Welcome Today we’ll talk about the Best Banks with Low Charges in Nigeria.
High and inconsistent bank charges have frustrated many Nigerians for long. However, with intense competition in the banking industry, some banks now offer affordable pricing and transparency on associated fees to attract customers.
In this article, we review the financial institutions providing exceptional services at the lowest costs in the Nigerian market currently.
Bank costs have for long been a major worry for account holders in Nigeria. Apart from account maintenance fees, charges also apply for virtually every transaction from deposits to transfers to withdrawals.
These myriad charges eating deep into account balances prompted the Bankers’ Committee to introduce tariff advisory guiding banks on maximum chargeable amounts on various services.
While guidelines are helpful, some banks still impose excessive charges through creative loopholes or hiding behind vague terminology. However, a few transparent institutions are providing optimal services at the lowest real costs.
Factors Influencing Bank Charges in Nigeria
Below are key determinants of fees imposed by Nigerian banks:
- Account type – Current/savings accounts have lower charges than business or corporate accounts
- Transaction channel – Fees for digital channels like USSD, apps lower than branches
- Transaction type – Charges highest for interbank transfers and withdrawals
- Customer segment – Premium/affluent clients enjoy fee waivers or concessions
- Regulations – CBN oversight limits arbitrary charges imposition
- Competition – Banks with focus on mass market retail reduce fees
Overview of Top Banks Offering Lowest Charges
After extensive research across over 20 Nigerian banks analyzing their tariff structures and customer feedback, these institutions offer the best services at the most competitive rates currently:
1. ALAT by Wema
ALAT, the fully digital bank from Wema Bank, makes low-cost banking possible for Nigerian retail customers. They offer zero charges on most transactions with very minimal fees on others.
2. VFD Microfinance Bank
VFD provides mass market and youth-focused accounts with little or no charges for transactions, withdrawals, transfers and even loan processing relative to commercial banks
3. Standard Chartered Nigeria
Standard Chartered’s unique Value Plus Propositions bundles eliminate charges on select frequently used services for premium clients meeting set criteria.
Detailed Review of Low-Fee Banks in Nigeria
ALAT by Wema Bank
ALAT is the flagship digital bank from Wema Bank targeting youths and mass-market consumers. They offer goal-based savings and personal loans in addition to current/savings accounts protected by the secured ALAT Pay platform for seamless payments and money transfers.
Key reasons ALAT has the lowest charges include:
- Zero account opening fees
- No account maintenance/management fees
- Free debit card issuance
- Zero charges for electronic transfers
- Free P2P and structured money transfers
- 5 free withdrawals/month at ALAT/Wema ATMs
VFD Microfinance Bank
Though not a commercial bank, VFD MFB deserves mention for offering the most affordable financial services in Nigeria. With youth-focused products, VFD charges little or nothing for transactions despite not enjoying scale advantages of tier-1 banks.
Low charges offered include:
- Zero current account opening fees
- Free interbank transfers and payments via VFD digital channels
- No limit to free withdrawals from VFD ATMs
- No management fees when account balance exceeds ₦5,000
- Very low admin charges for loan processing
Standard Chartered Bank Nigeria
Though traditionally catering to affluent clients, Standard Chartered now offers digital Retail Value Propositions bundling attractive benefits like fee-free transactions for regular retail customers.
Key propositions driving low charges include:
- Unlimited free debits with Sky View Premium account
- Zero interbank transfer fees with Social Banking Bundle
- 5 free transfers/month to other Nigerian banks via digital channels
- Free debit card issuance for frugal banking clients
Tips to Avoid High Charges at Nigerian Banks
To enjoy low banking costs in Nigeria, apply these wise tips:
- Open account with branches of identified low-fee banks
- Negotiate preferential pricing as premium/affluent banking client
- Route transactions via digital channels which attract lower charges
- Consolidate multiple accounts into provider with lowest costs
- Query unclear transaction debits promptly to prevent recurrence
FAQs About Best Banks with Low Charges in Nigeria
1. Which bank has zero account opening fees?
ALAT, VFD Microfinance bank offer absolutely zero naira account opening fees currently unlike most commercial banks charging upto ₦5,000.
2. Which bank has the lowest interbank transfer charges?
Standard Chartered Nigeria provides completely free interbank transfers under its Social Banking bundle for customers meeting set eligibility criteria currently.
3. What is the smallest MFB bank in Nigeria?
With network of just 16 branches nationwide and customer base under 100,000, Infinity MFB is technically the smallest microfinance bank in the Nigerian market presently.
4. Is there any bank that offers free debit card in Nigeria?
Yes, Standard Chartered issues free debit cards to qualifying low-income customers under its frugal banking proposition to drive financial inclusion.
5. Which bank has lowest ATM withdrawal charges?
ALAT by Wema emerges top by allowing 5 free withdrawals monthly. VFD MFB also does not limit free withdrawals from any of its machines nationwide.
6. Can I negotiate bank charges if I maintain high account balance?
Yes, banks offer concessions to affluent clients with sizeable deposits. You can bargain down account costs by committing to keep agreed minimum balances monthly.
7. Are fintech bank apps cheaper than commercial banks?
Yes, as digital banks like ALAT have lower operating costs, they extend savings to customers in form of little or no charges for transactions despite lower scale.
8. Is there a Nigerian bank that does not charge for transfers?
ALAT provides completely free unlimited transfers on all channels – app, USSD etc. Standard Chartered also offers bundles including zero-charge transfers.
9. Which bank is 100% free of all charges in Nigeria?
There is currently no Nigerian bank operating that has eliminated charges COMPLETELY across all customer segments and transaction types. However, ALAT by Wema is closest with minimum fees on few transactions only.
10. How can students enjoy low bank charges?
Students can open student accounts with banks like ALAT, Standard Chartered that offer concessions or negotiate custom packages like duty waivers with campus branches to minimize costs.
11. Is there any bank that gives interest on current account?
Yes, Standard Chartered Bank Nigeria provides interest on current account balances above ₦1 million under its premium proposition to attract funds from more affluent clients.
12. Which Nigerian bank has the simplest account opening process?
ALAT (Wema Bank) has the simplest and fastest digital account opening process completed entirely online/on app within 5 minutes without visiting physical
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Conclusion
After reading this blog you know about Best Banks with Low Charges in Nigeria.
