5 Types of Bank Accounts And Their Distinctive Features
Bank accounts are the safest and most convenient way to store your money. They provide you with easy access to your funds, as well as many other advantages that you may not be aware of.
Banks are the biggest source of financial services in Nigeria and you can be assured of getting the best service for your money with a bank. The best place to find out what kind of account you should open is at your local bank. The following are some of the different types of bank accounts available:
A savings bank account is a type of bank account that allows you to deposit money and earn interest on it. It’s a good option for people who want to save money for future use, such as retirement or education expenses. The interest rate is usually higher than that of a current account because the money in your savings account isn’t immediately accessible by anyone but yourself (you can’t withdraw it).
Savings bank accounts also tend to have more restrictions than other types of accounts. Some banks will require you to maintain a minimum balance in your account, while others don’t. If you’re interested in using a savings account as an investment vehicle, talk to your bank about its options for investing money.
Also Read: 10 Benefits of A Savings Account For Your Business
A current account is a type of bank account that allows you to deposit and withdraw funds as well as make payments. Current accounts can be interest-bearing or non-interest-bearing, depending on the type of product that you choose.
A current account is an essential part of a person’s financial life and it’s used for paying bills and making payments. You can also use it to save money or invest in other accounts. However, when you’re setting up a new current account, make sure that you understand the fees associated with it. Those can add up fast if you don’t pay attention!
Fixed deposit account
A fixed deposit account is an FD, and it’s the most common type of bank account in Nigeria. It allows you to make deposits and withdrawals without any restrictions or penalties as long as they are fully paid back within one year.
Type: Fixed Deposit Accounts
Minimum Deposit: NGN 10,000
Maximum Deposit: NGN 200,000
Duration of Deposits: 3 working days to 5 years
Salary accounts are opened by employers to pay workers. The employer is the account holder, and his or her salary will be deposited into the account. A salary account can be used to make withdrawals and deposits, but it cannot be used as an ATM card (although some banks may allow you to use your salary as payment for goods or services).
A Domiciliary account is the most common type of bank account in Nigeria. It can be opened by a person who is not a resident of Nigeria, with or without proof of address. The minimum balance required to open this type of account is N5,000.
A bank that can meet your need is better than every other thing
A bank that can meet your need is better than every other thing. The only way to ensure that a bank will meet your banking needs is to select a financial institution that is well-established, has strong customer service and experienced staff, and or a wide range of products and services.
The most important thing is that you should pick the bank account that suits your needs. It is advisable to choose the best one depending on your financial status and requirements because there are different types of accounts in Nigeria with various features.