In the Nigerian banking industry, we have three levels of savings accounts: tier 1 (level 1), tier 2 (level 2), and tier 3 (level 3) accounts.
In this article, we’ll be looking at the tier 1 account meaning, what it involves, and the requirements for opening a tier 1 account in Nigeria.
Now, listen. A tier 1 account is the same as a level 1 account. Some banks will say “tier 1 account,” while others will say “level 1 account,” but they mean the same thing.
Tier 1 account meaning
A tier 1 account is an entry-level savings account in Nigeria that may not necessarily require a bank verification number.
It is much easier to open a tier 1 savings account, especially with the help of a bank USSD code or mobile app, and it doesn’t require a bank verification number.
One of the fastest ways to open a tier 1 savings account is by using the bank’s instant account USSD code.
Every bank in Nigeria has an instant account USSD code which you can use to open a savings account using your mobile phone.
Another way is to open a student account, as it is a typical example of a tier 1 or level 1 account in Nigeria.
However, the tier 1 type of savings account comes with many restrictions, which makes me not fancy it at all.
So i will go ahead and explain the restrictions.
The restrictions
- A maximum of N50k to N100k per deposit or cash lodgement.
- A maximum of N300k operating balance.
- No interest rates.
1. A maximum of N50k to N100k per deposit or cash lodgement: In this type of account, you can only transfer a maximum of N50k per a single transfer or cash deposit in some banks.
Some banks allow a maximum of N100k per single cash deposit, lodgement, or transfer.
And you cannot exceed this limit.
If you want to exceed the limit, you will have to upgrade your bank account.
So, if you know that you can receive more than N100k per single transfer into your account, then you should forget about opening a tier 1 bank account because it is not for you.
2. A maximum of N300k operating balance: This means that you can’t save more than N300k or have more than N300k in your saving account.
If your bank account balance is N260k and someone sends N50k to your account, the money will not enter as the bank will put the transaction on hold and request that you upgrade your bank account.
Once youbhave upgraded your bank account, the money will be received or enter into your account.
However, if you do not upgrade your account, the bank will reverse the money back to the sender.
If you know that you can have more than N300k in your savings account, please ignore opening a level 1 savings account because it is not for you.
3. No interest: This is one of the restrictions of opening a level one account in Nigeria, you won’t receive interest from your bank.
If you care about interest, then I recommend opening a Tier 3 savings account.
Don’t Miss: Tier 2 account meaning explained
How to open a tier 1 account
To open a tier 1 savings account, simply dial the bank’s instant account USSD code on your mobile phone and follow the on-screen instructions to open your account.
This will not take more than 10 minutes to open your account.
Within the next 24 hours, you will receive your bank account.
However, some banks will request for a passport photograph.
For example, if you want to open a tier 1 account in access bank using the bank mobile app, a passport photograph is needed.
Same goes to first bank though you can still use the ussd code to open a first bank instant account.
To open an instant bank account, simply dial the USSD code provided by your preferred bank and follow the on-screen instructions.
Please note that a BVN is not required for this process.
Note that if you want to withdraw the money or perform a debit transaction, it will be restricted until you enroll for bvn.
Some banks may need your nin for a level 1 account.
So it is necessary to get your preferred bank’s requirements before going ahead to open a tier 1 account.
Right now, I notice that they always ask for NIN if you don’t have a BVN.
Student account
A student account is a typical example of a tier 1 account in Nigeria.
However, there are types of student accounts that you can open without a BVN but rather using a NIN, and student accounts that you can open using both a NIN and BVN.
The student account you can open with just your nin have a limit of N50 cash lodgement, and N300k operating balance.
The student account you can open with both nin and bvn has a limit of N100k cash lodgement, and N1M to N3M operating balance depending on the bank.
Tier 1 account limit
Tier 1 account limit is N50k to N100k per cash lodgement, and a maximum of N300k operating balance.
This cannot be exceeded.
If you want to exceed the limit, then you must upgrade your bank account.
- Access Bank tier 1 account limit: Access Bank has a maximum cash lodgement of N50k and cumulative balance of N300k.
- Fidelity Bank Tier 1 account limit: Fidelity Bank has a maximum deposit of N50k and cumulative balance of N300k.
- Wema Tier 1 savings account limit: Wema Bank has a single deposit of N50k and cumulative balance of N300k.
- zenith bank tier 1 account limit: Zenith bank has a single deposit of N50k and cumulative balance of N300k.
This also includes First Bank Nigeria, which also has a single deposit of N50k and a cumulative balance of N300k.
This is a general limit for a tier-1 savings account, which I believe was assigned by the Central Bank.
Here’s the question;
Do i recommend opening a tier 1 savings account? The answer is no. I don’t recommend opening a tier 1 savings account because of the limits, which are not sufficient for me.
Time will come when you will need to upgrade your account, and you will still have to queue up in the bank hall just to upgrade your bank account.
To save yourself the stress, open a proper or standard savings account in Nigeria, which is the level 3 or tier 3 savings account.
This is where I come to the conclusion of today’s question of tier 1 account meaning and it’s limt. I’m open to your comments and suggestions.