A domiciliary account is a special type of bank account that allows the holder to transact in foreign currencies.
In Nigeria, such an account can be used to receive or send dollars, euros, sterling pounds, and more at the comfort of the account holder’s location.
Any of Nigerian banks allow people to operate this type of account. They include GtBank, Zenith Bank, Fidelity Bank, First Bank, UBA, etc.
If you carry out lots of foreign transactions, this is the account with its easy to use protocols can help you execute smart contracts at the comfort of your room. Here’s how you set up such an account with GtBank
Why You Need a Domiciliary Account In Nigeria
So, why do you need a domiciliary account? Here are 5 reasons to open a dom account:
Deal In Stable Currencies and Earn Attractive Interest Rates
A domiciliary account allows you to operate in the foreign currency of your choice, which is an opportunity to select a stable global currency to keep your finances in.
Additionally, any account balances accrue interest at very attractive rates.
Receive Foreign Payments Using Wire Transfer
PayPal has for a long time not allowed Nigerians to get their payments in foreign currency; with a domiciliary account, you can now let go of your PayPal and receive deposits from abroad without any hustles.
Domiciliary accounts have made it easier to monetize blogs through platforms such as Google AdSense and receive foreign revenue streams.
Change Foreign Cash Receipts for Higher Rates at Black Markets
Once you get the cash receipt alerts and withdraw the cash from the bank, you can change to local naira at some higher rate
Make Foreign Payments
Using your debit cards such as MasterCard, you can make payments from the cash in your account to anyone either abroad or local in foreign currency.
24/7 Banking Services Wherever You Are
Access to mobile and internet banking services allow you to conveniently execute cash contracts from the comfort of your room or wherever you are.
You don’t need to visit the bank premises, so how is it operated?
What You Need to Open a Domiciliary Account with GtBank
If you have gone through my guide on how to make money with Adsense, you’ll definitely need to receive your Adsense earnings with a domiciliary account in Nigeria.
Opening a Domiciliary account with GtBank requires just the same procedures used in other banks.
It’s done easily by the help of GtBank’s customer care, or you can even download the account opening forms and pre-fill them from the comfort of your home while cross-checking every detail before visiting the bank.
Here’re the documents required:
- A valid identification document such as a driver’s license, international passport or the national ID Card
- Recently taken passport sized colored photographs – you need 2 of them.
- Two referees to vouch for you. They must be account holders, especially with the bank you’re interested in operating your domiciliary account from; you will get two forms requiring the information of your referees.
- You will also need to present some photocopies of your recent (3-month) utility bills such as electricity and water bill
- After you present the forms to the bank and everything gets certified by the GtBank’s customer care, your account should be up and running in just under 48 hours once you pay a $100 activation fee.
How to Operate a Domiciliary Account
The first thing you need to know is that all cash receipts and payments are made directly in foreign currencies, so you are going to have to fund this account with the foreign currencies you wish to transact in.
You do not use a domiciliary account to grow cash (save money); it’s just an account that allows you to send or receive money from abroad.
Once you open the account, you are granted access to internet banking, mobile banking, and debit cards so you can operate the account from wherever you are via the internet or SMS.
To receive money, just give the sender your account number plus other necessary information and tell them to send the funds in the currency you operate your account in.
To send money, you too need the receivers to account number and other necessary details such as the currency they operate their account in then you buy the foreign currency and channel it into your account using a deposit slip and make payments.
Transaction charges apply; for example, every cash withdrawal attracts a 0.5% (or negotiable) charge of the total transaction value while cash transfers attract charges such as a $25 swift charge, off-shore banking charge, VAT and a 5% of transactional value charge
Money gets sent via wire transfers; the account can be funded or withdrawn from using cheques, depot, and withdrawal slips presented to the bank too.
Just remember that foreign transactions take about 3 days to reflect. Withdrawals can be from cash machines such as ATM too.
Are There Some Disadvantages of Operating a Domiciliary Account?
Yes, a domiciliary account has got its downside too, for example, the limitation of the only type of currency per account requires that for each foreign currency you wish to deal in, you have to open a domiciliary account for it.
The other hustle is the referee requirement may be hard to fulfill as the bank only accepts people with a domiciliary account which most of Nigerians still don’t have.
Transactions also attract charges with are quite high, especially if you deal in small quantities of currency. Just have some good reason to operate this type of account.
However, there’re several benefits of operating a domiciliary account, and some clever folks are using it even to bet on the currency market and earn revenues from the swings in exchange rates; be sure to look into such clever ways of optimizing your account.
If you need a GtBank domiciliary account just get in touch with their customer care in one of their premises.