I have come to discover that many people don’t know the meaning of a domiciliary account. So, sit back while I share with you the meaning of a Domiciliary Account. I will also give you the different types, Advantages/disadvantages, the requirements and a step by step process on how to open a Domiciliary account in any bank of your choice in Nigeria.
What is a Domiciliary Account?
A domiciliary account is a type of bank account where you save or transact in foreign currencies like US Dollars ($), Pound Sterling (£), Euro (€) etc. It works like your normal savings or current account but you only transact foreign currencies. Many people called this type of bank account different names like; dom account, Dollar account, etc. There are quite a few reasons why people use this account in Nigeria. One of the reasons is that it helps any international business transactions run smoothly. It mostly helps international business owners and individuals to send or receive money in US Dollars and any other currencies for which the account is meant for.
Types of Domiciliary Account
Domiciliary account is of two types. We have the Savings and a Current Domiciliary bank account. They both allow you to deposit, send or receive money in other currencies but the only difference is that the current account allows the use of cheques to do transactions. Which means you can issue cheques when you run the current type of this account.
As a domiciliary bank account holder, you can deposit or receive money only in foreign currencies from the different part of the world. In order to convert the money into our Naira, you’ll have to fill the teller in the bank where you operate the account and change the Money in Bureau De Change once collected from the bank.
One of the major disadvantages of opening this type of account is that you must have a different account for each currency you wish to transact with. For instance, If you open a Dollar account, it can’t be used to transact other currencies like Pound or Euro. This now makes it a big challenge for someone who wants to use other currencies too.
How to open a Domiciliary Account with any bank in Nigeria
Opening a domiciliary account in Nigeria is not very difficult. Visit any nearest bank of your choice and ask to open a foreign account. You will be issued a form which you are required to fill and submit for processing. Once the necessary requirements are also submitted, you’ll be given your newly opened account number within few days. With the account number, you can forward it to whoever wants to send you money abroad. Having said that, you can also use it to deposit foreign money.
Most of the banks’ requirement in opening a domiciliary bank account in Nigeria are almost the same. It will be an easy process if you are already operating an account with the bank. The requirements are:
- 2 Passport recent photograph
- Valid Means of Identification (Driver’s License, International Passport, Voter’s Card)
- The most recent utility bill such as NEPA Bill etc.
With the above requirements, you can open a domiciliary account in GTBank (Guaranteed Trust Bank), Skye Bank, UBA, Zenith Bank, First Bank Nigeria, Diamond Bank and with Access Bank etc.
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If you have any question regarding this post, please leave it in the comment box below and I’ll attend to it in a jiffy.