Kuda is one of Nigeria's best-known digital banks — "the bank of the free" — popular for free transfers, no card-maintenance fees and high-interest savings. This 2026 guide explains what Kuda is and whether it's safe, how to open an account, the free-transfer allowance and charges, the overdraft, the savings interest rates, card and ATM fees, and how to reach customer care (and why Kuda has no USSD code of its own).
What is Kuda and is it safe?
Kuda is a fully digital bank operating under a CBN-issued national Microfinance Bank (MFB) licence. User deposits are NDIC-insured up to ₦2 million per depositor, so your balance is protected up to that limit. Kuda has no physical branches — everything runs through the app — which is how it keeps costs low and offers free or cheap transactions. Being CBN-licensed and NDIC-covered means it's a regulated bank, not an informal wallet.
How to open a Kuda account
Opening an account takes a few minutes:
- Download the Kuda app from the Apple App Store or Google Play, or use your web browser at app.kuda.com;
- You must be at least 18, a Nigerian citizen or resident;
- Provide your Bank Verification Number (BVN) and National Identity Number (NIN) to verify your identity.
Once verified, you get a full account number for receiving and sending money, plus access to savings and the overdraft.
Free transfers and charges
Kuda's headline feature is free transfers — but with a monthly cap. You get 25 free outbound interbank transfers per month. After you've used those 25, each further transfer costs ₦10 plus 7.5% VAT (₦0.75). Transfers between two Kuda accounts are always free and unlimited. Separately, the government's ₦50 EMTL stamp duty applies to the sender on any electronic transfer of ₦10,000 or more — this is a statutory levy across all Nigerian banks, not a Kuda charge, and it applies regardless of your free-transfer count.
Kuda overdraft and loans
Kuda offers instant overdrafts from ₦1,000 to ₦150,000, with the amount you qualify for depending on your account activity. The cost is a flat 0.3% per day, with a repayment term of 30 to 90 days. Because the rate is charged daily, repaying early keeps the cost down — a ₦10,000 overdraft repaid quickly costs far less than one carried for the full 90 days. The overdraft is designed for short bridges, not long-term borrowing.
Kuda savings and interest rates
Kuda's savings products are among its biggest draws, with several options at different rates:
| Product | Interest (per annum) |
|---|---|
| Spend+Save | No interest (auto-saves a % of spending) |
| Flexible Savings | 8.03% |
| Fixed Savings (non-premium) | 10% – 12% |
| Fixed Savings (premium) | 12% – 14% |
| Locked Savings | up to 16% |
Fixed and Locked savings pay more because the money is committed for a set period; Flexible savings is accessible but pays less. Rates can change, so check the current figures in the app before committing. For most users, Fixed or Locked savings beats leaving money idle in the spending balance.
Card and ATM charges
Kuda charges ₦1,000 to issue, replace or renew a physical card, but there are no card-maintenance fees. For cash, Kuda allows three free ATM withdrawals per month across Nigeria; after that a ₦35 withdrawal fee applies. On top of this, under CBN rules ATM-owning banks may charge ₦100 for withdrawals up to ₦20,000 at on-premises ATMs, and ₦100 plus up to ₦500 at off-premises third-party ATMs. To minimise fees, use your free monthly withdrawals and stick to on-premises bank ATMs.
Customer care and USSD
The Kuda contact-centre number is 0700022555832. Use it for failed transfers, card issues, overdraft questions or account access. Note that Kuda does not have its own USSD code — because it's app-based. To move money via USSD, you dial your source bank's USSD code and send to your Kuda account number (for example, First Bank's *894*amount*KudaAccountNumber#). As always, never share your PIN, OTP or password with anyone claiming to be support.
Kuda vs OPay, Moniepoint and PalmPay
All four are CBN-licensed and NDIC-covered, but they lean different ways. Kuda is the "no-fee current account" choice — 25 free transfers, no card-maintenance fee and strong fixed-savings rates — but it has no POS network and no USSD code of its own. OPay and PalmPay are stronger for everyday payments and have offline USSD (*955# and *861#), and PalmPay leads on savings rates. Moniepoint is the pick for POS agents and business banking. If you mainly want a clean, low-fee account with good savings and don't need agent/cash-in services, Kuda fits; if you rely on USSD or cash withdrawals at agents, pair it with one of the others.
Common Kuda questions and fixes
A few issues come up often. If a transfer fails but you were debited, the amount is normally reversed automatically within 24 hours — keep the reference and contact support if it isn't. If you can't withdraw at an ATM, remember you only get three free withdrawals a month before fees apply, and a physical card (₦1,000) is needed for ATM access. If you want to fund your account, transfer to your Kuda account number from any bank (free from another Kuda account), or use your source bank's USSD. And if your overdraft offer is low or unavailable, use the account more actively — the limit is based on your transaction history.
Is Kuda worth using in 2026?
Kuda remains one of the strongest digital banks in Nigeria for low fees and savings: 25 free transfers a month, free unlimited Kuda-to-Kuda transfers, no card-maintenance fees, and savings rates up to 16%. The trade-offs are no branches, no own USSD code, the ₦1,000 card fee, and the standard ₦50 stamp duty on transfers of ₦10,000+. For an everyday account where you also want to earn real interest on savings, Kuda is hard to beat — open it with your BVN and NIN, use the free transfer and withdrawal allowances wisely, and move idle cash into Fixed or Locked savings.