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The short answer
NDIC cover is per depositor per bank: all your personal accounts at one bank, including every branch, are added together and insured up to one limit (₦5 million at a commercial bank, ₦2 million at a microfinance bank). A joint account is insured separately from each owner's individual accounts, provided each co-owner signed a valid mandate card and has withdrawal rights. Accounts at different banks are each insured separately.
People often open a savings account, a current account and a fixed deposit at the same bank and assume each is insured to the full limit. The NDIC FAQ says otherwise. Knowing how it adds up your balances tells you how much is really protected.
The basic rule: one depositor, one bank, one limit
The NDIC FAQ states that the main office and all branches of a bank are considered to be one institution. Your balances across all accounts held in the same right and capacity at that bank are combined, and the total is insured up to the maximum. Each separate bank is insured separately up to the maximum.
The current limits on the NDIC FAQ are:
- Deposit money banks, including non-interest banks: ₦5,000,000 per depositor.
- Primary mortgage banks: ₦5,000,000 per depositor.
- Microfinance banks: ₦2,000,000 per depositor in the same right and capacity.
Cover is naira for naira and includes interest accrued up to the day the bank closes.
Joint accounts
The FAQ treats a joint account as a separate depositor from each owner on their own, if two conditions hold: each co-owner has signed a valid mandate card, and each has withdrawal rights. Then the joint account is insured up to the maximum, and each person's individually owned accounts are insured separately up to the maximum as well.
Two practical points follow. First, the mandate matters: if your spouse was never added properly to the account's signature mandate, the account may be treated as yours alone and added to your personal balance. Second, the joint account has one limit of its own; it is not one limit per owner.
Fiduciary and business accounts
The NDIC FAQ says accounts held in a fiduciary capacity, such as by an executor, guardian or trustee for someone else, are generally insured separately from the holder's own accounts, subject to the rules set out there. Companies, partnerships, associations and other bodies are depositors in their own right, and the NDIC claims page lists separate documents for each type. A sole proprietor's business name account is a case to check with the NDIC, as the claims page lists sole proprietors as their own category.
Worked examples
Several accounts at one commercial bank
Example only. Kemi has a savings account with ₦2,500,000, a current account with ₦1,800,000 and a fixed deposit of ₦3,000,000, all in her own name at the same commercial bank. Her combined balance is ₦7,300,000 (₦2,500,000 + ₦1,800,000 + ₦3,000,000). The insured limit is ₦5,000,000, so ₦5,000,000 is insured and ₦2,300,000 is uninsured.
Adding a joint account
Example only. Kemi and her husband Femi also hold a joint account at the same bank with ₦4,000,000. Both signed the mandate card and both can withdraw. The joint account is insured separately, so all ₦4,000,000 is covered. Kemi's personal ₦7,300,000 is still capped at ₦5,000,000. In total, ₦9,000,000 of the family's ₦11,300,000 at that bank is insured.
Spreading across banks
Example only. If Kemi had instead put her ₦3,000,000 fixed deposit at a second commercial bank, her first bank would hold ₦4,300,000 (fully insured) and the second ₦3,000,000 (fully insured). All ₦7,300,000 would be within the limits.
| Set-up | Total held | Insured | Uninsured |
|---|---|---|---|
| Three personal accounts, one bank | ₦7,300,000 | ₦5,000,000 | ₦2,300,000 |
| Same, plus mandated joint account | ₦11,300,000 | ₦9,000,000 | ₦2,300,000 |
| Personal accounts split across two banks | ₦7,300,000 | ₦7,300,000 | ₦0 |
Watch out for bank mergers
When two banks merge, they become one institution under the NDIC's rule that a bank and all its branches count as one. Accounts you held at each side, which were insured separately before, can end up under a single limit after the merger completes. If your bank announces a merger, add your balances at both together and check the total against the limit.
What to check first
- List every account in your name at each bank, including fixed deposits and domiciliary accounts.
- Check that joint accounts have every owner on the signature mandate with withdrawal rights.
- Note whether each bank is a commercial bank or a microfinance bank, since the limits differ.
- Keep anything above the limit in mind as uninsured; it would be paid only as liquidation dividends.
For the limits themselves, see NDIC deposit insurance limits explained. This is general information, not financial advice.
Domiciliary accounts
The NDIC FAQ describes cover naira for naira and does not set out on that page how foreign-currency balances are converted for the limit. If you hold a large domiciliary balance at a bank, ask the NDIC help desk (0800-6342-4357) how it would be counted with your naira accounts.
Where Pryme fits
A Pryme account can hold NGN, USD, GBP and EUR in one place. Naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit, so the MFB rule above applies to the naira side. See multicurrency accounts and Savings Boxes.
Questions people ask
Is each bank account insured separately by NDIC?
No. All your accounts at one bank, including all branches, are added together and insured up to one limit. Accounts at different banks are insured separately.
Does NDIC insure joint accounts?
Yes. The NDIC FAQ says a joint account is insured separately from each owner's individual accounts if each co-owner signed a valid mandate card and has withdrawal rights.
If I have ₦10 million in two accounts at one bank, how much is insured?
At a commercial bank, ₦5,000,000 in total, because both accounts are combined under one limit. The rest is uninsured.
Is a fixed deposit covered by NDIC?
A fixed deposit at an insured bank is a deposit and counts towards your total at that bank, up to the limit.
Sources
- NDIC: Frequently asked questions (insured limits, joint accounts, pass-through cover, liquidation) · accessed Oct 2026
- NDIC: Your claims (Depositors Verification Form and claim steps) · accessed Oct 2026
- Voice of Nigeria: NDIC pegs depositors' payout at ₦2m, ₦5m (1 Mar 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.