What are the Bank Charges for Transferring Money? Here are the changes made by CBN, The Central Bank of Nigeria (CBN) has cut down on charges that apply to accounts with banks, electronic transfers and ATMs from banks and financial institutions banks, and other financial establishments that are not bank-owned within the country.
CBN states that the new charges will allow customers of banks to use digital banking, and improve the accessibility of financial services. It is in the updated Guide to Charges issued by banks, financial institutions as well as nonbank financial institutions, released in the course of the week. The updated bank charges for transferring money will replace the charges that were issued on May 17, 2017, and will take effect on January 1st, 2020.
According to the Central Bank of Nigeria, the updated Fee Guide is being put in place to build a global banking system that effectively satisfies the requirements of the banking population while maintaining the financial viability of financial institutions, banks, or non-bank financial institutions.
The bank charges for transferring money guide will encourage people, especially those who make micropayments, to make greater use of e-banking, thereby increasing financial inclusion for all. It will also lower the costs of banking services for customers and increase access to banking without having a significant impact on the profits of institutions under the aegis of the Bank.
Here in this article, we will not only be looking at bank charges for transferring money alone, we will also show you a few things to prevent unneeded charges on your bank account.
Table of Contents
Bank Charges for Transferring Money
- There is a fee-scale for online transfers that will take over the existing flat cost of N50. Therefore, bank charges for transferring money less than N5,000 will result in a maximum cost of N10 for transfers from N5001 to N50,000-N25 and transfers that exceed N50,000-N50
- The fee for maintaining a card on current accounts has been eliminated since the accounts already pay the maintenance charge for accounts. Savings accounts now have the card maintenance cost in the amount of N50 per quarter, compared to N50 each month.
- The annual Card Maintenance Fee on Foreign Currency (FCY) debit cards is decreased to $10 from $20.
- ATM charges will be reduced up to N35 upon three withdrawals within a month, compared to N65.
- The price for the hardware token will be on a cost-recovery basis, subject to a maximum charge of N2,500, which is a reduction from the previous maximum charge of N3,500.
- The cost for SMS-based mandatory alerts will be based on the basis of cost recovery from the previous maximum charges of N4.
- Payments made via electronic channels can be subject to a maximum charge of N500 starting at 0.75 percent of the transaction’s value to a maximum limit of N1,200.
CBN said a new Liability and Sanctions Regime section will address cases of overcharging, unapproved, and arbitrary charges.
Common Bank Charges in Nigeria
· Stamp Duty Cost
Stamp duty is a tax that is charged at 0.75 percent on the authorized share capital upon the incorporation of any company or at the time of the registration of shares for new shares.
All banks that hold deposits, as well as financial institutions, are mandated by CBN in order to cost stamp duty of NGN 50 for every transaction that exceeds NGN 10,000.
· Costs for SMS Alerts
SMS alerts/notifications are texts automatically sent to the bank customer’s registered phone number as soon as he/she makes an activity (either debit or credit) to their banking account.
The CBN in a press release in which it stated that all bank customers must receive SMS notifications on their mobiles.
However, you can choose to not receive SMS alerts by completing an indemnity application at the bank they are with.
How to Avoid Some Banking Charges
Here in this article, we will not only be looking at bank charges for transferring money alone, we will also show you a few things to prevent unneeded charges on your bank account.
· Utilizing ATMs of other banks (N35/transaction)
The ATM terminal of a different bank (machine) is subject to a charge of N35 Nigeria per transaction in the entire country. Sometimes, this is deducted in conjunction with the withdrawal amount or in a separate manner when a third withdrawal is made on another machine.
To avoid this cost you can use the ATM from your bank.
· COT – Account Maintenance Fee
(COT) Means – Commission on Transactions which is also known as Account Maintenance Fee (AMF) is normally charged to corporate and current accounts. The AMF is payable at the rate of N1/Mil (i.e one naira is taken from your account for each one million naira that you withdraw).
It seems like a lot, right? It’s true that the cost for N10,000 is 10Naira and the charge for N1,000 is 1naira. If you have one with a high turnover of debits the charge will be frequently on your corporate account. It is taken monthly.
Here’s how to cut down on the expense of this charge:
- In relation to the amount of cash inflows that a customer receives in their account, the client is able to negotiate the cost to the banks. For instance, you can request the bank to reduce the amount down to N0.5 or N0.25.
- The best method to prevent this from happening is to request an account bearing a non-AMF/COT bearing when it is first established. If you have an AMF/COT-bearing account make sure that you have a sub-account in place that is not liable for AMF charges. Every Nigerian commercial deposit bank offers this option, but they are reluctant to tell customers about it that they do not want to lose the AMF income.
ATM Card Maintenance Fees (N52.50 per month)
Debit/credit card maintenance fees are an annual fee that the bank makes on credit and debit cards.
To lessen the cost, ask your bank to de-map any expired or lost accounts. This is due to the fact that many banks continue to charge this fee for lost or expired cards without knowing the consumer.
Make sure you only have one credit card in all banks you work with.
An effective solution to the problem is to never accept a credit card. This only works in the event that there is absolutely no reason to use it.
Conclusion
In this article are the bank charges for transferring money made by CBN, that apply to accounts with banks, electronic transfers and ATMs from banks and financial institutions banks, and other financial establishments that are not bank-owned within the country.
bank charges for transferring money