We know you might have come across the word Diaspora Banking or Diaspora Account before now. But do you truly understand what it means and who are the set of persons that can Apply for this type of Account.
In this article we’ll try and make you understand what Diaspora Banking means, who are those that can apply for this type of Bank Account. We’ll also evaluate the importance of this type of Bank Account. Lets answer the very first important question, What is Diaspora Account or Banking.
What Is Diaspora Banking Or Diaspora Account
The word Diaspora is Jewish related which refers to Jews who lives outside Isreal. This means that it usually refers to citizens or people from a locality that lives outside their place of birth or origin.
What Is Diaspora Banking: Diaspora Banking is a type of banking where citizens of a country living outside the country can own and manage bank account within their own country while living outside the country.
- Read Also: Family Saving Scheme: Access Bank Savings Account For The Family
- Online Frauds: Who Is To Blame For The Rise In Online Fraud
- Social Media Fraud: Top Social Media With High Internet Fraud
What Are The Benefits Of Diaspora Banking
There are lots of benefits associated with this type of banking. But for the sake of this post we’ll try and highlight a few of these benefits.
- Domestic Account for citizens living outside the country: Yes this type of bank account makes it possible for anyone outside the country to manage funds as if he/she were in the country.
- Reduced level of fraud: Most types people get scam when sending money to relative from oversea/abroad. But with a Diaspora Account a relative can easily send money from oversea as if he were in the country.
- Relatively cheap to maintain: International transfer attracts significant amount of transfer charge. But with a Diaspora Account you have to worry less about international transfer charges.
- Transfers are Relatively Fast: Most international money transfer passes through series of confirmation stages. With a Diaspora Account this is different as you can just send the money as if you are within same country.
- Account Security and Transaction Monitor: Money transferred by using international money transfer agencies are next to untraceable. But with Diaspora Account, you are in charge of your account and your bank can easily track transfers locally.
The list of benefits goes on and its a long one. Now that we have seen some benefits who can apply for this type of account.
General features Of Diaspora Banking
- $100, £100 & Euro 100 opening balance
- Interest rate 0.01% p.a. (above 100,000 GBP, USD, Euro)
- Cash Handling charge of 0.5% on withdrawals(This varies from bank to bank, for example some banks charge 0.25%)
- No minimum daily balance
- Customized cheque book (on request)
- No Monthly Maintenance
- No restriction on number of withdrawals
- Read Also: Understanding The Differences Between Checking and Savings Account
- Checking Account: What It Means, General Features And Benefits
- Features and Benefits Of Savings Bank Account
- Access Bank Smart Savings Account For Smart Savers
Who Can Apply For A Diaspora Banking
The following are the very short list of persons who can apply for a Diaspora Account
- Persons given birth to in a country but who lives outside their country.
- Individuals who works abroad
- Business organizations: To handle international business
- Any person given birth to outside his/her country but wants to have an account in his/her home country.
- If you live within the country but is thinking about working abroad.
- Anyone of legal age who lives in their country can also apply for the Diaspora Account.
Like we said the list not such a long one. But now we have known persons who can apply for this type of account lets get to know the general requirements.
General Requirements To Open A Diaspora Account
- Individual Account Opening Form from your bank of choice
- Completed Specimen Signature card
- Two recent passport photographs(some banks only need one recent passport photograph)
- Valid means of identification e.g. International Passport , Driver’s License or National I.D. Card (Original to be sighted).
- Proof of residential address. Use of Utility Bill, e.g. Electricity bill, NEPA, NITEL Bill, etc.
- References(some banks request for this). You need to provide two references one from your current country of residence the other from your home country.
- AML risk assessment
- FATCA form (if customer is residing in the USA)
- Read Also: All You Should Know About Access Bank Mortgage Loan
- How To Open A UBA Diaspora Account From USA
- All About The UBA Bank Home or Land Acquisition Loan
Please note that requirements above varies from one bank to another. Be sure to provide all the details your bank needs to open your Diaspora Bank Account.
How To Open A Diaspora Account
Just visit the branch of your bank nearest to you and obtain the account opening form. Fill the form and submit including all the requirements above.
All Banks in Nigeria now offer the Diaspora Account service. You can visit your bank and request for details.
Diaspora Banking is gaining popularity with the likes of Payoneer making it possible for people to trade and receive payment across the globe. Remember that getting a Diaspora account is important and its easy. Please share our post on Facebook and Twitter using the share button below.