current account
A current account is your everyday bank account for spending and receiving money, and it pays you almost nothing to hold it.
In plain English
A current account is designed for movement, not for storage. Money arrives, money leaves, and the bank charges you for the convenience.
It gives you what a savings account will not. Unlimited transactions, a card, cheques if you still use them, and no restriction on how often you withdraw. For a business this is essential, because money must move constantly.
What it does not give you is interest. Most current accounts pay nothing at all, and they charge maintenance fees on top, which means money left sitting there is being reduced from two directions at once. The fees take a little and inflation takes rather more.
This is why the single most valuable banking habit is deciding, deliberately, how much should live here. Enough for this month's spending and a small buffer. Everything else belongs somewhere it can at least attempt to keep up.
Most Nigerians keep far too much in their current account. They never decided to. They simply never decided anything at all. And that quiet indecision, over years, costs more than most people's holidays.
You keep ₦1.5 million in your current account because it is convenient. It earns nothing, and account fees take a little each month. Meanwhile ₦1.2 million of that could sit in a money market fund earning around ₦216,000 a year and still be reachable in days.
Questions people ask
What is the difference between a current and savings account?
A current account is for frequent transactions and pays little or nothing. A savings account restricts withdrawals and pays a small amount of interest. Neither is where wealth should live.
Why am I being charged maintenance fees?
Most Nigerian banks charge an account maintenance fee on current accounts. Ask for the full schedule of charges, because most customers have never seen it.
How much should I keep in it?
About one month of spending plus a small buffer. Everything beyond that is money you have quietly decided to let inflation reduce.
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