How To Avoid Bank Charges Using Digital Banking in Nigeria.
Introduction.
Do you know that feeling when you get a bank notification and you're hoping to see a credit alert but no, you get a debit alert instead from probably what you know nothing about. Or that feeling when you have a low account balance and you still get debited from the little you are managing. Disappointing and annoying right??
Understandably, bank charges are a way of maintaining financial institutions in terms of infrastructure, banking service cost, and source of revenue. But sometimes, these charges can be annoyingly unnecessary and they vary across different bank institutions. Some of the different types of bank charges in Nigeria include:
ATM withdrawal fee: A fee charged by banks for withdrawing from an ATM which varies depending on the bank.
Electronic transfer fee: Fee charged when a financial transaction is made. Some banks charge a fee when you send money to another bank account, while some banks charge when you receive money into your bank account. Either way, you're paying for one.
There are other different types of bank charges in Nigeria and it can be a lot for some customers to keep up with.
Are you tired of excessive bank charges and you're looking for ways to avoid it?? Well, look no further as the digital world has evolved and we now have online banking services in Nigeria that provide an efficient solution to escape these bank charges and manage your finances.
In this article, we'll be providing you with a few practices to help keep your bank account in check. And so whether you're making financial transactions or paying bills you don't have to worry much about bank charges.
- Avoid overdraft fees.
You are charged with overdraft fees most times when you spend more money than what you have in your account. Be sure to keep an eye on your account balance and you can also turn on your notification to always receive balance alerts. This can help you avoid spending much as you’ll often be debited for continuous transactions. You can also link your savings account to your transaction account for automatic transfers should in case your balance is getting low to help cover any potential loss and avoid overdraft fees.
2. Make use of your bank’s network ATM.
Most banks charge a fee when you use ATMs out of their network. And so it is advisable to always withdraw from your bank’s network ATM except in emergency cases to avoid being charged. It is easy to locate the nearest fee-free cash machine thanks to the ATM locators provided by many banks in their mobile apps.
3. Make use of Email alerts.
Email alerts have zero charges as all you just have to do is check your email after every transaction. Unlike SMS alerts that attract at least #4.00 per alert notification in a month. You can decide to opt out of SMS alerts if that’s a lot for you and make use of email alerts which do the same thing as SMS alerts and require no fee.
4. Select the right online banking service that suits you.
Before signing up for any of these online banking services, be sure to understand their services and fees. It is important to note that their fees may vary. Review the terms and conditions and compare the services then select which is favorable to your financial needs.
We’ll be listening few digital banks you can try out.
a. ALAT by Wema Bank: This is one of the oldest digital banking platforms operated by one of the commercial banks in Nigeria, Wema Bank which provides easy online transactions and zero maintenance fee. It also offers free transactions to other Wema Bank or ALAT accounts and provides a free virtual debit card that allows you to make up to three free fee ATM withdrawals per month( although might be charged depending on the ATM operator used).
Using this app helps you to be mindful of transaction limits so you can stay within these limits to avoid additional fees. All you just have to do to get started is to input your phone number, BVN, full name, and address as you sign up for the mobile app which is available for iPhones and Androids.
b. Kuda Bank: This is one of the microfinance banks in Nigeria that provides free services on most of its operations as long as you have at least a thousand naira in your account. It operates mainly through its mobile app which is very common, accessible, and user-friendly. Kuda offers free cash deposits, zero charges on card and account maintenance fees, free ATM withdrawals, and up to 25 free transactions to other banks in a month with a reasonable annual interest rate.
This online banking platform also provides budgeting, bill payments, loan, and auto-save features to its users. All these benefits can be enjoyed just by signing up to their account on their mobile app which is available on both iOS and Android platforms.
There are other digital banks you can try out like One Bank by Sterling Bank, Vbank by VFD, etc.
Conclusion.
Digital banks have a lot of benefits to offer to its customers but it also has its downs. In case you're considering switching to a digital bank, you should consider looking into their various features such as interest rates, digital tools, etc, and compare them to select the one that suits your interest best.
Regardless of its downside, most Nigerians are now aiming for digital banks as they provide better services than many of these commercial banks. You can also embrace the convenience and affordability of online banking in Nigeria. Save more, spend less using digital banking!
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Written by Joy Ayomi. Writer for Detty Finance.
