Banking to a lot of Nigerians today seems like a fraud. People no longer trust banks because of the exorbitant fees charged from their accounts in the form of SMS charges, ATM maintenance fees, and many others. Aside from these, transactions not being effected in real-time have also caused a lot of grievances in banking halls and on the social handles of most financial institutions.
Skimming through the posts of popular Nigerian financial institutions such as Zenith Bank, Sterling Bank, and Access Bank on Mark Zuckerberg‘s Facebook and Elon Musk‘s X (formerly Twitter), you will find reactions and comments that express the anger and dissatisfaction of affected customers. I once had my share of dissatisfaction after EcoBank refused to release a deposit of ₦77,000.00 (seventy-seven thousand naira) I initiated into my new savings account. After calling them out online without any resolution, I walked into one of their branches and requested to close my account. They offered to grant me access to my savings without closing my account because my voice was so loud in the banking all that day, and all eyes were on me – they did not want to look incompetent to other customers, I guess.
I am a customer of over twenty (20) Nigerian banks. From my experience using these banks’ services, I have curated a list of banks that have the lowest fees in this article and I believe using them will help you make greater financial decisions and save more in fees, especially if you are a student.
Do not be surprised, I barely have a commercial bank on this list. Most of the banks on my list are Microfinance Banks and Payment Service Banks (PSBs) licensed by the Central Bank of Nigeria (CBN) and insured by the Nigeria Deposit Insurance Corporation (NDIC). Let’s meet these banks!
1. PALMPAY
Palmpay Limited is a Payment Service Bank (PSB) in Nigeria. The Payment Service Bank is a global financial service provider with a presence in Ghana, Tanzania, China, Kenya, and London. It started in Nigeria with a Mobile Money Operator License from the Central Bank of Nigeria in 2019.
As of the time of publishing this article, Palmpay has over 32 million active customers and over 1.8 million agents across Nigeria. The company has its headquarters on 20 Opebi Road, Ikeja, Lagos, Nigeria, and has a state centre in almost all the states in Nigeria.
WHY USE PALMPAY?
Palmpay allows you to make over ninety (90) free money transfers monthly to other banks. This incredible feature is not available with other financial service providers. It is broken down into three (3) free transfers daily and unlimited transfers on Tuesdays. This implies that you can make hundreds of interbank transactions on Palmpay free of cost every Tuesday. That sounds great, right?
Aside from that, you can also earn coupons by performing various transactions on the PalmPay application. These transactions can include money transfers, bill payments and airtime purchases. The coupons earned can be in the form of money transfer coupons, telecom discount coupons, data coupons, electricity coupons or loan discount coupons. Using the coupon next time you are paying a bill can help you save more money.
PalmPay also rewards customers with points for every transaction initiated and the points can also be redeemed at the point of performing a future transaction. One (1) PalmPay point equals one (1) Nigerian Naira.
What interests me about PalmPay is the ability to take loans on the app and save money on the app with a mouth-watering interest rate. The most fascinating feature is earning interest on your balance without putting it in a fixed deposit savings. You can do this by putting your balance in the Cashbox and getting paid interest daily on your balance. You can always withdraw money from your Cashbox at any given time. Palmpay also does not charge you a stamp duty fee when you receive over ten thousand naira, unlike other banks.
Palmpay now offers a Verve debit card that allows users to withdraw at Automated Teller Machines, Point-Of-Sale Terminals and local online transactions. To get started with Palmpay, open
2. FAIRMONEY
INTRODUCTION
Fairmoney was founded by a team of Frenchmen in Nigeria in 2017. It started as a loan application that offered loan services to Nigerians.
By 2021, Fairmoney had secured a tier-2 microfinance banking license from the Central Bank of Nigeria, hence, its transition from a Credit Company to a fully-fledged microfinance bank. Fairmoney Microfinance Bank still offers credit services, but it is one of the bank’s many products today. Customers can expect the same quality of service they get from most commercial banks from Fairmoney Microfinance Bank.
WHY USE FAIRMONEY?
FairMoney is one of the best financial institutions in Nigeria at the moment. The bank offers (thirty) 30 free interbank transfers to customers every month. You can exhaust all your thirty free interbank transfers in one day or spread it throughout the month – anyone you choose, the choice is yours!
Customers of Fairmoney also have access to Loans and Savings. You can request a loan on the Fairmoney app and save money on FairLock. Any money saved with FairLock cannot be withdrawn until the saving duration is over. I once tried to contact Fairmoney regarding the FairLock savings I initiated but was informed that the savings could not be terminated. I had to wait until the savings duration was over before I could access my savings.
If you want to save on Fairmoney without needing to lock your capital, move the money to your FairSave wallet and interest would accrue daily on your savings as well.
3. KUDA MICROFINANCE BANK
While Alat by Wema claims to be the first digital bank in Nigeria, I believe Kuda is the first because it revolutionized digital banking in Nigeria. I can say Kuda Bank is the first digital bank in Nigeria because it paved the way for Palmpay, Fairmoney, Opay and Fetzwallet. While Alat by Wema required customers to still walk into their branches to resolve issues on their accounts, Kuda was able to resolve all issues through emails and chat support. Yeah, and that’s the revolution.
It would be a digital bank when I do not need to walk into the bank every time for some paperwork. I hate papers, I wouldn’t say I like filling out forms. So Kuda began operations in Nigeria in 2016 as Kudimoney and finally transitioned into a microfinance bank after a series of funding from investors.
WHY USE KUDA?
Kuda Microfinance Bank offers thirty (30) free interbank transfers to its customers every month. This implies that you can do an interbank transfer thirty times every month without paying a penny in fees. This is mind-blowing, right?
Kuda Bank also has one of the stable networks and any money sent to you can reflect in seconds. Kuda also allows you to get an overdraft whenever your account balance is low. You get to pay a daily interest rate of 0.3% on the principal borrowed.
Kuda Microfinance Bank also allows you to save on the app and earn some interest. If you want a saving that can be withdrawn anytime, choose the flexible savings because the fixed savings cannot be withdrawn until the savings period is over. Customers can earn up to 15% annually on their savings by saving with the Kuda Bank app.
WRAPPING UP: OTHER BANKS, RESOLVING ISSUES
There are other banks that may appear closer to the ones on my list but I did not put them up because of recent reports emerging from users of these applications. From time to time, I will keep updating the list with new credible financial institutions that stands out.
If you are having issues with any of the banking platforms, the best place to reach out to them is through the chat option inside the application. Where an application has no chat widget embedded, the official bank email address should be contacted.
An alternative means of contact is the official social media handles on the financial institutions on Facebook and X (Twitter). Kuda Bank customers can alternatively dial 0700022555832 to get help on complaints resolution.