Here in this post, we are going to enlighten you on cash deposit limit In savings and current accounts In Nigeria. We hope you find this informative.
The world is a global market, and money is the legal tender acceptable for transactions, as such having a bank account is a necessity in today’s world.
Banks give us the flexibility and freedom of conducting monetary business over long distances – without having to make strenuous long-distance trips – pay our bills, transfer funds, and also keep our hearts at rest by safeguarding our money.
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The invention of ATM’s, as well as the introduction of mobile money apps, have only made this process even easier. In summary, Banks make our financial lives easier.
Because of this flexibility and freedom, bank accounts are being opened on a daily basis, either by individuals, or corporate businesses.
However, like every other corporate financial institution, Banks come with their own rules, one of which is the maximum single deposit limit for a financial transaction and the maximum cumulative balance one can have in a bank account.
Recently in Nigeria, in 2013 to be precise, The Central bank of Nigeria (CBN), as part of strategies to promote financial inclusion and also to reduce money laundering and financial terrorism, set a new maximum limit for single deposits, cumulative balance, maximum transaction limit and maximum daily transaction limit for both savings and current bank accounts in Nigeria.
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So just in case you want to open a savings or current account in Nigeria and you are not sure the maximum single deposit and cumulative balance limit that is allowed in savings and current accounts in banks across the country, Or if there’s a monetary transaction you want to process that involves a huge sum of money, and you do not know if your savings or current account limit allows such a huge sum to be transferred or deposited, this article is for you.
Here in this article, we’re going to provide you with information on the maximum single deposit limit and maximum cumulative balance you can have in a savings/current account in Nigeria.
Central Bank of Nigeria’s new Three – tiered KYC requirements
In 2013, the Central bank of Nigeria (CBN), in a bid to promote financial inclusion in Nigeria, and make basic banking facilities and other financial services available to more Nigerians who have been excluded from enjoying these services, introduced the three-tiered KYC (Know your customer) requirements for banks and other financial institutions as part of the National Financial Inclusion Strategy.
Having discovered that about 64.1% of Nigerians (53.6 million) do not have access to financial services, The CBN issued these new requirements to ensure that financially disadvantaged persons are not precluded from opening accounts or obtaining other financial services in the country.
As well as introducing a more flexible account opening process, the CBN also set the limit for single deposits and cumulative balances for savings and current accounts in the country.
Accounts were also separated into low and medium value accounts – which are strictly savings accounts, and high-value accounts – which could be either savings or current accounts.
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Cash deposit limit for Low value (Savings) account
The CBN set the maximum single deposit into this account at N20,000, while the maximum cumulative balance was set at N200,000 at any given time.
That is, for a low-value savings account, your single deposit will not exceed N20,000, while the total amount of money you’re allowed to have in the account is N200,000.
Also, the CBN set the maximum transaction limit for this account at N3,000, while the maximum daily transaction limit was set at N30,000. No amount is required to open this account.
You’ll, however, be required to present a passport photograph, and other basic information like your name, gender, date of birth, telephone number, Address, etc.
The low-value account supports level one mobile banking products, ATM transactions and can be linked to mobile phone numbers.
The account is however only valid in Nigeria, and transfer of international funds is prohibited. This account is strictly a savings account.
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Cash deposit limit for Medium value (Savings) accounts
The CBN set the maximum single deposit for the Medium value account at N50,000, while the cumulative balance was set at N400,000, although some banks, like First bank and Zenith bank, have theirs set at N300,000.
A maximum transaction limit of N10,000 was also set, as well as a maximum daily transaction limit of N100,000. No amount is required for the opening of this account, although basic customer information (such as name, date of birth, gender, address, telephone number, etc.) would be required.
A form of ID like the National identity card, voter’s card or driver’s license would also be required, as the bank would have to verify the information given in the National database – National Identity Management Commission (NIMC), Independent National Electoral Commission (INEC), Voters registry, Federal Road Safety Commission (FRSC) etc.
The account supports level two mobile banking products, may be linked to a mobile phone, and can only be used for funds transfer within Nigeria only. This account is strictly a savings account.
Cash deposit limit for High level (Savings/Current) account
This account has no limit placed on single deposits and cumulative balance. The maximum transaction limit is however set at N100,000, with a daily limit set at N1,000,000. No amount is also required for the opening of this account, although the usual customer information details are required, while banks are asked to obtain, verify and maintain copies of all documents required for the opening of this account.
Level three mobile banking products are allowed with this account, and the account could be both savings and current.
To facilitate business and monetary transactions within or outside Nigeria, a bank account, whether savings or current, is necessary.
With the CBN’s new financial inclusion strategy, opening one is no longer strenuous, and armed with the information in this article on the single deposit and cumulative balance limit for both savings and current accounts in banks across the country, you now know how to better conduct your transactions so as to stay within the set mark. Has this article been helpful? Let us know.
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