Do you want to become an international digital marketer who will be receiving and sending money across the boarders? In this article, I will discuss with you all types of domiciliary account with their advantages, how to choose the best one, their opening requirements and how to open any one step by step.
The domiciliary account is the type of account which can be opened with any of the three mostly used international currencies (Dollar, Pound and Euro) purposely used to send and receive an international payment anytime, everywhere. Want to know the types of domiciliary account and their advantages and how to open them? Let’s start if yes!!
Types of Domiciliary account
Savings domiciliary account and Current domiciliary account.
If you are to open a domiciliary account in Nigeria, please note that there are two types of domiciliary account which a person can operate in Nigeria and they are Savings domiciliary account and Current domiciliary account.
- A savings domiciliary bank account is a foreign currency account that allows the person to save money in foreign currencies and be able to withdraw it using a bank teller.
- A current domiciliary bank account on the other hand is like a current account, and businesses or businesspersons normally use it.
Saving domiciliary account is a type of account that can do about the same things like a savings account and with the ability to issue cheques to third parties.
A current domiciliary account attract more fees for usage than a savings domiciliary account.
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Types of UBA domiciliary accounts
Freedom Savings Domiciliary Account and Kiddies Domiciliary Account.
The two types of UBA domiciliary account are discussed below with their advantages, how to open them and their opening requirements.
#1. Freedom Savings Domiciliary Account
You can with UBA open the Freedom Savings domiciliary account with zero opening balance. The only requirement for this account is BVN.
Opening this type of domiciliary account with UBA will allow you to receive remittances directly into your account. You can check your account balance and transaction history via the mobile app and internet banking platform. You can access your cash when you visit any UBA branch.
Requirements
Requirement: BVN only.
Advantage
With a minimum opening balance of $ 50, € 50 or ₤ 50 you can open a Dom Advantage Account. This account can be the Savings variant or the Current account variant. It is available in USD, GBP and EURO.
Opening requirements
- Valid Identification (International Passport, Driver’s License, National ID card Voter’s card).
- Utility Bill.
- A Passport photograph.
- References.
#2. Kiddies Domiciliary Account
Kiddies Domiciliary Account was created for parents who want to save for their children’s secondary/tertiary education abroad. With more and more students trooping overseas to study, the best way to secure you child’s future financially is to save in a foreign currency which isn’t prone to depreciation. With an opening balance of $100 or £70 or its equivalent and an operating balance of £350 or its equivalent, you’re good to go.
Requirements
- Valid Identification of Parent/Guardian.
- Two Passport photographs of child and parent.
- Child’s birth certificate.
- Address verification of the parent/guardian.
Types of Zenith bank domiciliary accounts
Zenith bank is one of the best commercial banks in Africa recommended for opening domiciliary account. It has two types of domiciliary account for both saving and current domiciliary account.
Two types of Zenith bank domiciliary account are Ordinary Domiciliary Account and Cash Domiciliary Account.
#1. Ordinary Domiciliary Account
Need a foreign currency account? Our domiciliary accounts give you the opportunity to conveniently carry out foreign transactions wherever you may be. With access to our debit cards, internet banking, and mobile banking application, your transfers, payments, standing orders etc. can be done without you walking into our banking halls.
Features
- Internet Banking
- Debit Card (USD)
- Mobile banking
- Email/SMS Alertz
- Standing orders
- USD, GBP & EUR.
REQUIREMENTS
- Account opening form (existing account holders with full
documentation only require a written letter or completion
of account opening form without the provision of any other
documentation). - One passport photograph of authorized signatories
- Valid ID (Driver’s License, International Passport, National Identity Card or Voter’s Identity Card)
- Public Utility Receipt dated within the last three months
(PHCNbill, water rate bill, tenement rate, rent receipt, telephone bill etc.) - Visitation Report (Residence).
AVAILABLE CHANNELS
- Zenith Internet Banking
- ZenithDirect – our 24/7 telephone banking
- Zenith Mobile Banking App – 24/7 on your smart phone
- Zenith Bank ATM nationwide free cash withdrawal
- Access your account using your Zenith Bank debit card at participating merchant stores for payment of goods and services in Nigeria and anywhere in the world.
How to open?
To open this type of domiciliary account with Zenith bank, please click here to download the form and follow the prompts.
#2. Cash Domiciliary Account
Need a foreign currency account? Our domiciliary accounts give you the opportunity to conveniently carry out foreign transactions wherever you may be. With access to our debit cards, internet banking and mobile banking application, your transfers, payments, standing orders etc. can be done without you walking into our banking halls.
FEATURES & BENEFITS
- Zero opening balance
- Internet Banking
- Debit Card (USD)
- Mobile banking
- Email/SMS Alertz
- Standing orders
- USD
- No transfers allowed. (Cash in and cash out only).
