central banks in Africa

What Is a Tier-1 Bank Account?

Last updated on March 19th, 2024 at 09:42 am

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A Tier-1 bank account or level-1 bank account is a type of bank account that can be opened with minimal or no form of documentation.

Tier-1 bank accounts can be opened with a passport photograph and phone number. This category of bank account is popular among unbanked nations such as Nigeria to bring them under the banking system and create a banking and saving culture among them.

In countries such as Nigeria, tier-1 bank accounts have a limit of N50,000 deposits and an operating balance of N200,000. Most of them are not linked to the Bank Verification Number (BVN).

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To increase the limit or transact more on a level-1 bank account, the holder must pass through Know Your Customer (KYC), submitting more means of identification such National Identification Number (NIN) in case of Nigeria

Author

  • Opeyemi Quadri

    Ope is a finance writer and researcher with 10+ years of experience in content creation. His interests cut across decentralized finance, investment, foreign exchange, government policies and politics.

Also Read:  Unbanked: Why Adults Intentionally Exempt Themselves From the Banking System

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