So you were ripped off by your banks under the guise of “bank charges”, “postal stamp duty” etc, News9naija is here to provide you with accurate step by step guide on how to prevent these charges.
Social media platforms went agog few days ago with many grieved customers lamenting the exorbitant bank charges on their accounts.
Access Bank Plc seemed to be the scapegoat as many took to twitter to call them out.
Shortly after the uproar on Twitter, Access bank pledged to refund all customers their debited “postal stamp duty” stressing that it was an error on their part for “allowing” the charges to accumulate all through from January.
However, they maintained that the charges will be applied in all future transactions as it was a directive from the Central Bank. They claimed they would still remit “late” charges to the Central bank from their own funds.
The truth is that their charges are outrageous but its not the banks’ fault! All commercial banks in Nigeria debit these charges but the only difference is that most banks don’t send out alerts on internal debits. If you monitor your account balance often, you would notice that your account balance is always on the decline.
Understanding these Bank Charges
The Central Bank of Nigeria is the apex financial institution in the county. This means it rolls out rules, regulations and guidelines to prevent exploitation of customers by banks.
All charges made on your accounts are “approved by the Central Bank”. Below are list of charges applicable to savings account.
- SMS charges are made at the rate of N4/SMS
- Inter bank transfers via mobile apps, USSD, ATM, and other electronic transfer methods are charged at N50 with an added VAT of N2.50.
- RTGS transfers will cost N550; RTGS, short for Real-time gross settlement systems are specialist funds transfer systems where the transfer of money or securities takes place from one bank to any other bank on a “real-time” and on a “gross” basis.
- Card Issuance Fee of N1000. It goes for same cost if you want to replcae the card after expiration, damage or misplacement.
- Monthly maintenace fee of N50 ( N600 annually) for Naira denominated credit/credit card. Debit /Card denominated in other currencies are charged at $20 per annum.
- Stamp Duty Fee of N50 for all credit transactions above N10,000. Stamp Duty Fee is a new bank charge recently introduce in by the Federal Government in the Finance Bill.
With all these bank charges, it is established that your savings account has just turned into a “tax account”.
How To Prevent these Bank Charges
Since it has been established that the above listed bank charges are approved by the central Bank, there is no direct way to “Stop” the banks from making these charges but since its a Nigerian problem, We can always deal with it the Nigeria way Legally!
You put your money in the banks, they trade forex, give out loan, etc and generate profits with your money, why can’t they take these charges charges from the profit they made trading with your money?
Well the only thing you can do to stop them is to dump any bank that does not pay your bank charges from the profit they make while trading with your money!
There are several more digitally inclined banks than your regular commercial banks that would not charge you a dime for all banking services , this is want I want to introduce you to.
Very flexible banking services, super customer support, etc yet won’t charge you a dime or at most charge you very little compared to your regular commercial banks.
For this Purpose, i will be recommending with banks;
- Rubies Microfinance Bank Ltd (Rubies Bank)
- VFD Microfinance Bank (V by VFD)
Rubies Bank: Fully digital bank with Physical Banking services, extremely low bank charges.
Rubies is a fully digital banking platform, offering zero fee banking targeted at millennials, young professionals, SMEs, quasi-financial institutions and FINTECH companies.
Some key Featues of Rubies bank includes;
- Account number can be personalised (some use their phone numbers)
- Free debit cards having your preferred name e.g. a nickname. It is also delivered to you at no cost. There are no bank charges attached to your ATM card.
- Money Request – for those who keep on giving excuses of not having your account number or even those that owe you money. This feature allows a customer to request money and instantly get credited from someone’s account number or even phone number. You request money from people, they only approve and you get credited. That simple!
- Proximity Transfer – Sending money using location (The new Bluetooth for money transfer)
Bank charges on Rubies are driven down to near zero. This makes it possible to waive charges and avoid all the “hidden” charges that traditional banks levy their customers. For interbank transactions, Rubies charges N21 (instead of N52 that traditional banks charge), this being the cost of the transaction payable to the switches, while Rubies earns nothing.
With Rubies you are guaranteed zero card maintainence fee, no SMS charges, and zero stamp duty charge!
How To Open A Rubies Bank Account
- Download the Rubies App, Click here to download
- Open the App
- Select Open Account
- You will see two Option, which allows you to select your account number or let the system assign you a number.
- Click on Proceed.
- Your account is read for use, to request an ATM card, you will need to provide more details about yourself.
- The required details needed to get an ATM card are 1. Personal Details, 2. A valid ID Card, 3. Utitility bill, 4. Your signature uploaded as a photo.
Three Easy Way to Deposit Money into Rubbies Account.
- SEND MONEY FROM OTHER BANKS: Send money to your Rubies account from other banks’ mobile apps. Put your account number and select RUBIES MFB.
- PAY CASH: In Rubies app, please click on Fund Account. Select Cash and follow the instructions. Rubies will give you an account to pay cash into at any bank of your choice, Rubies will credit you.
- Fund your Rubies account using your other bank’s debit card. Right on the app…
Rubies Bank is a game changer in the world of digital banking with zero hidden bank charges.
V by VFD : Zero Bank Charges on all Transactions.
V by VFD popurly called Vbank is fully digital bank with zero paper work, no queues, none of any of the things that annoyed people who had to go to bank branches to get even the most mundane things done.
With a V Account, you can expect a streamlined digital and mobile banking experience, with ease of access to your accounts, swift and secure transfers, withdrawals and bill.
For business owners , Vbank offers the under-listed extra benefits.
- Loan facilities for salary payment
- Overdraft facilities for staff
- Bulk payments
- Administrative support
- Priority support
- Loyalty reward up to 2,000,000 NGN per month
Unlike other apps that are laced with either unbidden and hidden bank charges, V is free, as there are no charges for customers whether they are transferring money to another customer of VFD or another bank.
One downside of V bank is that outside the V app which allows you to transfer funds, top up, pay bills, etc, there is no virtual card (credit or debit) attached to the account that can be used for other online transaction. However, you can make withdrawals from the ATM machines using the cardless withdrawal feature.