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The short answer
Most Nigerian domiciliary current accounts pay little or no interest; some savings-type dollar accounts pay a small rate above a minimum balance, such as UBA's Dom Advantage (interest above US$1,000) or Keystone's diaspora account at 0.15% a year. Since 1 January 2026 banks deduct 10% withholding tax on foreign currency interest, and charges on withdrawals can exceed the interest, so check both.
Do domiciliary accounts pay interest?
A domiciliary account is a Nigerian bank account in a foreign currency, usually US dollars, pounds or euros. Its main job is safe-keeping and moving foreign currency, not earning. Current-type domiciliary accounts generally pay nothing. Savings-type accounts and dedicated deposit products may pay a small rate, often only above a set balance. The bank's own product page or rate sheet is the place to check; few publish a live rate online.
What banks' own pages say
- UBA Dom Advantage (current or savings, USD/EUR/GBP): pays interest on balances above US$1,000; minimum opening US$50, €50 or £50. UBA's Freedom Dom, by contrast, is capped at US$2,000 and allows cash at branch only. (UBA domiciliary page, October 2026.)
- Keystone Diaspora Current (USD/GBP/EUR): 0.15% a year; opens with 10 units. (Keystone accounts page, October 2026.)
- FirstBank: its FAQ says domiciliary accounts in GBP, USD and EUR have no limit on the number of withdrawals and free cash withdrawal; interest-bearing dollars sit in FirstDom, a separate product from US$5,000 with tiered rates of 0.50%–2.00% a year. (FirstBank FAQ, undated.)
No published figure here should be read as today's rate. Ask the bank for its current rate and the balance it applies from.
Withholding tax since January 2026
BusinessDay reported on 1 January 2026 that banks would deduct 10% withholding tax on all foreign currency deposit interest from that day, in line with the Nigeria Tax Act 2025. PwC's tax summary confirms that interest on foreign currency domiciliary accounts is no longer exempt. If you live abroad, your country of residence may also tax the interest.
Worked example: when fees beat interest
Example 1. You keep US$3,000 for a year in an account paying 0.15%. Interest is US$4.50; after 10% withholding tax, US$4.05.
Example 2. Access Bank's domiciliary FAQ lists a 0.5% cash handling charge on withdrawals. Withdrawing US$1,000 in cash at that rate costs US$5, more than the whole year's interest in Example 1.
Example 3 (illustrative rate). US$20,000 in a tiered deposit at 1% a year earns US$200, or US$180 after tax. This is where interest becomes worth comparing between banks.
| Balance | Rate (example) | Interest a year | After 10% WHT |
|---|---|---|---|
| US$3,000 | 0.15% | US$4.50 | US$4.05 |
| US$10,000 | 0.50% | US$50 | US$45 |
| US$20,000 | 1.00% | US$200 | US$180 |
| US$50,000 | 2.00% | US$1,000 | US$900 |
Checking your statement
Interest and the tax taken from it should both show on your statement. Look for two lines on the crediting date: the gross interest and a separate withholding tax debit. If you see a single net figure, ask the bank for a breakdown and a withholding tax receipt. You may need that receipt if your country of residence taxes the same interest and gives credit for tax already paid in Nigeria.
Also check the balance the rate applies to. With UBA's Dom Advantage, for instance, interest is described as applying above US$1,000, so a balance that dips below that line for part of the month may earn less than you expect. Ask whether interest is worked out on the daily balance, the minimum monthly balance or the average.
Interest is not the main reason to hold a dollar account
For most Nigerians abroad, a domiciliary account at home is about convenience: receiving dollars from work or family, paying school fees or rent in Nigeria when needed, and avoiding forced conversion. Judged on interest alone, the published rates above are small. Judged on how often you move money, the charges on cash withdrawals and transfers matter more. Choose the account on the costs you will actually pay, then see whether any interest is a bonus.
What to ask your bank
- Does this account pay interest at all, and from what balance?
- Is the rate fixed or changed at the bank's discretion, and how am I told?
- How often is interest credited, and will I get a withholding tax receipt?
- What are the charges on cash withdrawals and outward transfers?
- Is a fixed-term dollar deposit available, and at what rate for my amount? See dollar fixed deposits for the diaspora.
Background reading: withholding tax on interest and the rules on holding dollars.
Where Pryme fits
A Pryme account holds dollars in the currency they arrived in (multicurrency), and you convert with Swap only when you approve the rate and fee shown. Check the app for any charges before you move money.
Questions people ask
Do domiciliary accounts pay interest in Nigeria?
Current-type domiciliary accounts usually pay little or none. Some savings-type dollar accounts pay a small rate above a minimum balance, for example UBA's Dom Advantage above US$1,000.
Is interest on dollar accounts taxed in Nigeria?
Yes. Since 1 January 2026 banks deduct 10% withholding tax on foreign currency deposit interest, and PwC confirms domiciliary interest is no longer exempt.
Which bank pays interest on domiciliary account?
Published examples include UBA Dom Advantage (above US$1,000), Keystone Diaspora Current (0.15% a year) and FirstBank's FirstDom (tiered 0.50%–2.00%). Ask for current rates.
Is it worth keeping dollars in a Nigerian bank for interest?
Only on larger balances. On small balances, withdrawal or transfer charges can exceed a year's interest.
Sources
- UBA: Domiciliary account · accessed Oct 2026
- Keystone Bank: Personal accounts · accessed Oct 2026
- FirstBank: FAQs · accessed Oct 2026
- BusinessDay: Banks will deduct 10% withholding tax on foreign currency interest from today (1 Jan 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual (last reviewed 29 May 2026) · accessed Oct 2026
- Access Bank: Domiciliary account FAQ · 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.