Kuda Microfinance Bank: Review, Is it Legit and App Safe?
Kuda Microfinance Bank Review
Kuda bank is a legit and secure digital microfinance bank, licensed by CBN. User-friendly app, quick loan overdraft, free debit card, competitive savings interest and good customer satisfaction overall. Deposits are safe with Kuda and withdrawals are fast.
Overall, Kuda, also called The Bank of the Free is a trusted digital bank that offers personal and business banking solutions to individuals in Nigeria at a reduced cost or free.
If you are in need to know all about Kuda microfinance bank and its services, this post review on Kuda bank helps you understand better.
Kuda bank is a legit and secure digital microfinance bank, licensed by CBN. User-friendly app, quick loan overdraft, free debit card, competitive savings interest and good customer satisfaction overall. Deposits are safe with Kuda and withdrawal is quick whenever you need your money.
Therefore, the post gives a review of the Kuda bank app and answers all related questions.
So let’s start.
What is Kuda Microfinance Bank?
Kuda microfinance is a digital bank that offers personal and business banking solutions to individuals in Nigeria at a reduced cost or free. Another name for Kuda is The Bank of the Free.
Originally called Kudi Money and later renamed in 2019, Kuda bank is set to transform banking in Nigeria through its operations and service delivery.
Most of its services are free such as debit cards. There is no overcharging like commercial banks. Also, higher interest rates on savings.
Interestingly, being a digital bank, Kuda operates in all states of Nigeria with its headquarters in Lagos and London.
With the Kuda bank app, customers enjoy all Kuda services. Such as savings, bank transfers, loans/overdrafts, debit cards, bill payments etc.
How does Kuda App work
Kuda is an online microfinance bank and it works by downloading the app on Google Playstore or App Store. Then, create an account and verify it with your BVN. Afterwards, you can start to enjoy all the services the Kuda Bank app offers.
Is Kuda Bank Legit and Real?
Kuda microfinance bank is legit and real because it is licenced and approved by CBN. Kuda bank’s registration number is RC 796975 and has the right to offer banking services in Nigeria.
Is Kuda Bank App Safe?
Kuda microfinance bank is safe as customers’ deposits are insured by NDIC. So, do not panic
In addition, the Kuda bank app put in place some security measures to safeguard you.
Firstly, is a strong password and fingerprint. These prevent free access to your Kuda bank app.
Secondly, is the transaction PIN. Nobody will be able to complete a transaction on the app without it.
Thirdly, by default, a screenshot is off on the Kuda app, although you can on it in the security section. This is to prevent hackers in case your phone is under attack.
In summary, the Kuda bank app is safe. However, secure your login details.
How to open Kuda Bank Account online and get Sign-up Bonus
To open a Kuda bank account online and get a 200 Naira sign-up bonus, follow these steps:
- Firstly, click this link or go to Google Playstore or App Store. Search for Kuda and install.
- Open the app, tap Start and fill in your details. Email address, Password
- Then, tap Have a referral code and enter REoK8rDO if the code is not there.
- Tap Next to finish your account set-up. BVN, ID, Selfie passport etc.
- Afterwards, deposit at least 500 Naira to your account. Tap Add Money to initialise it.
- Lastly, buy Airtime of at least 500 Naira. Tap Payments > Tap Buy Airtime
After all these, your kuda account will be credited with 200 Naira
Read my full post on how to get the Kuda bank referral bonus with the terms and conditions.
Types of Kuda Microfinance Bank Accounts
Presently, Kuda microfinance bank has two types of accounts. Personal and Business account.
1. Kuda Personal Account
Kuda personal account lets you save, spend, borrow and budget money.
Additionally, you get a free kuda bank debit card. The card will be sent to your address for free. And you will never pay a maintenance fee.
2. Kuda Business Account
With a Kuda business account, you enjoy more benefits of Kuda bank. Such as
- Bulk bank transfers
- Higher transaction limit
- Manage multiple accounts
- Send invoices.
This account is suitable for business owners or if you keep exceeding your Kuda personal account limit.
Also, you can pay people at once easily. Whether, your staff or suppliers. In fact, you can put payments on a schedule, and never have to worry about it
To open a Kuda microfinance business account, click here.
Kuda Bank Savings
Kuda Flexible savings interest rate: 5% p.a
Kuda Fixed savings interest rate: up to 7.75% p.a
The Kuda microfinance bank app offers 3 ways to save. These are Flexible, fixed and Spend+Save.
