These days, it’s quite easy to open a bank account. Just by dialing USSD codes like *737# or *996#, you could own a bank account. Mind you, bank accounts opened this way have limits. To own a savings account in Nigeria, you still have to go through the proper process of opening savings accounts.
In this post, you will learn what a savings account is; how to open a savings account and the difference of savings accounts to other accounts.
What is a Savings Account?
A savings account is a personal bank account where people save money and earn interest for saving money.
Another type of account is a current account. Banks charge current account owners while they give interest to savings account owners.
You might be wondering why the bank pays interest to savings accounts.
Here’s the catch; when you save your money in a savings account, in a way, you are lending money to the bank. The bank uses these monies to give loans to people that need them and make a profit from those loans. So, in a bid to say thank you for keeping your money, they pay you interest.
If you withdraw more than a particular number of times from your savings account, you may not get an interest that month.
The 22 commercial banks in Nigeria offer savings account openings.
How to Open a savings account
First of all, you need to have the requirements to open this account. Below are the requirements to open the account;
- A valid means of identification. We have written how to obtain the various means of identification, click to read it.
- Utility bill; NEPA bill, water bill, etc
- Passport photo
Visit the branch of your favorite bank with the required documents needed and tell them you want to open a savings account.
At the bank, you will be given a form to fill. Fill the form correctly and sign. Submit the documents; the documents will be scanned and the originals returned to you.
An SMS message containing the account number will be sent to customers who recently opened an account.
Most savings account are free to open. Although, you will be charged to get an ATM card.
You can open a Wema bank account online by using the Alat app. More banks may implement this strategy in the future. It would no longer be compulsory to go to a bank branch to open an account.
When you open a bank account in Nigeria, you will be required to link it with your BVN number. If you don’t have a BVN prior to now, the bank will register it for you instantly. Hence, a Bank Verification code will be sent to your mobile phone.
Make sure to fill the information correctly, any wrong information may give you issues to correct later.