Best online banks in Nigeria
As technology changes, banks have been coming up with new and better ways to do business. For example, in most countries, digital or “challenger” banks are the new thing. So, now they are taking over markets in the United States, United Kingdom, Canada, and now Nigeria by giving customers better terms.
Unlike the traditional brick-and-mortar banks in Nigeria, these neobanks offer the same banking services for less, or for free, with better customer service and a focus on innovative products and services. Here are the best online banks in Nigeria, you can join if you live in Nigeria.
- Free Debit Card
- 25 free transfers every month
- Kuda Overdrafts
- 15% annual interest on savings
- Budgeting Tools
- Connect account to Payoneer
Kuda bank is an online bank, with its main office in Lagos, Nigeria. For example, this Central Bank-licensed microfinance bank was started by Babs Ogundeyi and Musty Mustapha. Its goal is to help its customers get the best banking services without having to pay too much.
The Kuda Card, which is a free debit card, is one of the most important things about Kuda. Therefore, once you sign up, the bank will send you the card for free, and you can use it at more than 3,000 ATMs for free.
With a Kuda Bank account, you can send up to 25 free transfers to other banks every month. As a result, every year, you can save up to 15,000 naira.
Therefore, you can also send money from the bank without an account number. With a payment link, you can send money to anyone with a smartphone more quickly.
Your money is safe in the bank because the Nigerian Deposit Insurance Corporation covers all deposits (NDIC). Kuda also has a Fixed Savings plan that lets you lock away lump sums of money and earn up to 15% interest per year.
Most importantly, this bank’s budgeting tool helps customers make a budget and keep track of how they spend and save their money. In addition, even after you’ve set a budget, the Spend+Save feature will help you save money. With this feature, you can save a small amount of money every time you spend money from your account.
This bank is great if you need a loan for a short time. As long as you use your account often, Kuda will let you borrow money if you go over your limit.
On Google Play, the Kuda app has a rating of 4.3 out of 5, and on the App Store, it has a rating of 4.7. Most importantly, the app lets you use all of the bank’s services.
- Current account
- Savings account
- Instant Loans
- Personalized money tracker
- Scheduled Transfers
- Mutual Funds at 30.5% per annum
Mint is an online bank with headquarters in Nigeria. Finex Microfinance Bank Ltd, which has a license from the Central Bank of Nigeria, is in charge of the Mint account. Therefore, this bank has a wide range of products, including checking and savings accounts, low-interest loans, and a personal money tracker.
So, once you open a checking account, you won’t have to pay any fees to keep it open, or to use it. You can choose the goal-based savings plan for your savings account, which can earn you up to 36.5% interest. Above all, it is very important that your deposits are safe. All deposits are backed by the NDIC.
You can also save for emergencies or save your spare cash. With the round-up option, Mint will accumulate the cash from your transactions to the nearest hundred or thousand, move it to your savings, and earn you up to 15% interest on it.
The personalized money tracker tells you how much cash you can spend, which helps you manage your money better. You can plan money transfers with the app. You only need to set up who will receive the money, how often, and how much.
You can also get instant loans through the app before you get paid. Hovewer, to be eligible, you need to have used the Mint account as your paycheck account for about two months.
You can also spread out your money by making investments. You can earn up to 30.5% per year on an investment of N5,000 in Mint Mutual Funds.
The MyMintApp app for Mint can be used on both iOS and Android devices. It has a customer rating of 4.6/5 on the App Store and 4.3/5 on Google Play.
- Current account
- 10% interest per year on a savings account
- Instant Loans
- Free virtual dollar card
- Corporate banking
ALAT is Nigeria’s first digital bank that offers all services. Wema Bank opened this bank in 2017. It is owned and run by Wema Bank. Wema was the first bank in Nigeria to offer mobile banking in 2011. A few years later, when it opened the first digital bank, it shook up the industry.
So, it only takes a few minutes to sign up for an account. The bank doesn’t need any other paperwork from you besides your phone number, BVN, full name, and address.
Their savings account and “Savings Goal” feature give a high interest rate, about three times more than a regular bank. You can sign up for a savings plan that will save money for you automatically, and earn you 10% interest per year.
ALAT also gives each customer who opens an account a free virtual dollar card. With this feature, you can turn your naira into dollars at any time to make a payment or buy something.
- Sparkle Stash
- Virtual and Physical Sparkle cards
- Spending breakdown
- Sparkle inventory for businesses
Uzoma Dozie, who used to be the CEO of the now-defunct Diamond Bank, started Sparkle in 2019. The bank is based in Nigeria, and it offers both personal and business accounts to its clients. Since it opened, as a result, the bank has handled more than $ 16 million in transactions, has more than $400 million in deposits, and has more than 20,000 customers.
A smartphone makes it easy to open a Sparkle account, which only takes 5 minutes. The accounts also have a feature that breaks down your spending so you can see where your money is going.
Sparkle Stash lets you make your own plan to help you save money. You can save money by taking a certain percentage off all your debit card purchases or by saving with a group of other Sparklers.
