Naira Account Vs Domiciliary Account: Which one is the best AdSense Payment Method you can recommend for content creators in Nigerians? Find out which is the best payment currency for your online money-making hustles.
A question commonly asked on our WhatsApp Channel by Nigerians and some other African countries.
What Is The Best AdSense Payment Method For Nigerians?
Listed below are other related questions that I want to address in today’s article:
- “What type of bank account should one use to receive payment from AdSense?”
- “Should one use a local currency account like Naira Account, or should one use a foreign currency Domiciliary Account?”
- “What’s the advantage of using one over the other?”
I’m going to give a perfect answer to this question in a minute.
Another person asked:
“I’m about to add my payment details to my AdSense account now, but someone said I should not use my Naira Account; please, is it a must to use a Domiciliary Account?
If I want to open a Domiciliary Account, please, how will I go about it?”
Naira Account Vs Domiciliary Account: Which is The Best For AdSense Payment?
I will start by answering the second question, but first, let’s understand what a domiciliary account is all about.
What is a Domicile Account?
What is a Domicile Account? A domiciliary account is a bank account that lets you receive, send, and transfer money from another country to the country where you live. On your dom account, you can get any foreign payment.
What is a Naira Account?
What is a Naira Account? A Naira Account is a bank account denominated in Nigerian Naira that enables you to receive payments in Nigerian Naira.
Requirements For Opening Domiciliary Account in Nigeria
For you to open a domiciliary account, you need to contact your bank on how to open one with them. Reach out to any bank in your country, and they will provide you with the requirements.
I believe the standard requirements for opening a domiciliary account in Nigeria are as follows:
- 2 Passport Photographs.
- 2 Reference operating current or domiciliary account.
- A minimum of $100 or Equivalent in Euro or Pounds (depending on the currency that you want to open).
- Recent utility bill (Not more than 3 months old)
Naira Account Vs Domiciliary Account
Now let’s get down to the main question; ” Naira Account or Domiciliary Account for Google AdSense“.
So I’m going to share an Ideal scenario right now to simplify the whole process.
Let’s say we have STELLAR and JAMES here; both of them have a YouTube channel, and their channels were monetized for AdSense earnings last month; they end 500 each from AdSense on their Channel.
So you can see that both of them end up the same amount now. Let’s see how much they eventually get paid at the end.
Stella used her dollar account as a payment method, while James used his Naira account.
For Stellar to convert her earnings, she has to do it manually because when she receives her 500 earnings into her dollar account for her to use locally, she has to go to the bank and withdraw the 500 in cash and take it to the parallel market for conversion to naira at the exchange rate of 720 Naira to a Dollar (720NGN/1USD) which is the Exchange Rate as at the time of publishing this article.
So what Stella eventually got in return was 360,000 Naira (360,000NGN) as her earning for the previous months.
James doesn’t have to go to the bank to cash out his earnings in dollars because his earnings in dollars have been converted to Naira automatically by his Bank at the official rate of 440 Naira (440NGN/1USD) because he is using a Naira Account.
So he will receive 220,000 Naira (220,000NGN) paid into his Naira Account.
So here’s the difference…….
Stella and James earn the same amount in dollars, which is 500. Still, they are receiving different amounts in Naira because Stella is using a Domiciarly Account and receiving 360,000 NGN while James is using a naira account is receiving 220,000 NGN for the same 500 dollars.
So it’s all about the EXCHANGE RATE…..
When you use a Naira account (Local bank account), the financial institution automatically converts your dollar earnings into naira using the official exchange rate (440NGN/1USD).
When you use a dollar account (foreign currency account), you can only go to your bank and withdraw the dollar in cash and then probably go to a parallel Market to exchange it for Naira, and in most cases, the parallel market EXCHANGE RATE is much higher than the OFFICIAL RATES in Nigeria.
Although I don’t know about other countries, this is how the process runs in Nigeria.
James is losing about 30% of his earnings because he’s using a Naira Account as AdSense Payment Method.
It’s left for you now to decide whether you want to use a Nigeria or dollar account to receive money from Google Adsense or as a Freelancer.
Both of them will work as an AdSense payment method, but their values at the receiving end will not be the same.
if this is the same or different in your country, I would like to know your country and how you receive your payments in the comments section.
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