Prepaid Domiciliary account in Nigeria has become pretty popular today in Nigeria due to the high demand for bank accounts that can receive foreign currency.

Freelancing has become pretty popular amount Nigerian youths and a lot of them are now working for companies outside of the country. This alone has massively increased the demand for domiciliary accounts in the country.

But the question is, what kind of domiciliary account is perfect and why do people choose to use those accounts.

As a Nigerian, if you've been following the financial news in the country, you'll realize that the Nigerian Apex bank (CBN) has released so many policies that have affected or improved the banking sector, in one way or the other.

Some of these policies might favor others and others have affected the way transactions are been carried out outside and within the country.

One of the things I get to realize in all the saga going on, I discovered that most of these policies are based on assumptions because the current CBN governor is trying to increase the strength of the country's currency. While making all of these policies, they forget that so many individuals are affected by these policies.

This is why I decided to write extensively about Prepaid Domiciliary Bank Accounts Vs Traditional Domiciliary Bank In Nigeria. 

We'll look at the differences between these two types of domiciliary accounts and see which is better when it comes to receiving dollars in Nigeria.

But before we dive straight into this, I want us to look at some important things regarding domiciliary accounts in Nigeria.

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What Is a Domiciliary Bank Account?

A domiciliary account is a type of account that allows customers to send and receive foreign payments from oversea and withdraw anywhere around the world. The account has several foreign currencies enabled on it such as USD, EUR, and GBP. In some cases, you can have additional foreign currencies depending on the bank or financial company you're working with.

Some of the domiciliary accounts have limitations, which makes it difficult to receive certain currencies because the bank will want to create an account for you based on the currency you requested. This means that you'll need to create separate accounts for separate currencies such as USD, EUR, and GBP.

If you're in a country like Nigeria, you must realize that it is not currently possible for you to transfer from your local currency into your domiciliary account.


Types Of Domiciliary Bank Accounts

There are several types of domiciliary accounts you can open through your local bank or an independent financial company.

The two major ones that are common in Nigeria. The Current Domiciliary Account and Savings Domiciliary account.

Current Domiciliary Account

This account is just like the popular current account you know. The current dom account is specifically designed to serve individuals who are in a business that involves several cash inflows and outflows.

This is why account owners can issue checks to third parties on the account. But one of the disadvantages of using such an account is the high fee involved. The account attracts higher fees when compared to other types of domiciliary accounts.

Savings Domiciliary Account

The saving dom account allows you to save in foreign currencies of your choice depending on the currency type of saving dom account you're using. As a user of such an account, you can carry out withdrawals using a bank teller whenever you want. 

If you're the type that doesn't make many transactions, then this type of account is what you need for your foreign transaction.

One thing that is common between both accounts is the eligibility to receive interest on the accounts. However, the rates are not fixed due to the rise and fall of the local currency in the FX market.

For you to withdraw funds from your domiciliary account, you'll need to visit the nearest bank branch and fill out a withdrawal form in other to withdraw your desired funds from your dom account.

Upon successful withdrawal, you can then take the cash to any bureau de change office and receive local currency. 


How To Open A Domiciliary Bank Account

Opening a domiciliary bank account is very easy. All you need is some documents to back you up. Once your financial institutions are able to verify those documents you can then open a domiciliary bank account.

To open your domiciliary account at any bank in Nigeria as an individual or business entity, you'll need the following:

  • A completed account opening form is given by the bank
  • A valid proof of address such as a utility bill
  • A referee letter (2 referees)
  • A minimum account opening balance ($100) or less depending on your bank
  • A valid government identification card ( International passport, Voters card, or National I.D card)

Note: The document requirement depends on your bank. What they request varies. It will be advisable to work with your bank and make further inquiries.


Advantages Of Domiciliary Bank Account

  • Domiciliary bank account comes with advantages such as;
  • Ability to operate a fully functional foreign account 
  • The domiciliary account allows you to earn interest.
  • You get to enjoy a higher FX rate when you sell the funds in your domiciliary account to any bureau de change.

Disadvantages Of Domiciliary Bank Account

Despite it being a great account for foreign transactions, the account also has some disadvantages. Below are some major disadvantages of Domiciliary accounts.

  • You're not allowed to process withdrawals from anywhere or directly fund your account with your local currency,
  • The withdrawal fees are on the high side.
  • You need to provide 2 referees when opening an account.
  • You need to physically visit your bank branch if you want to open a domiciliary account.


Companies Offering Domiciliary Accounts

There are several companies offering domiciliary accounts in Nigeria. Below are the two most popular and reliable companies.


Banks Offering Domiciliary Bank Accounts

Almost all the banks in Nigeria allow their customers to create a domiciliary account as long as they meet the basic requirement for opening such an account. 

The best out there are GTbank, Zenith Bank, Alat, UBA, and Access Bank.


Prepaid Domiciliary Bank Account Vs Traditional Domiciliary Bank In Nigeria

You must have been eager to know which of the account is preferable when it comes to a domiciliary bank account in Nigeria. To make this short and straight to the point, the two bank accounts are great for transactions when it comes to foreign currencies.

If you intend to save in dollars, you should consider using the Nigeria traditional bank domiciliary account due to the reliability of the bank and the security of your funds by the Nigeria apex bank. This means that no matter the amount you have there, if the bank is to close today, you'll surely receive your money. However, on the other hand, prepaid domiciliary bank accounts are great for receiving the money you wish to spend but that doesn't mean it is safe to save money with them. When you use a prepaid domiciliary bank account like Geegpay.africa, you can enjoy the black market rate instead of the central bank rate which means you're making more money.

When you look at it, you'll realize that both accounts are great for receiving and sending money depending on your need.

Conclusion

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If you have any questions or inquiries, you can drop them in the comment section. We'll be happy to answer them.