Kuda Flexible savings lets you save daily, weekly or monthly with 5% interest p.a.
Whereas, Kuda Fixed savings lets you save once for a time period. You can choose from 1 month to 1 year with interest between 5% to 7.75% per annum. Hence, if you save for a month, you get 5%, while a year’s fixed savings will give you 7.75%.
The Spend+Save is a bit different. Here, you can save a percentage( at least 1%) whenever you spend money on Kuda. Such as when you transfer money, pay bills or airtime. For instance, if you choose 1% and transfer 5000 Naira, 50 Naira will go to your savings.
Kuda Loans and Overdrafts
Kuda loan/overdraft interest rate: 0.3% daily
The ability to get a loan or overdraft on the Kuda app is one of the reasons it is popular. Interestingly, Kuda loan interest is less and easy to get.
However, Kuda is not like a loan app that you can open in minutes and borrow money. To be eligible for a loan on Kuda, you have to be using the app to make payments, transfer and save.
Typically, Kuda wants to know you are an active user. After that, you get an offer to accept a loan. At this point, you can accept or reject it.
Kuda charges 0.3% daily interest on loans and you have to repay it with the interest on or before the maturity date.
Kuda number of free Bank Transfer: 25 per month
Kuda bank gives at least free 25 bank transfers to other banks monthly. I do get 42 free transfers.
This Kuda free transfer saves you money unlike if you use other banks to send money.
However, if you exhaust this free transfer in a month, you will pay 10 Naira for each transfer.
Kuda Debit Card
Free Kuda Debit Card
Minimum balance: 1000 Naira
Kuda microfinance bank has two types of Visa debit cards it gives for free. A physical card or virtual naira card.
A Kuda physical card is like a debit card you know. You can use it to withdraw from ATMs, and use it online and POS.
However, the Kuda virtual naira card can only be used online.
To own any or both of these debit cards, it is required you have at least a 1000 Naira account balance. If you do, apply on the Kuda app and it will be sent to your address for free.
Kuda Bank Charges and Fees
Transfer to other Banks: 10 Naira
Debit card deposit: 100 Naira + 1.5% deposit amount
Of course, Kuda is called the bank of the free, yet there are deposit and transfer fees for using the app.
Firstly, Kuda bank charges 10 Naira per transfer to other banks after you exhaust the free transfers for each month.
Also, for debit card deposits, Kuda charges 100 Naira + 1.5% of the deposit amount. For example, if you deposit 5000 Naira with a debit card, you will get 4825 Naira.
Airtime and Bill Payments on Kuda App
Kuda bank also offers payment of Airtime and Bills. For instance, on the app, you buy airtime and data of:
In addition, with the Kuda app, you can pay the following bills:
- TV: DSTV, GOTV and Startimes
- Internet: Spectranet, Smile and ipNX.
- Electricity: Benin EDC, Eko EDC, Ibadan EDC, Ikeja EDC, Jos EDC, Kaduna EDC, PHEDC, and Abuja EDC.
- Betting: SportyBet, NairaBet, 1XBET, Bet 9ja, BetKing, Betway, Merrybet and Winners Golden Bet.
- Transport and Toll: Lekki Concession Company
Budget with Kuda Bank App
Budget is very important in money management. It is the right step towards financial freedom. This is why the Kuda app has a budget feature to assist you to plan your money.
All you need is to open the Kuda app and tap Budget. Tap Create a Budget. Then, fill in the amount you wish to spend in a month.
Lastly, try to stick to your budget. If not, why prepare a budget?
Kuda Bank Account Limit
The following are the limitations of the Kuda Bank personal account
|Feature||Kuda Bank Account Limit|
|Daily Transfer Limit||1,000,000 Naira|
|Transfer Per Transaction||1,000,000 Naira|
|Debit Card Deposit Per Transaction||120,000 Naira|
|Free Transfers to other Banks||25 Per Month|
|Kuda Debit Card International Transaction||$20 Monthly|
|ATM Single Withdrawal||30,000 Naira|
|Daily ATM Withdrawals||5 Per Day|
|POS Payment Per Transaction||500,000 Naira|
The table above shows that Kuda bank’s daily transfer limit from Kuda to Kuda account is 1,000,000 Naira. Also, transfer from Kuda to other Banks is 1,000,000 Naira.
