How to deposit a dividend warrant into your bank account.

Posted by Akanakem on Tuesday August 16, 2016 at 8:10:44:

Every shareholder is entitled to partake in the company’s profits at the end of it's financial year or from time to time. This profit includes entitlements such as a dividend. Most companies usually pay dividends to Shareholders at the end of the financial year or quarterly. The dividend is sent in a dividend warrant and the warrant is like a cheque from the company which can be paid when presented to banks in Nigeria.

How does one convert a dividend warrant to cash or money? You'll have to deposit it into a bank account that bears the same name as it's printed on the warrant. The process of depositing a dividend warrant into a personal bank account is almost similar to the process of depositing a cheque.

Secondly, most banks have a rule that dividends can only be paid directly into a Current account, so you may need to open a current account with the bank if you don’t have one. When you walk into the bank, you need to inform the Teller that need to clear a dividend warrant. The Teller will ask for the dividend warrant and an ID card. You may be asked to write your number, phone number and two signatures at the back of the warrant. The Teller will make a photocopy of your ID card and issue you a deposit slip to fill. Enter the details of your current account on the deposit slip and return back to the Teller. Some banks may request for at least 48 hours to verify and clear the dividend while others do so instantly. After the verification, the amount will be credited into your account.