You might be wondering, what is the need of opening a domiciliary account. Why did I even need a Domiciliary Account? And what is the advantage of a domiciliary account? Before we answer your question, let u see what is Domiciliary Account and how you can get one.
All About Domiciliary Account
A domiciliary account is the type of Bank account that allows you to fund it with foreign currencies such as dollars, Pounds or Euros and also enables you to do foreign transactions on that account.
This means you can use the domiciliary account to transfer money from foreign countries like the USA, UK, Canada, Dubai etc and you can also use a domiciliary account to receive money in dollars, pounds or euros from another country in Nigeria.
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The sole aim of a domiciliary account is to help you carry out your business transaction and not for saving purpose. You can actually use it to save money if you want but the main purpose of this type of account is for the foreign business transaction.
To fully operate with a domiciliary account, you will have to open it with any Bank in your country where you live. After opening the account, your account details will be given to you which you will send to the person abroad that want to send money to you. You will also be given a dollar MasterCard after you successfully open a domiciliary account which you can use to make online purchase and others.
The advantages of a Domiciliary Account
Now let’s see the advantage and benefits of a domiciliary account.
Receive Any Currency Directly To Your Account: Most of the problem we faced is the official bank currency covert. If you are a blogger reading this you will agree with me that all bloggers need a domiciliary account or Payoneer account so that they can receive their money in the foreign currency and convert it anytime they want.
Traditionally, the bank will be the one to convert any currency sent from abroad to you which is not always at the black market rate. For example, a dollar is equal to around N360. Now when you receive any foreign currency into your local bank account the bank will convert it at their official rate which will be around N320 instead of N360.
But with a domiciliary account, you will be the one to exchange your foreign currency to Naira. You can sell it at any rate and you can also use to pay foreign hosting or buy anything on the foreign website which will be more cheaper.
Imagine banking charging me N360 anytime I make foreign payment using my Naira MasterCard but if they want to convert my foreign currency to Naira they will convert it to N320 per $1. I don’t know about you but I think this is pure cheating.
Pay For International Transaction: Just as stated above, with a domiciliary account and your dollar MasterCard on your wallet you can pay for any foreign transaction anywhere in the country. You can renew your hosting plan and can buy any paid software or purchase any game on Google PlayStore. This is one of the best things about domiciliary account for bloggers and businessmen.
Control Over Unstable Currency: It’s no longer news that Naira has he fluctuating over the years. The Naira exchange rate has been a course to worry about especially for those that import from foreign countries.
With a domiciliary account, you don’t have anything to worry about as long as you have a fund on your account you can buy and carry out any foreign transaction anytime any day.
Saving In Foreign Currency: You read that right. First Bank allows you to save in US Dollars, Pounds Sterling or Euro using the domiciliary account. And your money will be valued at the prevailing exchange rate.
Most Banks in Nigeria now allows their customers to open a domiciliary saving account but before then you will need a minimum amount of $500, €500 or £300. This depends on the bank policy and rules.