How many Nigerians have bank savings? Better, are Nigerians worried over the safety of their bank savings? I definitely am.

For small depositors, the thought of losing the meagre source of sustenance is sufficient cause to refrain from any long-term bank deposits.

How many Nigerians have heard of an insurance company that protects bank deposits? Better than that, are Nigerians aware of the operations of the Nigeria Deposit Insurance Corporation (NDIC)? The NDIC function out of their headquarters in the Federal Capital Territory (FCT) Abuja plus nine branches in the cities of Sokoto, Ilorin, Lagos, Enugu, Benin, Port Harcourt, Yola, Kano, and Bauchi.

The first step towards securing one’s deposits is to ensure that the financial institution of choice is insured by the NDIC. Proof of membership of the body is the presence of the “Insured By The NDIC” sticker at the bank.

All licensed financial corporations are required to be members of the Nigeria Deposit Insurance Corporation. Such institutions include interest, non-interest, primary mortgage, and microfinance banks.

The second step is to realise, however, the amount of deposit insured in each category of banks differs.

For Deposit Money Banks (DMB) and Non-Interest Banks (Islamic), each depositor will receive a maximum of 500,000 naira, for each company.

The figure is up to 200,000 naira for other types of banking institutions.

The third step is to understand the type of deposits covered.

The NDIC insure only certain deposits, which include principal and interest.

1. Savings account

2. Current account

3. Time or term deposits

4. Foreign currency account deposits

The fourth step is to remember that once one’s bank ceases to operate, one ought to contact the NDIC and submit identification document and forms. After ownership of the account has been verified, the NDIC will compensate the depositor within 90 days from the date the bank lost its licence.

The earlier one files the claim the better. Bear in mind, only the insured figure is paid within the stipulated period. Any balance between the amount of deposit and insured sum will be paid as liquidation dividend once the assets of the bank have been recovered.

Descriptive Example: A client Maymunah has deposits [in naira] in savings (80,000), current (450,000), fixed deposit (100,000) and foreign currency account (120,000) in Bank Amana, a non-interest bank.

Deposit total = 750,000 naira

On the collapse of Bank Amana, she will receive 500,000 naira; the balance (250,000 naira) she should expect as dividend.

The same holds for an interest bank. For primary mortgage and microfinance banks, substitute 200,000 for 500,000. Contact details. NDIC help line: 0800NDICHELP = 0800-6342-4357 Email: info@ndic.org.ng Website: www.ndic.org.ng NOTE Uninsured Deposits: (1) Bills, bonds and notes of the federal government (2) Mutual funds, stocks, annuities, bonds, debentures and commercial papers (3) Loan collateral (4) Inter-bank deposits (5) Insider deposit transactions of bank staff and directors.

•Umm Sulaim is the Publisher of Umm Sulaim’s Thoughts (https://iamummsulaim.wordpress.com).

Copyright © 2019 Umm Sulaim. All rights reserved.

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