REQUIREMENTS
- Account opening form (existing account holders with full documentation only require a written letter or completion of account opening form without the provision of any other documentation).
- One passport photograph of authorized signatories.
- Valid ID (Driver’s License, International Passport, National Identity Card or Voter’s Identity Card).
- Public Utility Receipt dated within the last three months
(PHCNbill, water rate bill, tenement rate, rent receipt,
telephone bill etc.) - Visitation Report (Residence).
AVAILABLE CHANNELS
- EaZymoney
- Zenith Internet Banking
- ZenithDirect – our 24/7 telephone banking
- Zenith Mobile Banking App – 24/7 on your smart phone
- Zenith Bank ATM nation wide – free cash withdrawal
- Access your account using your Zenith Bank debit card at participating merchant stores for payment of goods and services in Nigeria and anywhere in the world.
How to open?
Please click here to download the form.
Why opening a Domiciliary account is needed
Domiciliary accounts were made to help you use foreign currencies conveniently, in the same manner that your local current or savings account operates. With it, you can receive money in the foreign currency directly into your account.
Who is eligible to open domiciliary account?
Anyone who has a Bank Verification Number (BVN), both residents and non-residents in Nigeria can open a domiciliary account with UBA. (This does not allow inclusion for diaspora customers). Business corporations can also open and operate a dom account.
General requirements for opening a Domiciliary account in Nigeria
- Completed account opening form.
- Completed specimen signature card.
- Two recent passport photographs.
- Address verification document, such as a utility bill.
- Valid identification document, such as international passport, driver’s license, international drivers license or national ID card.
- Residence permit.
- Proof of address (stamped reference letter or a stamped bank confirmation that shows your address).
- A stamped reference letter or a stamped banker’s confirmation of your bank abroad.
- Two (2) reference forms from Nigerian current bank account holders.
- Marriage certificate (if available).
After getting the domiciliary account number, you can then give it out to the person that will send money for you abroad with some additional details.
If it is a dollar account, the money will be sent in dollars; this means that the person sending you the money must send it in dollars.
Once you receive your alert, you can go to your bank and withdraw the dollars by filling your foreign currencies withdrawal.
The same thing applies if the domiciliary account is opened in pounds sterling or euro.
The dollars will be given to you and then you can proceed to change it to your local currency (which is naira in Nigeria) at the Bureau De Change.
The BDC operator is just an office that buys dollars from you and gives you naira in exchange, or they can sell dollars to you and you give them naira in exchange.
What they do is to change whatever currency you need, whether from local currency to foreign or from foreign currency to local.
According to www.jotscroll.com, when you want to send dollars to someone in a different country, all you need to do is to collect the person’s details and then you proceed to the bank with your dollars (or any currency that you are using in your domiciliary account, this could be euros, pound sterling, etc).
At the bank, you will request for a deposit slip; you will fill and then the bank will process it. You can learn how to send or receive money using a domiciliary account in Nigeria.
One of the best ways to save money in a bank without having to let it lose value over the long term is by saving it in a global currency that is reliable.
A domiciliary account offers one the opportunity to do this. With a savings domiciliary bank account for instance, you can save your funds in the United States dollar or pounds without having to bother about the continuing depreciation of the Naira.
One of the reasons people lose money in Nigeria is by holding on to the Naira. It really makes sense to save money in USD, at least until you need to use the money.
One benefit of having a domiciliary account is that a customer can withdraw from it when he or she is in need to solve some urgent problems. This can be done by converting the foreign currency to their local currency anytime. Therefore, funds in a domiciliary account are safe from depreciation while also offering a higher value in the long term.
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We have known the requirements for opening any of the types of domiciliary account in Nigeria with either UBA or Zenith bank and their advantages. Now, let’s discuss further on to know the challenges of using domiciliary account before we conclude.
Challenges of using a domiciliary account
As good as a domiciliary account is, there are a few disadvantages an challenges of using it. In fact, every thing that is advantageous also has disadvantages. One of the challenges of using domiciliary account is that you are restricted to one type of currency per account. One down side of domiciliary account is that if you open a dollar account, it has to remain as that.
However, when you want to transact in Pounds, you have to get another Pounds domiciliary account and verse versa. This makes it challenging and does not allow for easy transaction.
It is also difficult to get referees when opening a domiciliary account. A few current account holders use it for salaries of which the banks do not accept salary accounts.
Banks that open any of the types of domiciliary account and their advantages
Almost all commercial banks in Nigeria allow their customers to open domiciliary account with them. Some Nigerian banks that offer this service are Guaranty Trust Bank (GTB) Plc, First Bank of Nigeria Limited, Diamond Bank Plc, United Bank for Africa, Union Bank Plc, Zenith Bank Plc, Fidelity Bank Plc, Skye Bank Plc, Ecobank Nigera and Sterling Banks, etc.
Read this also: Best banks to open domiciliary account with in Nigeria (2022)
Conclusion
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