Kuda Bank will now charge customers N50 for deposits of N10,000 and above

Kuda Microfinance Bank will now begin charging N50 to all deposits of N10,000 or more made into customers’ Kuda account, the bank said.

This was disclosed in a mail sent by the bank to its customers where it described the charge as in line with the Federal Government’s stamp duty act. The charge will be applied to deposits on electronic transfers, money added to accounts with a debit card as well as cash deposits made into account at any of its partner banks.

“In line with the federal government’s duty act. We‘re required by law to apply a N50 charge to all depositors of N10,000 or more made into your Kuda account. This charge will apply to the following kinds of deposits from Friday, July 15, 2022; electronic transfer, money added to your account with a debit card and cash deposits made into your account at any of our partner banks,” Kuda said.

It added that no part of the N50 charges were going to the bank, instead everything would be remitted to the federal government’s coffers.

“We don’t gain anything from the charge. All financial institutions have been directed by the federal government to apply the charge, and we hand over the entire charge to the government.

“We will continue to do our best to give you free financial services that you can rely on, including covering the cost of your first 25 transfers to other banks every month. Please note that the charge will apply from Friday, July 15, 2022,” it added.

Last year, Kuda Bank raised $55 million in a Series B round at a valuation of $500 million. Only a few months earlier, it had raised $25 million in a Series A round.

In December, the bank said it had passed the two-million customer mark, only six months after it acquired its one-millionth customer.

Bradley Want, Kuda Bank’s Head of Growth and Analytics said regarding the development: “Nigerians seem to be more open to skipping the queues and the hassles that come with being at a physical bank. Everyone knows that it can be quite uncomfortable. We’re taking advantage of this positive change in perception by being where people are all the time and offering them value they can’t ignore.”