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The short answer
Published rates on Nigerian dollar savings are low: FirstBank's FirstDom pays tiered rates of 0.50% to 2.00% a year from $5,000, and Union Bank's domiciliary account pays up to 1%, with up to 4% on its UnionAce USD product. US high-yield savings accounts publish their own APY, which moves with US interest rates. Before chasing a difference, weigh deposit insurance (FDIC in dollars; NDIC describes its cover in naira), access and tax.
US-based Nigerians with dollars in a Nigerian domiciliary account often ask whether to leave them there or bring them to a US savings account. The headline interest rate is only one part of the answer. Where the deposit is insured, in what currency, how quickly you can get it out and how it is taxed matter as much.
What Nigerian banks publish
| Bank and product | Published rate | Conditions on the page |
|---|---|---|
| FirstBank FirstDom | Tiered, 0.50% to 2.00% a year | Minimum $5,000 (€5,000, £3,000); separate product with a new account number |
| Union Bank Domiciliary Account | Up to 1% a year | Minimum $50 or equivalent |
| Union Bank UnionAce USD | Up to 4% a year | Minimum $100 |
These are "up to" or tiered figures from the banks' pages as read in October 2026; the rate you get depends on balance and terms. Ask for the rate in writing before you move money. Ordinary dom current accounts often pay nothing.
What US savings accounts publish
US banks quote savings rates as an annual percentage yield (APY) on their own pages, and online high-yield accounts usually pay well above large banks' standard savings accounts. Rates follow US interest-rate conditions and can change at any time, so compare the APY each bank shows on the day rather than a figure from an article.
The differences that matter more than the rate
| Nigerian dom account | US savings account | |
|---|---|---|
| Deposit insurance | NDIC: ₦5,000,000 per depositor at commercial banks, ₦2,000,000 at microfinance banks; the NDIC FAQ describes cover "naira-for-naira" and does not say how dollar balances are valued | FDIC: at least $250,000 per depositor, per ownership category, at an FDIC-insured bank |
| Access from the US | Wire out, subject to bank processes; up to USD 10,000 per day without Form A from self-funded dom accounts under the 2026 FX Manual | Transfer within the US banking system |
| Tax in Nigeria | PwC's Nigeria summary says interest on foreign-currency domiciliary accounts is no longer exempt | None |
| Tax in the US | Interest is reportable worldwide income; account counts for FBAR | Interest reportable |
The insurance gap is the biggest. ₦5,000,000 of NDIC cover is about $3,571 at an example rate of ₦1,400 per dollar, while FDIC cover is $250,000. A large dollar balance in a Nigerian bank is mostly uninsured. See whether a Nigerian dom account is covered by the FDIC (it is not) and what NDIC covers for diaspora accounts.
When keeping dollars in Nigeria makes sense
There are good reasons to leave some dollars in a Nigerian domiciliary account even if the rate is lower. If you pay dollar costs in Nigeria, such as a dollar-denominated rent or school fee, or you expect to fund a trip home, a balance there avoids wiring money back and forth. If you are building towards a property purchase in Nigeria, dollars already in the country are easier to deploy. And if a relative manages payments for you, a dollar balance there may be more practical than one in the US.
The case weakens as the balance grows. Above the NDIC limit, the extra interest is earned on money with little deposit insurance, and getting it out is subject to bank processes and daily limits. Many people keep a working balance in Nigeria and the rest in the US.
Worked example
Illustrative figures only. $20,000 for one year. In a dom product at 2.00%, interest is $400, before any Nigerian tax on it. In a US account at an example APY of 4.00%, interest is about $800. At an example US APY of 1.50%, it is $300, and the Nigerian product earns more. Either way, the Nigerian balance carries far less deposit insurance, and both amounts are reportable on a US return.
US reporting
- Schedule B is required if you have taxable interest over $1,500, or a foreign account; it asks about foreign accounts even if you do not need to file an FBAR (IRS instructions, reviewed April 2026).
- FBAR applies if your foreign accounts together exceed $10,000 at any time in the year (IRS).
- This is information, not advice.
What to check first
- The written rate, minimum balance and withdrawal terms for any Nigerian dollar product.
- How much of your balance sits above the NDIC limit at that bank.
- The APY on the US account you would use, on the day.
- What you will spend in Nigeria in dollars, which may be a reason to keep some there.
For the Nigeria-side view, see saving in dollars in Nigeria.
Where Pryme fits
A Pryme Personal Account holds USD and NGN with separate account details and can be opened from the US. Its naira Savings Boxes show their rates in the app; naira deposits are held by a licensed Nigerian microfinance bank, regulated by the CBN and insured by the NDIC up to the applicable limit.
Questions people ask
Do Nigerian domiciliary accounts pay interest?
Some products do. FirstBank's FirstDom pays tiered rates of 0.50% to 2.00% from $5,000, and Union Bank lists up to 1% on its dom account and up to 4% on UnionAce USD. Ordinary dom current accounts often pay none.
Is my dollar account in Nigeria insured?
The NDIC insures up to ₦5,000,000 per depositor at commercial banks and describes cover naira-for-naira. It does not say how dollar balances are valued; ask the NDIC or your bank.
Is interest on a Nigerian dom account taxed?
PwC's Nigeria tax summary says interest on foreign-currency domiciliary accounts is no longer exempt. In the US it is reportable worldwide income.
Should I move my dollars from Nigeria to a US savings account?
Compare the written rates, then weigh FDIC cover of $250,000 against NDIC cover of ₦5,000,000, and how you will access the money.
Sources
- FirstBank Nigeria: FAQs · accessed Oct 2026
- Union Bank of Nigeria: Domiciliary account · accessed Oct 2026
- FDIC: Understanding deposit insurance (updated 1 Apr 2024) · accessed Oct 2026
- NDIC: Frequently asked questions · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual (reviewed 29 May 2026) · accessed Oct 2026
- IRS: Instructions for Schedule B (Form 1040) (reviewed 30 Apr 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.