Lockdown: Know Your Different Bank Charges (FIP, Stamp duty, ATM Withdrawals etc)
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The central bank of Nigeria has released a set of guides to assist the government in pursuing her financial dreams. Listed below are some of the amended guides as at 1st January, 2020 to making your banking dreams a lot easier. However, these only apply to financial institutions. Other non-financial institutions such as microfinance banks have their own unique guides.
1. Current Account Maintenance Fee (CAMF): Negotiable at different banks subject to a maximum of N1 per mille. Applicable ONLY to current account holders.
2. Collection Charge on Cheques: 1% of cheque value or Naira equivalent of US $10, whichever is lower
3. Bank Drafts (Customers):
Current Account – N300
Savings Account – N500
4. Bank Drafts (Non-Customers):
N500 + 0.1% of Draft value
5. Internet Banking:
Hardware Token: Cost recovery subject to a maximum charge of N2,500
Software Token – One Time Password (OTP): No charge. However, where the OTP is sent to the customer via SMS, charges will be on cost recovery basis
Bills Payment (Including Bills Payment through other E-channels): Negotiable subject to a maximum of N500 per beneficiary payable by the sender
6. Electronic Funds Transfer:
Below N5,000: N10
N5,001 - N50,000: N25
Above N50,000: N50
7. Credit and Debit Card Charges:
Issuance Fee: N1,000 (one-off charge). The same charge applies irrespective of card type (i.e. regular or premium card). Same as Replacement and Renewal Fees (Upon expiry of existing cards).
Interest Charges: Negotiable
Prepaid Card Loading/Unloading: No charge
8. ATM Transactions:
On-Us (withdrawal from issuing bank's ATM): No charge
Not On-Us (withdrawal from other bank's ATM) in Nigeria: N35 after the third withdrawal within the same month
International Withdrawals (per transaction) whether debit/credit card: Exact cost by international acquirer (cost recovery)
9. Transaction Alerts:
SMS alert (Mandatory) However, where a customer opts not to receive SMS alert, the customer should issue an indemnity (for losses that may arise as a result) to the bank: Cost recovery (on customer-induced transactions). No charge for bank-induced transactions.
Email notification: No charge
10. Use of Unstructured Supplementary Service Data (USSD): Current NIP charges apply
Purchase with cash-back: N100 per N20,000 subject to cumulative N60,000 daily withdrawal
11. Reactivation of Accounts: No charge
12. Closure of Account (savings, current, or domiciliary): No charge
13. Insurance Premium paid on behalf of customers: Exact Premium (customer to choose from a list of at least 3 insurance companies to be recommended by the bank)
14. Issuance of Statement of Account:
Mandatory Monthly Issuance of Statement of Account on Current and Savings Accounts: No charge
Special Request for Statement of Account (request in a manner other than agreed on mandatory issuance: Maximum of N20 per page
15. Returned Cheques:
Due to reasons other than the account being unfunded: No charge
Due to the account being unfunded: 1% of amount or N5,000 whichever is higher (to be borne by drawer only). This is without prejudice to the Dud Cheque Act
16. Intra-bank Cash Deposits/withdrawals within limits approved by the CBN: No charge
17. Cost of Cheque Books:
Cheque Books: Cost recovery
Counter Cheque: N50 per leaflet
18. Advisory/Consultancy fee: Negotiable (only applies where there is a written advisory/consultancy agreement between the bank and the customer)
19. Cashless Policy:
Cash deposit: 2% for transactions above N500,000
Cash withdrawal: 3% for transactions above N500,000
Cash deposit: 3% for transactions above N3,000,000
Cash withdrawal: 5% for transactions above N3,000,000
20. The Amended Finance Act imposes a stamp duty of N50 on all electronic receipts / transfers above N10,000 for all types of account (current and savings).
21. Financial Inclusion Plan (FIP) charges are charges incurred by making e-transactions with other banks as issued by the First Bank of Nigeria (See tweet below). Charges depend on the bank and negotiable.
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I hope this information will help you deal wisely with your bank and finance especially in this lockdown period when finance is highly needed.
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