{"id":12697,"date":"2017-04-30T17:35:37","date_gmt":"2017-04-30T16:35:37","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=12697"},"modified":"2017-04-30T17:35:37","modified_gmt":"2017-04-30T16:35:37","slug":"what-banks-are-allowed-to-charge-your-bank-account","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/what-banks-are-allowed-to-charge-your-bank-account\/","title":{"rendered":"What banks are allowed to charge your\u00a0bank\u00a0account"},"content":{"rendered":"

\nThe Central Bank on Nigeria released a new\u00a0set of guidelines to charges\u00a0for\u00a0banks and other financial institutions last week. The new charges are effective tomorow (May 1 2017).<\/p>\n

Here are the key things you need to know about these charges. (You can download the guidelines by following the link above, and then read through with the explanations below.)<\/p>\n

Interest on deposits (Page 6)<\/p>\n

Banks are mandated to pay an interest of not less than 30% of the monetary policy rate for any cash on savings deposits.<\/p>\n

This translates to about 4.2% per annum considering that the MPR as at March 2017 was 16%.<\/p>\n

The MPR is the rate at which banks borrow money from the CBN.
\nFor deposits held as collateral, the bank will pay a negotiable interest rate subject to a minimum of 30% of MPR.<\/p>\n

This means, if you take a loan from a bank and use your cash deposits as collateral, the bank will pay you a minimum of 30% of MPR , which is 4.2%.<\/p>\n

Interest rates and lending fees (Page 7,8 &9)<\/p>\n

For local currency loans, the CBN says interest rates are negotiable but should reflect MPR.<\/p>\n

Thus, when banks want to charge you interest rate on loans it will be MPR plus XX%.<\/p>\n

Banks are also mandated to notify their customers 10 business days in advance whenever there is a rate change.<\/p>\n

For mortgage refinancing, the CBN says rates are negotiable subject to a maximum of MPR plus 5%.<\/p>\n

This means those seeking mortgage loans can expect to pay at least 19%, based on the current MPR of 14%.<\/p>\n

For defaulters, the CBN places a maximum of 1% flat per month of unpaid amount in addition to charging current rate of interest on outstanding debt.<\/p>\n

Management fees charged on loans is limited to a maximum of 1% of the principal amount disbursed and should be a one-off charge.<\/p>\n

Facility Enhancement fee will attract a negotiable but subject to a maximum of 1% of the additional charge discharged. For example, if you collected a loan of N100m and decided to add an extra loan of N10m from the same bank under the same facility, the bank will only charge a maximum one-off fee of 1% of the N10 million.<\/p>\n

Management fee and Facility Enhancement fee cannot be charged same time.<\/p>\n

Management fees are only charged for all shared requests and renewal of expired facilities.<\/p>

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Restructuring fee is also negotiable but subjected to a maximum of 0.5% of the outstanding amount being restructured. It is also one-off.
\nFor example, if you have a loan that you want to restructure, either for a longer tenor or lower interest rate or increased facility amount, you will have to pay a restructured fee.<\/p>\n

Commitment fees are also negotiable subject to a maximum of 1% on the undisbursed amount of the facility. This is also one-off
\nFor example, if you obtained a facility of N100m and have been disbursed N20m from bank, based on your disbursement terms, the bank can charge you 1% for the balance N80m.<\/p>\n

Other fees (Page 10, 12, & 17)<\/p>\n

Current account maintenance fee (CAMF) will be charged at a negotiable but subject to a maximum of N1 per mille when you initiate a transfer out of your account.<\/p>\n

For forex transfers out of your accounts using swift, you will be charged o.5% COT plus any other associated off shore transfer charges. Thus, if you transfer $1,000 from your domiciliary accounts, they will charge you $5.<\/p>\n

Withdrawals on domiciliary accounts attract a charge of 0.05% of transaction value or $10 whichever is lower. This means they can\u2019t charge you more than $10 for withdrawals.<\/p>\n

Bank drafts still remain the same at N300 and N500 from current and savings account respectively for account holders. It is N500 plus 0.1% of draft value for non-customers.<\/p>\n

Banks can also charge N100 flat as processing fee for purchase and sale of treasury bills for their customers.<\/p>\n

Electronic Banking Charges (Page 18)<\/p>\n

New hardware tokens will cost a maximum of N3,500
\nWhile software tokens are free, banks will charge an SMS rate of not more than N4\/SMS.<\/p>\n

If you lost your hardware token and want it recovered, you will be expected to pay a maximum of N3,500.<\/p>\n

However, you bear the full cost only\u00a0in the event of physical damage, loss of token or replacement after expiration.<\/p>\n

Electronic fund transfers will now incur a charge of N50 if below N10 million. Transfers above N10 million will also cost N50 flat.
\nRTGS transfers will cost N550.<\/p>\n

Banks are allowed to charge card maintenance fees at $20 per annum (or its equivalent) for foreign currency denominated debt\/credit cards.
\nNaira debit\/credit cars will cost N50 monthly in card maintenance fees.<\/p>\n

Banks will also charge you N1,000 one-off charge for issuance of debit cards. If you lose the card and want it replaced it will also cost N1000 one-off.<\/p>\n

On-us withdrawals are free while not-on us withdrawals incure a charge of N65 after the third withdrawal within the same month Banks are also allowed to continue to charge you not more than N4\/SMS for transactions initiated by you. This is provided that you requested for this service.<\/p>\n

Source:Nairametrics<\/p>\n","protected":false},"excerpt":{"rendered":"

The Central Bank on Nigeria released a new\u00a0set of guidelines to charges\u00a0for\u00a0banks and other financial institutions last week. The new charges are effective tomorow (May 1 2017). Here are the key things you need to know about these charges. (You can download the guidelines by following the link above, and then read through with the …<\/p>\n","protected":false},"author":11,"featured_media":12516,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[17],"tags":[36],"coauthors":[2392,2393],"class_list":["post-12697","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news","tag-cbn"],"yoast_head":"\nWhat banks are allowed to charge your\u00a0bank\u00a0account - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/what-banks-are-allowed-to-charge-your-bank-account\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What banks are allowed to charge your\u00a0bank\u00a0account - National Wire\" \/>\n<meta property=\"og:description\" content=\"The Central Bank on Nigeria released a new\u00a0set of guidelines to charges\u00a0for\u00a0banks and other financial institutions last week. 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