On the other hand, another option to save money lets you earn interest of 3.75 percent per year, if you have at least 100,000 yen in your Sparkle stash.
Customers can send and receive payments with SparklePay by using a link that is made just for them. Once you make the unique link, you can add a custom message and the amount to send. Your recipient will use an app or website to open the link and have access to the money.
Sparkle has both virtual and physical cards that can be used to pay and do business. They can both be used safely in the app, in stores, and online. However, if you lose your card, you can turn it off through the app.
This bank has features that make it easier to run a business. Companies can use the app or website to access tools for inventory, billing, taxes, and payroll.
If you need help from the Sparkle team, they have an AI chatbot, named Indy, that can answer all your questions about life and money. The app can be used on both iOS and Android.
- Transactions with no fees
- Target Savings
- Withdrawals without a card
- Budgeting Tools
- Joint accounts
Vbank is a digital bank in Lagos, Nigeria. It is also known as V by VFD. VFD Microfinance bank, which is part of the VFD Group, owns it. People and businesses can get a wide range of services from the bank, such as fixed savings, instant loans, and cash withdrawals, without a card.
For instance, Vbank doesn’t charge for transactions or account maintenance, and it gives customers interest on their savings every month.
When you sign up for an account, you have to give your phone number, email address, full name, BVN, password, and a photo to prove your identity. You can easily sign up by downloading the app from Google Play or the App Store.
With a feature like Veelage, users can earn between N30K and N2m per month by giving their network a referral code. As a result, the more accounts that use this code, the more money you make.
On a fixed account, Vbank has one of the best rates in Nigeria. On these deposits, they offer up to 14% interest to their customers.
You could also choose the V Target Savings option. With this savings account, the bank will match 20% of your first deposit toward your goal amount and give you 8% compounded interest per year.
The bank has just added a new feature called a “Joint account” for couples or other customers who want to save money together. With a V Joint Account, you can have more than one card or more than one operator for the same account.
- Current Account
- Savings Account
- Business banking
- Virtual cards
- Money Request
Rubies is a banking platform in Nigeria that is completely online. It caters to businesses, millennials, young professionals, SMEs, Fintech companies, and financial institutions by offering free banking services.
The bank has a mobile app for iOS and Android that works well, and in addition, lets customers use all of the bank’s services.
You can use the “reqest money” feature to get cash from someone. If they agree, your account will be credited after you send the request. You can also refuse, accept, or block requests that are sent to your account.
Goal-setting is impossible without a savings account. It gives you flexible plans that let you keep track of your goals.
The Rubies debit Naira card is free to use at stores and ATMs and to make purchases. The app lets you order one. You can also ask for a virtual dollar card that you can use to make purchases and payments online.
- Current account
- Savings account
- Virtual dollar cards
- Zero-interest loans
- Cardless ATM withdrawals
In 2019, Eyowo digital bank opened in Lagos, Nigeria. Firstly, this bank has special features that let customers send, receive, save, spend, and borrow money with just a phone number. It’s easy to open an account; all you need is a phone number.
Secondly, the bank also gives out loans with no interest, which is very rare. Customers can also use virtual cards when they shop online. Small and Medium-Sized Businesses can use these cards (MSMEs)
You can use the website, the mobile app, or the Unstructured Supplemental Service Data to get to the banking services of Eyowo.
- Savings account
- Current account
- Cardless withdrawals
Sterling bank owns and runs One Bank, which is a bank that only works online. Once you sign up, you can use the app immediately, to make payments, invest, and borrow money.
There are different kinds of accounts at One Bank, such as Classic and Domiciliary checking and savings accounts, TrybeOne accounts for college students, and Kia Kia accounts for people who don’t have any paperwork or ID cards. The main purpose of the I Can Save account is to save money. Parents can, ultimately, put money away for their children.
The bank also lends up to N5 million to businesses without any paperwork or collateral.
What to think about when choosing the best online Bank in Nigeria?
Online banks have a lot to offer their customers. So, here are a few of the most important things you should look for in a Nigerian online Bank.
Like other banks, these digital banks offer a variety of financial services and products. Whether you need a savings account, a way to keep track of your spending, or loan services, you should choose the bank that has the services you need.
Most of Nigeria’s digital banks have both physical and digital cards. Customers can use these virtual cards, instead of dollars, when they shop online and pay in dollars. When a bank has these tools, it’s easy to make transactions and payments all over the world.
Also, the bank should have a mobile app that works well and can be found on either the App Store or Google Play. Since banks don’t have physical locations, the app makes it easier to keep track of transactions and make changes while on the go.
Savings Account Interest Rates
The interest rates on savings at Nigerian digital banks are pretty high. Depending on how much you want to save, you should choose the best online bank in Nigeria, with a good rate.
Conclusion – the best online banks in Nigeria
To conclude, Nigeria is getting more and more digital banks. Firstly, they offer better services than traditional banks because they have better terms, no fees, and online banking. If you want to switch to a digital bank, we’ve talked about some of the ways you could do it.
Secondly, before you join one of these best online banks in Nigeria, make sure that the services they offer meet your financial needs and help you manage your money in a better way.
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