Can i withdraw naira from my domiciliary account? Explained
Domiciliary account in Nigeria, one of the best account to have more especially when you are the type that usually receives funds from abroad.
Having a domiciliary account is a good thing but sometimes it comes with hitches. The hitches I’m talking about is being able to withdraw your money from the bank.
Have you ever been to the bank to withdraw money from your domiciliary account and for the bank to tell you that there’s no available fund to give to you.
Thats very painful and same time annoying.
This bring us to the question of the day.
Can i withdraw naira from my domiciliary account?
The answer is yes. You can withdraw naira from your domiciliary account through the atm or by using the bank counter, and it will be exchanged using the bank exchange rate.
You can go through this process if you desperately need naira else I don’t see the reason or the need to use the bank exchange rate to withdraw money from your domiciliary account.
The truth is that this usually occurs when the bank have no funds to give to you. This has happened to me twice, one was zenith bank and the other gtbank.
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When i went to the bank to make withdrawal, lo and behold they practically told me they have no funds even after five days because there’s was an issue bank was having with the central bank then.
I was left with the option of using my dollar debit card to make a withdrawal or going to the counter to exchange the money in my domiciliary account to naira using the bank exchange rate.
I had no option than to go with it and it was a painful one cause I know how much I lost to the bank.
I’m explaining this to let you know that indeed you can can withdraw naira from your domiciliary account and it will be exchanged using the bank exchange rate and not the black market exchange rate which is way better than the bank rate.
Let me show you how you can go about it.
How to withdraw naira from a domiciliary account
There are two ways to withdraw naira from a domiciliary account and they include;
- Through over the counter
- Through atm
1. Through over the counter
This requires you going into the banking hall and moving straight to the counter section. Collect a withdrawal slip and fill out the form.
This is where matters most.
On getting to the customer representative, request that you need the bank to give you naira instead of dollars. What the bank will do is tell you their exchange rate and if it is okay by you they will go ahead and issue the naira equivalent to you.
If you have a naira account with the bank, the will transfer the naira equivalent to your account.
Banks like zenith and first bank will require that you write a letter requesting to exchange your dollar to naira using the bank exchange rate. It is not a long process or a big deal wouldn’t take up to thirty minutes to get done with everything.
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2. Through the atm
Withdrawing naira through the atm is another means of withdrawing naira from a domiciliary account.
However, this will only be possible of yo have a dollar debit card.
If you don’t have any, then you have to request one from your bank and it shouldn’t cost more than N5000 to get one though it depends on the bank and their charges but I believe the N5k is general or applicable to all banks in Nigeria.
Once you have gotten the dollar debit card, go ahead and activate the card immediately. Then you are set and ready using your dollar debit card for transactions which includes cash withdrawal both in Nigeria and abroad.
To withdraw naira from your domiciliary account using your dollar debit card, go to your bank atm and insert your card into the atm slot.
Enter your pin and select withdrawal followed by entering the amount you want to withdraw in naira. The dollar equivalent will be deducted from your domiciliary account.
For example, You want to withdraw N50k from your domiciliary account using your dollar debit card. Once you entered N50,000 into the atm and withdrew N50k, the bank will deduct $122 dollar equivalent from your domiciliary account.
Here comes the interesting part.
Im talking about the charges which is way higher compared to using naira debit card to withdraw money from your naira account.
Gtbank charges $3.5 or N1700 for any naira amount you withdraw from your domiciliary account.
Let’s do a calculation here.
As it is quite difficult to withdraw N50k at once through the atm, but rather N20k or N10k, you will end up spending $10.5 or N5100 withdrawing N50k through the atm.
If you want to withdraw N10,000 then you will end up paying a fee of $17.5 or N8500.
Because of this I recommend you to go to the counter and withdraw the money at once as you will be charged $3.5 or N1700 for any amount you withdrew from your domiciliary account.
Note that some banks will require the amount to end in zero figures like $500, $750 or $1500.
Can i transfer money from domiciliary account to naira account?
The answer is no. You cannot transfer money from a domiciliary account to a naira account, instead you can only transfer money from a domiciliary account to another domiciliary account.
Some might think that one of the ways to withdraw money from a domiciliary account in Nigeria is by transferring the cash in a Dom account to a naira account, and later withdraw the money.
To transfer money from a domiciliary account to another domiciliary account, they must be of same bank else nothing will work.
For example, gtbank domiciliary account to another gtbank domiciliary account, access bank domiciliary account to another access bank domiciliary.
It is quite unfortunate that this is how domiciliary account transfer work in Nigeria compared to naira account and for me, it is very annoying.
If you have someone with a domiciliary account with access bank and wants to transfer money from your Dom account to another Dom account with zenith bank or first bank, it won’t work. You need to withdraw the money, go to any Zenith bank or first bank branch and deposit the cash.
With all explained in this article, this is where I come to the conclusion on the question of the day, can i withdraw naira from my domiciliary account. I’m open to your question and suggestions.