Benefits of a Domiciliary bank account

Posted by Felix Okoli on Tuesday February 19, 2013 at 17:46:40:

By January 1995, the value of the naira for $1 was at around N21. Ten years later, the value of the naira has dropped from N21 to aroud N153 showing a depreciation of about 700%.

One of the best ways to save money in a bank without having to let it lose value over the long term is by saving it in a global currency that is reliable.

A domiciliary account from your bank offers you the opportunity to do this. With a savings domiciliary bank account for instance, you can save your funds in the US dollar or pounds without having to bother about the continuing depreciation of the naira.

One of the reasons why people, especially the old, keep losing money in Nigeria is by holding on to the naira. The CBN of Nigeria holds our foreign reserve in USD is because they trust the currency more. Nigeria still is a growing economy and the chances of a stable naira is not as strong as that for the USD. So, it really makes sense to save money in USD, at least until you need to use the money.

Imagine if you have a savings domiciliary account 10 years ago holding about $10,000 worth of funds, by now that funds would have appreciated about 700% relative to the value of the naira.

One benefit of having a domiciliary account is that you can withdraw from it when you need to solve some urgent need for cash by converting it to the naira anytime you want. So, you funds in a domiciliary account are safe from depreciation while also offering you a higher value in the long term.

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Re: Benefits of a Domiciliary bank account Reply by Benedict Hassan Borash on Tuesday April 16, 2013 at 16:10:1:

A very nice tip.thanks.




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Re: Benefits of a Domiciliary bank account Reply by obi on Monday September 9, 2013 at 19:21:8:

Exactly the info am searching for.kiu




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