The good news is that your Kuda account balance is unlimited which means you can continue your transaction the next day when you exhaust the daily limit.
Kuda Debit Card for international spending transactions is $20 monthly. This is the same amount for all banks in Nigeria. However, a dollar card – virtual or physical – does not have a limit.
Interestingly, Kuda bank allows you to increase or reduce this daily transfer limit on the app as long as it is within your account limit.
Kuda Microfinance Bank USSD Code
Presently, there is no Kuda bank USSD code to check balance, get loans, pay bills, and buy airtime and data.
But the Kuda USSD code only works when you want to deposit money from another bank into your account.
USSD Code to deposit money GTB Bank to Kuda account
USSD Code to deposit money from Zenith bank to Kuda account
*966*Amount*kuda account number#
USSD Code to deposit money from Access bank to Kuda account
*901*Amount*kuda account number#
USSD Code to deposit money from First bank to Kuda account
*894*Amount*kuda account number#
USSD Code to deposit money from Wema bank to Kuda account
*945*Amount*kuda account number#
USSD Code to deposit money from Polaris bank to Kuda account
*833*Amount*kuda account number#
Deposit Option: Ways to add money to Kuda Bank Account
On the Kuda app, apart from overdraft, there are 5 ways to deposit cash to your account. These are:
1. Bank Transfer
When you open an account with the Kuda bank app, you get an account number. With this, you can transfer money to it or receive money from someone.
2. USSD Code
You can deposit money to your account with a bank USSD code. Access Bank, GTB, Zenith Bank, First Bank, Wema Bank and Polaris Bank.
3. Debit Card
Another option to deposit money to your kuda account is through your debit card. There is a fee of 100 Naira + 1.5% deposit amount. Also, 120,000 Naira is the limit per transaction.
4. Cash Deposit
Kuda bank also partners with GTBank and Zenith. Hence, you can enter any of their branches, fill a teller and deposit to your Kuda account.
You can withdraw money from your Payoneer account to Kuda. However, this feature is currently not available
1. Branch App
Furthermore, bank transfers and card deposits are free. You also get a bonus on airtime, data and bill payments.
However, Branch does not give a debit card talkless of being free, unlike Kuda bank.
2. Mintyn Digital Bank
Mintyn Bank is an online bank in Nigeria where individuals can enjoy various banking services such as savings, transfers, investments, loans, business accounts and free ATM debit cards.
Indeed, Mintyn Bank offers much more services than Kuda such as business registration for TIN application.
Also, bank transfers are totally free on Mintyn.
3. VFD Bank
VFD bank is another alternative online bank to Kuda. With VFD you can save, transfer money and get loans.
Most transactions on VFD are free except for cardless withdrawal and bill payments. Whereas, these are free on the Kuda bank app.
Kuda bank is owned and founded by Babs Ogundeyi and Musty Mustapha
Kuda is not owned by any bank. Rather, it is a microfinance bank, licensed by CBN. Kuda bank app is not like Alat, which is owned by Wema bank.
Kuda bank does not accept crypto coins. It is not a crypto site but a bank
Presently, Kuda does not have a dollar account or a virtual dollar card. Only a virtual naira card. However, you can link Payoneer with the Kuda app which allows you to receive dollars from abroad and withdraw. Unfortunately, this feature is disabled lately
You cannot open a kuda bank account without BVN because it is one of the requirements.
Yes, Kuda ATM debit card and virtual card are free. However, you must have a 1000 Naira minimum account balance to qualify for it.
Conclusion on Kuda Microfinance Bank
Kuda bank is a trusted online bank by millions of Nigerians. The ease, competitive interests, free ATM debit card, referral bonus, security and overall service delivery are reasons why Kuda microfinance is one of the best digital banks in Nigeria.
Whether you want a personal account or business. Do you need to save quickly, get a loan, make transfers, buy airtime or pay bills? All of these and many more can be done with the Kuda bank app.
Of course, like other online banks or fintech apps, the Kuda app has some cons. For instance, I can get a higher savings interest rate elsewhere.
To balance this, you can open accounts with others apps. I also have accounts with Branch app, Barter, Piggyvest, Reaprite, and PennyTree.
Therefore, try the Kuda bank app and let me know your experience.
Lastly, leave a comment or question below and I will respond ASAP.