In this post, you will know somethings about domiciliary account, the reasons why you need one, required instructions, documents and places where you can open the account.
The Nigerian banking industry has evolved in the use of information and communication technology to fulfill the needs of their customers.
One of the ease that come with the advent of deep usage of information and communication technology by Nigerian banks, is the removal of the usual stringent measures needed to open a domiciliary.
What is a domiciliary account????
By the way, a domiciliary account is the one whose currency of savings and withdrawal is a foreign currency.
That means a domiciliary account may be dollar denominated, pound sterling denominated or Euro denominated etc.
A dollar denominated account cannot be used to save either Euro or Pound sterling.
That is the reason why a domiciliary account is an exclusive bank account.
How to Open Domiciliary Account in Nigeria: Steps and documents needed
Features of a domiciliary account
Domiciliary has the following features:
- The account accept payments in foreign currency and bank cheque
- Traveler’s cheque
- Cash deposits
Reasons why you need a Domiciliary account in Nigeria?
The reasons why you need a Dorm account may vary from person to person. Obviously, if you need to transact in dollar or other foreign currency, you will need one.
Other reasons why you may need a Dorm account are:
- Receiving payment from people or companies domiciled outside of Nigeria:
If you engage in online money making business like mine, if you rely on the use of your local
Naira bank account to receive dollar or other currencies, Your money will be automatically converted from the source currency to Naira.
This way, you may lose some of your money to the banking exchange rate.
However, if you receive the same money using domiciliary account, let’s say dollar to a dollar based Dorm account, you can withdraw the money in the banking hall in dollars here in Nigeria.
Then you can proceed to the black market where you can exchange your money at a much higher rate compared with the existing official exchange rate.
This basic knowledge is important for someone like you who is into online business.
This is because if you don’t have a Dorm account, how would you receive payments from advertising networks like as Google AdSense, Facebook, Skrill, shareholic, Neteller and more.
Without any iota of doubt, you will need a domiciliary account to enjoy making money online in Nigeria.
- Saving your money in a foreign currency
There is no doubt that saving in foreign currency in Nigeria a sensible way of keeping you money in bank.
The events of what is happening to Naira for the past twenty years show that the value of Naira will be fluctuating with response to the foreign market and inflation rate.
Therefore, to have the best value of your money, you must open a Dorm account.
How to open a domiciliary account in Nigeria
To open domiciliary account in Nigeria in 2017, you don’t need to worry much as banks are also looking for people like you who will help them improve their dollar savings.
So relax just make sure you have all the documents listed below:
- Recent passport photographs: the number you need depends on your choice bank. You may prepare minimum of 2 and a maximum of 6. Make sure the passport is very recent.
- Proof of residence: Nigerian banks are used to utility bills like PHCN bill
- Valid proof of identification (identity card): if you have National ID card or drivers’ license or International Passport, you are good to go.
- Bank Verification Number (BVN): this number is very important, so if you don’t have one, try to visit any bank to get one. However, if you already have a BVN, you are in save hands.
- Initial deposit: before you can be allowed to open a Dorm account, you must deposit a minimum of $100 cash.
Where you can open domiciliary account in Nigeria
Majority of the Nigerian commercial banks have domiciliary account package.
All you need is to walk into any bank with the listed documents and approach the officials there for opening a domiciliary account.
Let me know if this lesson was helpful.
Thank you for being there