. Then, your transactions gradually deplete the funds in the wallet, and you avoid all those spurious bank charges. You top up your wallet as needed. Just ensure you choose a reliable and popular one.
5) Remember that transferring intra bank (within same) costs ₦25 instead of the ₦65 when done inter bank (between two different). It is something worth keeping in mind if you transfer funds very often .
6) DO YOU REALLY NEED THAT ATM CARD?
Don’t forget monthly card maintenance fee. Don’t ask for ATM Cards unless if truly needed. There is the acquisition cost and the regular maintenance fee charged!
There is also the added security for an account that doesn’t have an ATM associated with it .
7) KEEP IT IN SAVINGS.
In Nigeria savings account earn better interest than current. Thus, move money to your current account only when absolutely necessary. An account earning 10% p.a on a ₦10 Million bank balance is ₦ 1 Million a year. Not bad! In a current account, it would probably earn far less.
These are the few strategies I deploy to ensure my funds stay in my account instead of getting siphoned into the already swelling bank vaults.
Over time, the strategies save you quite a bit of funds, especially if you have very active accounts.
Yes; you can be smarter than those banks.