Tier 2 Account Meaning Explained

Tier 2 savings account: What is it all about, and what does it entail to open a Tier 2 savings account in Nigeria?

This is the main focus in today’s question of the day, tier 2 account meaning.

Normally, when you go to the bank to open a bank account, you are likely going to open a tier 3 or level savings account, which requires a utility bill, a passport, and an ID.

But what about tier 2 account?

Well, let’s proceed.

Tier 2 account meaning

A tier 2 savings account in Nigeria simply means a salary account or a bank account you can open without a utility bill.

Tier 2 savings accounts have a limited cumulative balance, unlike tier 3 savings accounts, which have no such limit.

In Nigeria, we have a tier one account, tier two account, and a tier three account.

An instant account that you opened using the bank USSD code or mobile app is a tier one account, and this also includes a student account.

A bank account that you opened using only your BVN and an ID without a utility bill is a tier 2 savings account. This mostly occurs when opening a salary account.

A typical example is bank account opened in NYSC Orientation Camp.

During the NYSC Orientation Camp, corps members will be assigned to different banks to open an account for their monthly allowance (Allawee), even if they had an account before NYSC.

That very account you opened at the NYSC Orientation Camp is a tier 2 account, and the account has limitations because you did not open a standard or regular account, which requires a BVN, ID, passport, and a utility bill.

A salary account that you opened is also a tier 2 account and has its limit.

The truth is that a tier 2 savings account is far better than a tier 1 savings account because of its limitations.

Now, let me explain the limits.

Don’t Miss: Tier 3 savings account in Nigeria explained

Tier 2 savings account limit

A tier 2 account is limited to N100k single deposit and N500k cumulative balance, depending on the bank you opened the account with.

I’m saying this because the limits differ from bank to bank.

Maximum Single Deposit Limit

There is a maximum amount you can deposit at one time, usually determined by the bank but typically within ₦50,000 to ₦100,000.

Mostly, the maximum single deposit is N100k but can go up to N5,000,000, depending on the type of account you opened.

Before you open a tier 2 account with any bank, first ask about their maximum daily single cash lodgement or deposit limit.

This is very essential, especially if you know how much you will be receiving for your monthly salary or allowance.

I know that a single deposit can go as high as N3,000,000 for some banks like Zenith, while some is around N1,000,000.

If your salary is above the limit, then you will be required to open a tier 3 savings account.

Daily Transaction Limit

This is very crucial when it comes to transferring money from your account or cash withdrawal.

A tier 2 account is limited to a N200k daily transaction limit and that cannot be exceeded unless you upgrade your account.

So, this means you can withdraw more than N200k from your bank account or transfer more than N200k from your account per day.

However, some banks do have a maximum daily transfer limit of NGN1,000,000, and an example is Wema Bank, which offers a higher transfer limit for its tier 2 account.

Maximum Cumulative Balance

This is all about the maximum amount of money you can have in a tier 2 account, which ranges from N500,000 to N5,000,000.

Typically, the cumulative balance in a tier 2 account is N500,000, but it can go as high as N5,000,000 depending on the bank and what they offer.

Now, listen. If you plan on using a tier 2 account for your savings and your monthly salary is large, please consider using a tier 3 account to receive your salary.

A tier 2 account may not be sufficient for you.

Don’t Miss:

• Tier 1 Account Meaning Explained
• What Is A Domiciliary Account? Detailed Explanation

Access bank tier 2 account limit

The Access Bank Tier 2 account operates under the Central Bank of Nigeria’s (CBN) Tiered KYC framework, and it comes with specific transaction and balance limits.

Here are the key limits for a Tier 2 account with Access Bank:

Limits for Access Bank Tier 2 Account

1. Maximum Single Deposit Limit: Typically no fixed limit, but subject to the daily single deposit of N100k
2. Daily Transaction Limit: The total allowable transactions (withdrawals and transfers) per day is ₦200,000.
3. Maximum Cumulative Balance: The maximum amount that can be held in the account at any given time is ₦500,000.

This is Access bank tier 2 account limit as at the time of writing this post.

Uba tier 2 account limit

A UBA Tier 2 account is designed to provide a convenient banking option with moderate transaction limits while requiring minimal documentation.

Under the Central Bank of Nigeria’s Tiered KYC framework, Tier 2 accounts come with specific limits on transactions and balances.

UBA Tier 2 Account Limits

1. Daily Transaction Limit: The maximum allowable withdrawals or transfers per day is ₦200,000.
2. Maximum Cumulative Account Balance: The total amount that can be held in the account at any time is capped at ₦500,000.
3. ATM and USSD Transactions: These are limited to N20k for USSD and N50k for ATM withdrawals.

Fidelity bank tier 2 account limit

• Daily Transaction Limit: The total allowable withdrawals or transfers per day is ₦200,000.
• Maximum Cumulative Account Balance: The account balance at any given time cannot exceed ₦500,000.
• Deposit Limits: No fixed single deposit limit, but deposits must not cause the account balance to exceed the ₦500,000 cap.

Wema Bank tier 2 savings account limit

• Daily Transaction Limit: You can make withdrawals or transfers up to ₦200,000 per day.
• Maximum Cumulative Balance: The total account balance is capped at ₦500,000.
• Deposit Limits: While there is no strict limit on individual deposits, deposits must not cause the account balance to exceed ₦500,000.

Tier 2 account limit kuda

• Daily Transaction Limit: You can make withdrawals or transfers up to ₦200,000 per day.
• Maximum Account Balance: The total balance allowed in the account at any given time is ₦500,000.
• Deposit Limits: While there is no specific restriction on individual deposits, your account balance cannot exceed ₦500,000 at any time.

A tier 2 account has no minimum balance but rather has a cumulative balance which is between N500k to N5,000,000 respectively.

However, in most banks, the maximum account balance for a tier 2 account is N500,000.

Now listen, if these limits are not okay by you, then you have the option to upgrade your account to a level 3 account or a tier 3 account which is unlimited.

Other things to know

1. You can request a debit card for a tier 2 account.
2. There’s an interest rate for a tier 2 account.
3. Opening a tier 2 account requires just your ID which can be a school ID, NYSC ID, or office ID.
4. BVN is required for a tier 2 account.
5. Utility bill like electricity bill or rent bill is not required unless you want to open a tier 3 account.

And this is where I conclude today’s topic: Tier 2 account meaning in the Nigerian banking industry.