A domiciliary account is nothing but an account that allows foreign currencies to come in and go out of it. If you do businesses with clients around the globe that could send you foreign currencies or love to carry out international transactions, a domiciliary account is your best option. Before opening a domiciliary, its best to acquire knowledge on how the account functions and possible charges that it may attract.
It is pertinent that you can open a domiciliary account in any Nigerian Bank. Simply walk in and make your way to the customer service. Tell them you want to open a domiciliary account and you will be attended to. Most bank will require the following for a domiciliary account;
- A filled application form
- Two passport photographs
- Photocopies of utility bill
- Two References who operate current account
- Initial deposit of $100 if the account will be dollars.
- Valid means of identification like your international passport, Driver’s license etc.
The Domiciliary accounts are of two types and they are savings domiciliary account and current domiciliary account. The savings domiciliary account allows her user to deposit and withdraw money in foreign currency with the use of bank teller while the current domiciliary account enables her user to use check book to issue out payment to third party in foreign currency. You may decide on which of the two types is best for you.
How To Perform Transactions On Your Domiciliary Account
Operating and performing transactions on your domiciliary account is quite easy. If you want to received money into the account, endeavour to tell the person sending the money to send it in the currency of your domiciliary account. This is one of the demerits of domiciliary account, you can only transact in one currency.
Depending on the type of your domiciliary account, you will get your alert once money comes into it. You may go to bank to make a withdrawal by filling the savings domiciliary account withdrawal slip if you open a savings domiciliary account. And if its a current domiciliary account, you can issue out checks to pay in the currency of your account.
You may visit a bureau de change (BDC) to convert your foreign currency to the Nigerian naira. You can do vice versa when you want to fund your domiciliary account as well. You can as well convert your foreign currencies to naira and vice versa in any Nigerian Bank as well.
Charges On Domiciliary Account
The domiciliary account usually attracts some form of charges especially on transactions and account maintenance but this is largely dependent on your bank and the CBN regulations. Some banks pay interest on account balance up to $10,000 for dollar domiciliary account and its equivalent on other currency account.
There are few transactions on which users of domiciliary account may be charged. This include cash Lodgement, cash withdrawal, Inward Foreign Currency Transfers, Outward Foreign Currency Transfers etc. The amount of these charges is dependent on your bank and the current regulations of central bank of Nigeria (CBN). You may find out from your bank.
For other details about domiciliary account, I will advice you visit your bank and other banks so that you can give yourself choice to make.