What is a Domiciliary/Dollar Account, and how does it work?
A domiciliary/dollar account (sometimes referred to as a “Dom Account”) is an account that solely takes foreign currency such as pounds, euros, and dollars. It does not, however, take Naira, Nigeria’s currency.
This account can only take money in foreign currencies (not Nigerian Naira) and it is different from other kinds of bank accounts. It is exclusively used for commercial transactions rather than savings.
As a result, it may be used to send money to another nation or to receive foreign currency from an account in another country.
As an individual or a business person, making and receiving payment in a foreign currency is easier done through the domiciliary account. Having a domiciliary account is very important especially in Nigeria where the economy is unstable, making it essential for people to save in a foreign currency as a way to protect their money from losing value.
A domiciliary account accepts foreign currencies such as euros, dollars and pounds. The domiciliary account works like any other savings account. If it is a dollar account, the money will be sent in dollars, likewise Euro or pounds. You can also withdraw the foreign currency from your bank and either change it at bank rates in the bank or at the parallel market (black market).
Why do you need a domiciliary account?
Domiciliary accounts are important if you want to start receiving money from abroad. You can easily open a ‘dom’ account with most Nigerian banks and with it, you can:
- Receive payment in foreign currencies (USD, EUR, GBP).
- Transfer funds abroad.
- Get attractive interest rates and hedge against inflation.
- Carry out both local and international transactions easily. This is a good option for people who do business internationally.
- Use it to buy products on any online platform.
How to open a domiciliary/dollar account in Nigeria
The requirements for opening a domiciliary account varies depending on the bank but they are fundamentally similar. Here are the basic requirements for opening a domiciliary/dollar account in Nigeria.
- Referees: Two current account holders (preferably with the same bank) to sign the reference forms.
- Duly filled domiciliary account opening form.
- An existing naira account with the bank. It can either be a savings or a current account.
- Valid means of identification: either an international passport, permanent voters’ card, National ID card, or a driver’s license.
- Passport photograph.
- Utility bill issued within the last 3 months.
Some banks may require additional information from you but those listed above are the minimum requirements that will need for your dorm account to be created.
How long does it take to open a domiciliary/dollar account in Nigeria?
On an average, it should takes 48-72 hours to activate a domiciliary account. But as soon as your account is active, you can start receiving and withdrawing foreign currencies like the US dollar, Euros etc.
What are the Best Banks for Opening a Domiciliary/Dollar Account in Nigeria?
- First Bank Domiciliary Account
- Zenith Bank Domiciliary Account
- UBA Domiciliary Account
- GTBank Domiciliary Account
- Union Bank Domiciliary Account
- Fidelity Bank Domiciliary Account
- Access Bank Domiciliary Account
- First City Monument Bank (FCMB) Domiciliary Account
- Stanbic IBTC Bank Domiciliary Account
- Polaris Bank Domiciliary Account
How much can I use to open a domiciliary/dollar account in Nigeria?
With a minimum opening balance of $50, €50 or ₤50 you can open a Dom Advantage Account. This account can be the Savings variant or the Current account variant. It is available in USD, GBP and EURO.
Would you like to open a domiciliary/dollar account in Nigeria? I hope this article is at your best interest. Follow up our next article to learn more about domiciliary/dollar accounts in Nigeria. Don’t forget to like, share, drop your comments below and click here to follow our Facebook page to stay updated.