Open Virtual Bank Account in Nigeria With Kuda

One of the needs that are driving changes in the banking sector is convenience. The ability to conduct banking transactions from the comfort of your home or office. Well, virtual banking seeks to do exactly that. Although virtual banking in Nigeria is yet to be widely embraced, Kuda bank offers banking services via an app and USSD code for Kuda Bank. This article will provide you with all the relevant details on how to open Kuda Bank account online.

We’re the bank of the free. Most banks exist to tie you down with charges. We’re not most banks. Kuda is designed for your smartphone, free of ridiculous charges and great at helping you budget, spend smartly and save more.

Who Owns Kuda Bank?

Kuda Bank was co-founded by Babs Ogundeyi (CEO) and Musty Mustapha (CTO) in 2018. It is registered as Kuda Microfinance Bank with offices in Lagos, Nigeria and London, UK.

 

What is Kuda Bank and How is Kuda Bank Different From Other Banks?

Kuda a virtual bank. This means that it is totally online. It does not have any physical branch like the ordinary financial institutions in Nigeria. All you need to operate your Kuda bank account is a smart phone with internet connection. However, like other banks, it avails a debit card (Visa) to its clients. The card is usually delivered to your doorstep in any location within the country. Apart from owning a physical, debit card, you’ll be able to create a Kuda virtual card on the app to pay for goods and services online.

Beneficial Features of Kuda Bank

Kuda bank is an ideal bank for individuals in Nigeria who are seeking for a financial institution with the following features:

  • Convenience in accessing all the crucial banking services. All you need is a smart phone with Internet connection and you can visit your bank from the comfort of your home or office.
  • No charges when you withdraw funds at any of their partner bank’s ATMs.
  • No account maintenance fees.
  • Free money transfers to other banks.
  • No charges for depositing funds.
  • Up to 15% annual interest.
  • No minimum account balance.

If you open Kuda account with your name and phone number, you’ll get a basic account limited to a maximum balance of 300,000 naira, a maximum deposit of 50,000 naira at a time and a maximum transfer of 20,000 naira at a time. If you add your Bank Verification Number (BVN) and a government-issued ID (like your driver’s license, national ID card or international passport) to your Kuda profile, your account will be upgraded to a full account without limits.

 

How Does Kuda Bank Work?

How to Open Kuda Account

Kuda registration process is simple. As a virtual bank, Kuda sign up is done online. You must be a Nigerian who has turned 18 and above. This is how to create Kuda bank account:

 
  • To start Kuda bank account opening, you need to download Kuda bank app either on App Store or Google Play
  • You will be asked to fill in a few personal details including your name, email address, and phone number. At the end of this step, take a clear image of your face. The photo is required solely for identity verification.
  • Order your Kuda ATM card, which will be delivered to any location within Nigeria within two weeks. With this Kuda Bank card, you can safely make online payments, withdraw cash from various ATMs, and purchase goods both locally and internationally. You can also apply on Kuda app for Kuda bank virtual card.
  • After finishing Kuda bank registration, you will be able to save money, make money transfers, buy airtime and pay various bills with ease.

 

Does Kuda Bank Require BVN?

Can I open a Kuda account without BVN (Bank Verification Number)? Yes, it is possible to open a Kuda bank Nigeria without BVN, but the account will have certain limitations. Kuda bank has three types of accounts.

  • Tier 0 (T0). An account that does not have a confirmed BVN and a valid ID (a driver’s license, voter’s card international passport, national ID card, or NIN slip).
  • Tier 1 (T1). An account that has a confirmed BVN but doesn’t have a valid ID attached to it.
  • Tier 3 (T3) (there’s not Tier 2). An account that has both a confirmed BVN and a valid ID attached to it is on Tier 3.

How to Upgrade My Kuda Account

If your Kuda bank account is on Tier 0 or Tier 1, you can upgrade to Tier 3 and enjoy all Kuda bank benefits. To upgrade Kuda account, you need to log into your account, tap “Account Limits” then tap “Account Upgrade.” You will then need to verify your residential address, BVN and your ID. How long does it take to upgrade Kuda account? Your account will be upgraded immediately once your documents/details have been verified.

Where Can I Withdraw Money With My Kuda Debit Card?

Kuda bank has partnered with Access Bank to make it easy for its clients in different parts of Nigeria to withdraw cash. As such, you can withdraw funds with Kuda bank ATM card at any of the 3,000 Access Diamond Bank and Access Bank ATMs. As part of its efforts to reduce the charges incurred by clients, Kuda doesn’t charge its customers for ATM withdrawals.

How Do I Deposit Money Into My Kuda Bank Account?

There are several ways that one can deposit cash into his/her Kuda bank account. This includes:

  • Through any bank in Nigeria that either has internet banking or a banking app.
  • Using a credit or debit card. To do so, go the Kuda app. Select ‘Add Money’ and then click on ‘Add by Card. For this option, depositing amounts that don’t exceed 100,000 naira is free. The charges of anything above that will depend on the third party in question.
  • Depositing cash at any of Kuda’s partner banks. To do so, go to the Kuda app and select ‘Add Money’. Click on ‘Add by Deposit’ and follow the presented instructions.

