How to avoid bank/ATM charges - Believe it; bank charges in Nigeria can empty your bank account. There are many obvious and hidden bank charges imposed on Nigerian customers by various banks in Nigeria. Officially, the Central Bank of Nigeria (CBN) approved 5 mandatory charges for bank account. These include: Current Account Maintenance Fee, the N50 Stamp Duty per Deposit Transaction into your account, N100 e-DMMS Application fee, N65 ATM Withdrawal Charges and NSE/CSCS Trade Alert.
The CBN also started a N100-per-month charge on every check card (Your normal ATM card). This amounts to N1, 200 per annum. The CBN also charges a N4,200 per annum on outside cash assigned cards as bolster cost. For every N1000 you take from your account, your bank will take N1. So the list goes on. It is bank charges everywhere.
There are many steps you can take to avoid or reduce these charges. Read below.
Chose your communication
Find a bank with pointless charges. Some banks do not charge or charge less for email, alerts, SMS, or card up keep expense. When opening account, ask and compare bank communication charges. Some bank charge for SMS for every transfer. You could save a lot of money over the period.
Avoid ATM withdrawal charges
After a third ATM withdrawal from an ATM machine that is not yours in a month, you will start paying N65 per withdrawal for that month. This is silent but has a huge cumulative impact on your bottom line. Assuming an average of one withdrawal per day, that cost you N65, over a year. This will cost you N23,400 per year. When you avoid third withdrawal from another bank ATM that is not your bank you will not lose this money at the end of the year. Plan yourself to always withdraw from your bank’s ATM.
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Limit Interbank transfer Charges
Try to do your third party bank transfers to your bank. Interbank transfer cost as high N105 per transaction. Paying N105 a thousand times amounts to paying N105,000 in charges. You can avoid or reduce these charges. How? When you transfer money or pay for service to another person, ask or demand that the bank account be the same as your bank. Carefully chose services that enable you make payment only to accounts with your bank.
Avoid deposit charges
For every cash deposit into your account, you will pay, N50. To avoid this charge, request people to make direct debit online transfer into your account. Online transfer into your account does not cost anything. Also avoid making several little deposits, instead, make a cumulative deposit amount into your account. In this way you only pay the N50 once and avoid multiple charge.
Read your contracts
Make sure you read those tiny printed statements in the terms and condition and contract before signing. It is absolutely important to read and know all the hidden charges under your account. This is the difficult part, but it is worth it. Especially when taking loan facility, do not be in a hurry to sign what you do not understand. There are many banks with clear and sincere conditions, with no hidden charge. Go for them. Ignorant is not an excuse.
Read you bank account statements
Many do not read their monthly bank statements. Read your bank explanations/statement month to month, intentionally searching for pointless charges. Whatever you don't understand in your bank statement, go to your bank or account officer and have it cleared. On the off chance that you don't know how to do it, get a bookkeeper to teach you. I have severally called my bank to demand explanation for pointless charges. These complaints are logged. Once your bank is aware that you are watching your account, they could be more restrained in imposing pointless charges on you. You should have your account officer’s phone number.
Disable unnecessary bank alerts
Bank alerts are not free. They will charge at month end. Disable unnecessary alert notifications once you notice it. Most banks charge independently for SMS and email, yet both fill practically a similar need. Chose either SMS or email, whichever suit you best.
Avoid paper statements
When you need your bank statement print it online, log into online platform and print it yourself. Better still avoid paper statement, most bank charge more when you walk into the bank asking for paper statement.
Overdraft
Overdraft is not free, all banks charge for overdraft. Try not to spend more than what you have in your account to avoid chargers.
Cheque issues
Avoid issuing bounce Cheques. Hahaha! Sounds funny! Yes! Do not issue cheques on your account if it is not funded, it will attract serious bank charges and damage your credit records. If you issue a cheque for a future date, and you could not fund the account on the cheque maturation date, call the recipient on the phone and advice against presenting the cheque to the bank. It is better than incurring bank charges.
Ask and Compare
Finally, before you open account with any bank, ask questions about their charges. Ask about account maintenance fee, interbank transfer fee, SMS alert charges, bounce cheque fees, overdraft fees, and other prevalent fees. Compare with other banks fees and make you choice. Guide to CBN charges.
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