Going to the bank to open a new bank account, upon filling the form you saw tier 1 account. Definitely you will get confused as to what it means, what the bank meant by the tier 1 savings account on the form.
This is missybanker, and I’m here to explain to you what it means, the meaning of a tier 1 account in Nigeria.
All I need from you is to read the post from the beginning and until the very end of the post cause it will be helpful to you during account opening in Nigeria.
So let’s jump in.
What is a tier 1 account in Nigeria
A tier 1 account is a level 1 entry in a savings account in Nigeria, in which an individual can open without having the mandatory requirement to open a standard or regular account in Nigeria.
That is to say that this type of savings account doesn’t require an utility bill, or even an ID to open the account.
This is the fastest account to open in Nigeria as you can open the account withour going to the bank and instead use your mobile phone.
When you open a savings account using your mobile phone whether online or offline, you opened a tier 1 account in Nigeria and this type of savings account is restricted so much. I will explain thar later in this post.
Now you have seen the meaning of a tier 1 account in Nigeria, let give you a typical example or probably examples of this type of savings account.
Examples of a tier 1 account
Below are typical examples of a tier 1 account in Nigeria;
1. Account opened using a mobile phone
The first example on the list, and yes, the instant savings account you opened using your mobile phone is a tier 1 account in Nigeria cause you didn’t provide an utility bill or an ID during account opening.
All instant bank account in Nigeria is a tier 1 savings account, and this includes the likes of; First bank firstInstant account and other instant accounts.
So any type of bank account you opened using your mobile phone, whether online or offline is a tier 1 account in Nigeria.
2. Tier 1 account: Student account in Nigeria
Another typical example of a tier 1 savings account in Nigeria is the student account. A student account requires only a student ID card or maybe a school fees receipt, or an acceptance fee receipt in Nigeria.
When you opened this type of account, be rest assured that you opened a tier 1 account in Nigeria. But note that a student account can be upgraded or updated, and once you have done that, it will no longer be a tier 1 savings account.
● Don’t miss Maximum amount for student account in Nigeria
So now you have seen the examples of a tier 1 account, let’s move over to the limits cause it is very important to know the limit.
Tier 1 account limit in Nigeria
This is the main deal or probably i will say the main koko. How much you receive or have in a tier 1 account in Nigeria.
In Nigeria, tier 1 savings account is limited to fifty thousand naira (N50k) per single cash deposit. That is to say that you cannot receive more than fifty thousand naira at once in this type of account.
Let’s say you have someone that wants to send fifty five thousand naira into your account, it will never go through because the amount has exceeded the maximum single cash deposit for a tier 1 account in Nigeria which is fifty thousand naira.
Again, the tier 1 savings account is limited to a maximum operating balance of three hundred thousand naira (N300k).
With this, you cannot have more than three hundred thousand naira in your savings account.
For example, you have two hundred and seventy six thousand naira (N276k) in your savings account, then someone send one hundred thousand naira(N100k) into your account, it will not go through because the amount will be N366k and which has exceeded the maximum operating balance for a tier 1 account in Nigeria, and which is three hundred thousand naira (N300k).
What will happen to the money if the amount is exceeded
If you received an amount that has exceeded the operating balance and single cash deposit, what happens.
What will happen is that the bank will put the transaction on hold, put a call to you and request that you should come andupgrade or update your account.
I recommend you to read how to upgrade your bank account in Nigeria.
After upgrading your bank account, the sent amount will be moved or forwarded to your bank account.
Difference between tier 1 and tier 2 accounts
The difference between a tier 1 and a tier 2 accounts are the limits on the two accounts, as the tier 1 savings account is limited to a N50k single cash deposit and N300k maximum operating balance, the tier 2 account is limited to N100k single cash deposit and an operating balance of N500k to N1M.
The tier 1 account can be opened with or without an ID, while the tier 2 account requires an ID to open the account. A typical example of a tier 2 account is a salary account in Nigeria.
A tier 1 savings account can be opened using a mobile phone or through online, a tier 2 savings account cannot be opened using a mobile phone or through online.
Do i recommend tier 1 account
Yes of course, I do recommend this type of account if you’re desperately in need of a savings account in Nigeria, afterwards you should go ahead and update or upgrade your bank account.
However, if you have the necessary requirements to open a three level savings account in Nigeria, I recommend you to please open a tier 3 or regular savings account.
It only requires you to have;
- Last three months utility bill
- A means of identification like the permanent voter’s card, driver’s license, international passport, or the national ID
- A passport
There’s no limit on the tier 3 savings account in Nigeria cause it is the standard or regular savings account according to the central bank of Nigeria.
How to open a tier 1 savings account in Nigeria
You can open a tier 1 account using your mobile phone, you simply need to dial a bank ussd code and you will see the code to open an account. Remember, the account is called an instant account and below are the bank ussd code to open an instant account.
Zenith bank – *966#
First bank – *894#
Gtbank – *737#
UBA – *919#
FCMB – *329#
Stanbic Ibtc – *909#
Polaris bank – *833#
Ecobank – *326#
Union bank – *826#
Access bank – *901#
Wema bank – *945#
You can download a bank mobile app, and through the app open an instant account with the bank. So what you have to do is to open the google play store or the apple store, and search for the bank app.
For example, you want to search for access bank mobile app, open the app store and enter access bank mobile app and you will the bank app in the store.
Having downloaded the bank mobile app, open the app and you will see the option to open a new account with the bank and proceed from there.
For student account, you must go to the bank to open the account with only your account ID and a passport. You can’t create a student account using your mobile phone unless you want to open an instant savings account.
● Don’t miss Access bank student account limit in Nigeria
There’s no much to say on this post of tier 1 account in Nigeria, and if you’re still confused or have questions to ask, I’m open to your comments.