Some are going through this article because they urgently require information, while some see this article as an eye-opener. Before we discuss GTbank’s domiciliary account charges, let’s have a brief understanding of what a domiciliary account means.
What is a Domiciliary Account?
Well, I’m basic terms, a domiciliary account is just a type of bank account, only that all transactions that occur on the account are in foreign currencies.
Almost all Banks in Nigeria have the domiciliary account option, however, First Bank, Stanbic IBTC, and GTBank are the most preferred.
So basically, a Gtbank domiciliary account is a type of Gtbank account that allows you adequately manage or carry out transactions in foreign currencies. Domiciliary accounts are not like every other bank account type as they become inactive after six months. Well, this isn’t much of a constraint as you can visit any Gtbank branch with your form of identification and in no time, the account will be reactivated.
Why is a Gtbank Domiciliary Account Needed?
The benefits of using a Gtbank Domiciliary account are quite intangible especially to online marketers, freelancers, bloggers, and so on. These people tend to work with foreign business owners that can only render pay in foreign currencies.
Basically, the advantages of a Gtbank domiciliary account include:
● Affiliate Marketing & Freelancing Related Benefit
A wide variety of bloggers in Nigeria tend to monetize using Google that renders payment in US dollars, while others operate Amazon where they also receive payment in US dollars.
Earning foreign currency into your savings bank account and not a domiciliary account is a loss for you. Here’s why.
Let’s say you finished up a job as a freelancer and the company you worked for paid about $100 into your GTbank savings account, Gtbank will convert the cash for you into Naira at the rate of 315 Naira per one dollar. Leaving you with NGN 31,500 from the calculation.
Opening a Gtbank domiciliary account allows you receive your cash in foreign currencies, with no conversion. You can walk into any Gtbank branch cash out your dollars and head to black to change your foreign currency to naira. The currency fluctuates between 358-360 naira per one dollar.
Meaning instead of getting NGN 31,500 for $100, you’ll be getting NGN 35,800 – NGN 36,000, more money!
● Online Shoppers
If you purchase stuff a lot on foreign sites and also probably earn cash in foreign currencies, you’ll definitely be needing a Gtbank domiciliary account.
A domiciliary account will totally eliminate the spending limit of your Naira MasterCard on foreign sites and will also totally eradicate your worries about the exchange rate as the rate fluctuates between 365 — 366 Naira to one dollar. Basically, you’ll be able to shop with dollars.
GTbank Domiciliary Account Charges
Opening a Gtbank domiciliary account of absolutely free, however, you might have to fund your account in order to activate the domiciliary account. Not performing any transaction for six months, renders the account dormant.
With a GTbank domiciliary account, you’ll have a withdrawal limit of $1000 monthly. A weekly & daily transfer limit of $50,000 and $10,000 respectively.
Bank transfers to other domiciliary accounts incur an extra charge of 1% of the amount you wish to send plus a swift charge of about NGN 4,000. There has been a hike in bank transfer charges, and this is because normally, it was only about 0.5% of the full transaction and about 5% VAT or $10.5. From the calculation, you’ll notice that the least charge that could be incurred is about $2000.
So technically, all Gtbank domiciliary account transfers made between $1 — $2000 attract a $10.50 charge.