The recent development in the Nigerian Banking Sector in
collaboration with the Apex Bank demands that the sum of N65 charge be placed
on remote-on-us ATM withdrawals. Accordingly, the terms of this policy
implementation stipulate that Nigerians and visitors who are resident in
Nigeria will henceforth be charged Sixty
Five Naira from the 1st of September when the card holder (ATM
user) performs transaction at ATM outlets other than that of his bank for the
fourth time in a particular month.
These are the things
you need to understand
How the Charges Work
If you use ATM outlets of your bank (even up to 100 times in
a month), you will not pay anything). i.e. All ATM withdrawals and transactions
on the ATM dispensing unit of issuing banks shall be free to the card holder.
If you use another bank’s ATM for 3 times a month, you will
not pay any charge (first 3 transactions are free).
If you use other bank’s ATM for more than 3 times, hey! N65
will be deducted from your account at every transaction.
Effects of the N65
Charges
I think this policy is typically one-sided which favours
only the banks at the expense of their customers.
The Policy will increase long queues at different ATM
dispensing outlets.
However, if you find yourself in a situation where your
bank’s ATM outlet is not around you, paying the purported N65 in by using the
next available bank’s ATM outlet is not a big deal.
#1. Avoid patronizing other bank’s ATM
As a prudent move, you don’t have any choice than to dump
the use of other bank’s ATM outlets if you must avoid paying the newly
introduced N65 charges.
Make it a habit to patronize
your bank’s ATM: You will not be charged any fee if you use your card on
your Bank’s ATM outlets. For instance, if you are banking with Zenith Bank, you
will not pay the said N65 if you consecutively use Zenith Bank’s ATM outlets
for as many transactions as you wish to in a month. This also applies to other
banks.
Although most bank customers who mainly comprise the general
middle and low income earners in the country have expressed displeasure over
this latest trend, the Central Bank of Nigeria had gone ahead to enforce the
policy explaining that it would engineer competition among banks. I don’t know
how that concerns us.
#2. Adopt the “Rat” strategy and don’t get
caught
This is very simple; if you are banking with GTB, you have
to try and stick to withdrawing from GTB’s ATM dispensing unit while you
reserve the other remaining 3 chances on remote-on-us-ATMs (other banks). In
other words, stick to your bank ATM come rain and shine, and they will not eat
your N65. What I mean is that you use other bank’s ATM dispensing unit
sparingly. Remember, you have a maximum of three (3) free withdrawals in a
month reserved for other bank’s ATMs, all you need to do is – restrict your
patronage of other bank’s ATMs while you reserve the opportunity to when it’s
absolutely necessary (as a last resort).
#3. Adopt Internet based or Mobile Money
Banking
This is a great way to avoid using ATMs and falling a victim
to the purported N65 charge. You can simply get mobile money or any other
banking app installed on your smart phone and you are good to go. With the app,
you always have access to your money which makes it possible for you to perform
your basic banking transaction such as – paying bills, money wire, bank
transfer etc. Hey! before you decide to go online, note that you may also need
to pay a service on some of the services rendered by your bank.
#4. Pay direct with your card
Your ATM card has the inbuilt functionality of performing
certain transactions right at the Point of Sale (POS). Fortunately, many shops
and retail outlets in the country are now equipped with POS machines. So
instead of getting cash from ATMs, just pay on the POS with your cards. Paying
on POS cost nothing at all while some banks such as Zenith bank even give a
discount when you use POS. This way, you can definitely avoid the new ATM
charges.
#5. Make Appropriate Plans for your cash
flow
I think it’s time to effectively plan your cash flow. You
don’t need to wait until you’re broke before you withdraw money from the ATM. plan
your expenses 2 to 3 days ahead (in advance) so that you may not be forced to
use another bank’s ATM. if you are withdrawing cash, endeavour to take out more
than what you require for immediate use. plan your expenses in the next 8-10
day and make withdrawals accordingly.
#6. Patronize on-the-counter withdrawals
If you want to avoid the new N65 charges, you may need to
withdraw your money from the counter. Simply visit your bank with your
withdrawal booklet, fill in the amount you need and get paid by the cashier.
#7. Make “Saving” a habit
Take more cash but always remember to remain some for
emergencies. A fixed fee of N65 per transaction might look so insignificant,
but you may be shocked to realize that spend drifts may end up paying so much
within a month. To avoid this, you may need to withdraw more cash at a time and
remain some for exigencies. You may need to purchase a domestic cash saving box
to enable you save at home. This way, you can stay away from the ATM regularly.
So if you find yourself using ATM outlets regularly, endeavour to make large
withdrawals at once so that you don’t make numerous trips at random.
#8. Open and Fund more than 3 accounts
Yes! They thin k we are idiot? Of course we are smarter than
them. To avoid payment of the N65 charge, open and fund up to 6 accounts in six
different popular banks in Nigeria. There is no offence in having multiple
accounts if you can fund them (even if you want to run 50 accounts). Go ahead
and fund these accounts. You’ll now have like 5 ATM cards which automatically make
you a bonafide ATM user for several banks. From this way, you’ll never pay the
N65.
#9. Ask Questions
Do you know that even though the N65 fee policy is in vogue,
no ATM outlets will inform the user that he will be charged? You don’t need to
wait until you’re being told – ask lots of questions to get clarification.
That’s why the customer relation officers are there at the bank.
#10. Spread the News
The problem our people have is lack of information. Majority
of Nigerian ATM user loses money they are a not even aware of. So, spread the
news and teach other people on how to stay save during transactions. One of
the way to share this information is to use the sharing buttons below.
Summary
I am not personally against ATM fees. Do you know why? Am a
beneficiary of the convenience provided by ATM outlets. This does not mean that
you should not try and reduce certain expenses. The strategies listed above
have been of great help to me personally. I can say that am not paying the N65
charge since it was introduced. Just give it a try and you see how much you
would’ve saved in one year.
If this article has been of help to you, please comment and
share! Thank you
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