By FELIX OLOYEDE
People often want the flexibility associated with current bank account, but are put off by the cost attach to it and its opening requirements, especially being asked to get three people who operate current account to fill referee forms on their behalf.
The COT charge on transactions carried out in current accounts always make who run small businesses repel them from going operating them. They see this as burdensome.
Aware of this, banks have come up with accounts that combine cost saving features of a saving account and the flexibility connected with current account. This account is christened hybrid account. But each bank has a brand name for its hybrid account. Here are some hybrid accounts of some first tier banks in the country.
FirstSaving Plus is a hybrid savings account designed by First Bank of Nigeria. It is an account which runs on a savings platform, but has the features of a current account, to accommodate customers that cannot afford the cost of traditional current account. Once you have clocked 18 years, you can walk into any First Bank branches and open this hybrid account as long as you meet the opening requirements.
The FirstSaving Plus comes with minimum opening/operating balance of N50, 000.00 and normal savings interest rate of 3.6 per cent per annum. Operators of this account could make deposit/withdrawal from any FirstBank branch scattered all over the country.
One major feature that set this hybrid account apart from normal saving account is that owners of this account can lodge cheque and dividend warrant into it.
FirstSaving Plus offers the benefits of a saving and current accounts. Holders of this account could issue cheques to third party without having to pay COT, once the withdrawal does not exceed thrice within a month.
So, with this account, you don’t need to get a current account before you can pay in cheques and dividend warrant written in your name. It also allows Intersol withdrawals from any the bank’s wide spread branches.
If the account holder does not make more three withdrawals in a month, he qualifies for interest on his savings.
A person who wants to open FirstSaving Plus account is expected to submit a duly completed application form.
He is to also present a valid means of identification (Drivers License, National ID Card or International Passport) and a valid proof of address of residency, which could any utility bill not older than three months.
Other things required for the opening of this hybrid account is two passport size photographs of the applicant and two references.
The application form for FirstSaving Plus could be downloaded from the bank’s website or obtained from any of its branches. But the completed application form has to be submitted at my of the bank’s branches.
This is a hybrid savings account with zero COT from the stable of the United Bank for Africa (UBA). Like most hybrid account, it has the features of both saving and current accounts, which gives an account holder the privilege of issuing non-clearing cheques created to provide you with benefits derived from both savings and current accounts.
The U-Gold comes with customized non-clearing cheque books, which could be issued to a third party. The drawee has visit the bank to cash the cheque, because he cannot lodge it into his own account.
The main benefit of this the U-Gold account is that it allows third person withdrawal without attracting the payment of COT and unlike some other hybrid accounts, there is no limit to the numbers of withdrawals that could be made.
This hybrid account also attracts a high interest of 3.6 per cent per annum. Dividend warrant could also be paid into this account after the submission of two referees.
Holders of this account enjoy internet banking and the use of debit card.
An open balance of N5,000 is required in the U-Gold account. The account holder is also expected to submit two referees to allow him lodge cheques and dividend warrants into this account.
He has to also present a passport photograph and a valid identity card, which could be International passport, national ID, driver’s license, voter’s card, student ID or employee ID.