How Do I Send Funds From My Kuda Bank Account?

  • Click on Payments
  • Select Send money
  • Enter the requested details

How to Transfer Money From GTB to Kuda Bank

You can send money from your GTBank account to a Kuda account offline.

  • Dial *737*50*amount*416#.
  • Type in the Kuda account number and confirm the transfer with *737# PIN.

Kuda Bank USSD Code

How to add money to your account with Kuda USSD code.

Kuda Bank Limit

Kuda bank account limit depends on they type of your account and transaction. For example, Kuda bank card limit for Tier 3 is a maximum of 500,000 naira at once through a POS terminal and a maximum of 30,000 naira at once at an ATM. The following is the breakdown of Kuda limit based on account type.

ServiceTier 0Tier 1Tier 3
Can you add money to your account with a card?NoNoYes
Kuda bank deposit limit50,000 naira50,000 nairaUnlimited
Kuda bank transfer limit10,000 naira50,000 naira1 million naira
Can you send money to other banks?NoYesYes
What is the maximum amount you can spend on a bill10,000 nairaUnlimitedUnlimited
What is the maximum amount you can spend on airtime?10,000 nairaUnlimitedUnlimited
Can you request Kuda physical card?NoYesYes
Kuda account balance30,000 naira30,000 nairaUnlimited

Kuda Bank Charges

One of the operational strategies of this virtual bank is to reduce some of Kuda charges placed on clients by the traditional financial institutions. Fortunately, Kuda bank fees are transparent.

How much does Kuda charge for transfer? As long as you have signed up with your BVN (Bank Verification Number), you will enjoy 25 free money transfers each month. If you don’t have the BVN, your free transfers in a month will be 2. Additional transfers attract Kuda transfer charges of 10 nairas.

Kuda free services include Kuda bank sign up, card maintenance, monthly maintenance, debit/credit alerts, Kuda bank ATM card withdrawals, and using your Kuda debit card to make payments.

Is Kuda ATM card free? Kuda ATM card is free of charge. However, you will need to have a minimum 1,000 naira in your Kuda account to be able to order and receive one. This is not a fee but a minimum balance for the card request. The card will be delivered for free and there wont be any monthly fees.

How to Get Kuda ATM Card

Once you have an account with Kuda Bank, you can apply for Kuda ATM card. The process is as follows.

  • Sign into your account
  • Tap “Cards” at the bottom of the dashboard
  • Tap “Request A Card”
  • Tap “Get A Physical Card”
  • Fill in your physical address
  • Confirm your phone number
  • Type in the name you want to be printed on your card
  • Confirm your delivery details

Kuda International Card

Kuda Bank account holders can apply for Kuda international card. If you have upgraded Kuda account by confirming BVN (Bank Verification Number) and adding a valid ID card to your Kuda profile, you can request Kuda international card. When you get your get your international Kuda Card, your current card will be deactivated. You can use this card internationally.

Kuda Naira Virtual Card

Kuda virtual cards are free to create on Kuda. The cards work online in Nigeria where Mastercard is accepted.

How to Create Kuda Virtual Card

  • Open Kuda and tap Card on the menu at the bottom of your screen.
  • Tap Request A Card.
  • Tap Get A Virtual Card.
  • Confirm with your transaction PIN, fingerprint or Face ID.

If you delete yours, you won’t be able to create another one. Please, don’t delete it.

Kuda Virtual Dollar Card

At the moment, there is no Kuda dollar card. However, Kuda customer support has told SatoshiFire that they are working on major improvements to Kuda app and Kuda virtual dollar card will be rolled out soon.

How to Close My Kuda Bank Account

You can close your account at any time and at no cost. If you want to close your Kuda account, contact Kuda customer service. They will take you through the process of how to close Kuda account. Once your Kuda account is closed, you will not be able to access any Kuda services.

Is Kuda Bank Legit?

You may be asking yourself, “Is Kuda Bank safe?” Kuda Bank is safe and legit. It is licensed by the Central Bank of Nigeria. The bank uses high-security encryption used by best banks around the world. Kuda Bank insures every deposit you make into your Kuda account. For example, if a disaster takes place and the bank loses its money, the Deposit Insurance Fund of the National Deposit Insurance Commission (NDIC) is required to pay you 200,000 naira as compensation.

how to delete my kuda bank account

Final Thoughts on Kuda Bank Review

Even though virtual banking has not been widely accepted in Nigeria, there exists well-established entities that seek to transform the country’s banking sector. Kuda bank is one such institution. In addition to reducing or removing some of the charges that are traditionally associated with financial institutions, this virtual bank offers convenience to its clients. For instance, you can open Kuda account online from the comfort of your home. All you need to access the essential banking services is a smart phone with Internet connection.

More Information