Opening a dorm account is very important especially in Nigeria where the economy is very unstable, making it essential for people to save in a foreign currency as a way to protect their money from losing value.
As an individual or a corporate entity, making and receiving payment in a foreign currency is easier done through the domiciliary account.
What is a Dormiciliary Account?
A domiciliary account (most times referred to as a “Dom Account”) is a type of current account that allows you to make and receive payments in foreign currency. It 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.
Why you should have a domiciliary account
Domiciliary accounts are important if you want to start receiving money from abroad. You can easily open a dorm 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, especially freelancer and bloggers.
- Use it to buy products on any online platform.
- Receive your Google AdSense payment.
How to open a domiciliary account in Nigeria
The requirements for opening a domiciliary account vary across different Nigerian banks, but are fundamentally similar. Here are the basic things that your bank will likely request of you.
- 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.
Various banks may require additional information from you but those listed above are the minimum requirements that will need to meet, for your dorm account to be created.
So, if you fall in the category of individuals that need a dorm account here in Nigeria, why not walk around into any Commercial Bank of your choice with the requirements listed above and open a Dorm Account in Nigeria.