10 Ways to Avoid Excessive Bank Charges in Nigeria
In Nigeria, various fees – from card maintenance to transfer charges – can eat into your savings or earnings if not carefully managed. By choosing suitable banking products and optimizing transactions, you can significantly reduce these costs. Below are ten practical tips to keep your bank charges low.
1. Choose a Zero or Low-Fee Account
Why It Helps
Banks often have specialized account types (like savings or “salary” accounts) with minimal monthly or ledger fees. Picking one that aligns with your transaction habits is a key step to cutting costs.
Tips
- Compare Different Banks: Seek out official fee schedules on websites or at branches.
- Review Requirements: Some banks waive fees if you maintain a certain balance or if your salary is paid into the account.
2. Leverage USSD Codes Over ATM Withdrawals
Why It Helps
Using short USSD codes for transfers or bill payments can be cheaper than frequent ATM usage, which might incur withdrawal fees after a few free transactions.
Tips
- Know Your Free Withdrawal Limit: Many Nigerian banks allow a few free ATM withdrawals monthly before charging.
- Use USSD for Quick Payments: Transferring money via *XXX# codes might cost less than repeated ATM visits.
3. Use Online Banking and Mobile Apps
Why It Helps
Internet banking or official bank apps often offer reduced transfer fees compared to in-branch deposits or teller-assisted transactions.
Tips
- Set Up Mobile Banking: Activate your bank’s app to handle everything from money transfers to bill payments.
- Check for Reduced Online Transfer Charges: Some banks offer discounted rates for e-transactions compared to USSD or ATM usage.
4. Avoid Unnecessary SMS Alerts
Why It Helps
Frequent SMS alerts can accumulate monthly fees. Some banks in Nigeria charge for both debit and credit alerts.
Tips
- Opt for Email Alerts: Many banks allow free email notifications instead of paid SMS alerts.
- Consolidate Alerts: Some accounts bundle multiple transactions into fewer SMS messages, reducing charges.
5. Monitor Your Account Regularly
Why It Helps
Regularly reviewing your statements or transaction history helps you catch hidden fees or incorrect charges early.
Tips
- Check Online Statements: Most banks offer free e-statements. Look for unexpected fees or charges.
- Query Suspicious Debits: If you see an unknown “maintenance fee” or unusual transaction cost, contact customer care immediately.
6. Limit Inter-Bank Transfers
Why It Helps
Sending money to accounts in different banks often carries higher fees than intra-bank transfers.
Tips
- Consolidate Banks: Where possible, maintain the same bank as family members or frequent transaction partners to avoid inter-bank fees.
- Use Aggregator Apps or Fintech Services: Some third-party payment apps occasionally waive or reduce transfer charges as a promotional incentive.
7. Avoid Over-The-Counter Services
Why It Helps
Certain banks charge extra for teller-based transactions or for depositing checks. Using digital channels can minimize or eliminate these fees.
Tips
- Deposit via ATMs or Online: Many modern ATMs accept deposits without physically going to a teller.
- Use Mobile Cheque Deposit: If your bank offers it, scanning checks via your phone can sidestep teller fees.
8. Know the “Stamp Duty” Limits
Why It Helps
Stamp duty in Nigeria applies to certain account types and transaction values. Understanding these thresholds can help you structure payments to avoid charges when possible.
Tips
- Check Current Threshold: Usually, a flat charge applies on transactions beyond a certain amount (e.g., N10,000).
- Split Larger Transfers: Breaking a single large transfer into two or more smaller ones might reduce or avoid stamp duty in some scenarios (be sure it remains cost-effective with other fees in mind).
9. Negotiate Account Bundles (If You’re a High Transactor)
Why It Helps
Some banks offer special account packages with fixed monthly fees covering a certain number of free transfers or services—ideal for businesses or individuals with large or frequent transactions.
Tips
- Ask Your Relationship Manager: If you’re a premium or salary account holder, banks might waive certain fees or negotiate a lower monthly bundle.
- Compare Packages: Weigh the monthly bundle’s cost against your typical fees to see if you come out ahead.
10. Keep Tabs on New Policies or Promotions
Why It Helps
The Central Bank of Nigeria (CBN) periodically revises bank charges and fee guidelines. Also, banks run campaigns or short-term promos reducing transfer fees.
Tips
- Follow CBN Circulars: Ensure your bank’s fees comply with the latest CBN guidelines.
- Check Bank Newsletters: Banks sometimes slash fees to encourage e-banking or to promote new services.
Final Thoughts
Avoiding excessive bank charges in Nigeria requires proactive steps—choosing the right account, embracing digital tools, and staying informed about fee changes or promotions. By combining these tactics, you can significantly reduce the small yet cumulative costs that eat away at your earnings, and ensure you keep more of your money in your own pocket.
