Why GTBank Deducts ₦11.25 Naira and Other Small Charges
Many GTBank customers have increasingly raised concerns about the frequent appearance of small deductions such as ₦11.25, ₦3.75, ₦6.98, ₦35, and ₦50 on their transaction history—charges that often appear without clear narration and can easily go unnoticed until they accumulate to significant amounts. These micro-fees have become a major talking point in Nigeria’s banking landscape, especially as digital banking expands and customers demand more transparency.
The truth is that GTBank is not arbitrarily deducting these amounts; the charges stem from a combination of regulatory requirements, government taxes, and standard banking service costs that the bank is mandated to apply.
However, the most common among them—the ₦11.25 deduction is directly tied to Value Added Tax (VAT) charged on specific bank services such as SMS alerts, card maintenance, and certain digital transactions. Understanding why GTBank applies these fees, how they are calculated, and the regulatory framework guiding them is essential for customers who want to manage their accounts better and avoid unnecessary losses.
Why GTBank Deducts ₦11.25
The ₦11.25 deduction commonly seen on GTBank accounts represents Value Added Tax (VAT). VAT is a statutory 7.5% tax imposed by the Federal Government on specific banking services. Banks act only as collection agents.
The ₦11.25 appears most frequently because VAT is often calculated on a standard ₦150 service fee.
Formula:
VAT (7.5%) × ₦150 = ₦11.25
This is why GTBank customers repeatedly see this amount.
Services that typically attract the ₦11.25 VAT include:
- SMS alert monthly charges
- Debit card maintenance fees
- Token-related charges
- Certain electronic banking fees
- Transaction processing on specific channels
GTBank SMS Alert Charges — A Major Source of VAT Deductions
GTBank charges a monthly fee for SMS alerts. This fee is usually ₦150, which immediately attracts VAT of ₦11.25.
Total monthly SMS notification cost:
₦150 (service fee)
₦11.25 (VAT)
How GTBank customers can avoid this:
- Switch from SMS alerts to free email notifications via:
- 7377*2#
- Internet Banking
- GTBank Mobile App
This is one of the most effective ways to reduce monthly deductions.
GTBank ATM Withdrawal Charges:
GTBank adheres to the Central Bank of Nigeria’s ATM fee policy:
- First three withdrawals on other banks’ ATMs per month: FREE
- From the fourth withdrawal, ₦35 is charged
- VAT is also added, resulting in deductions like ₦37.63.
Breakdown:
₦35 ATM fee
₦2.63 VAT
₦37.63 total.
GTBank and Stamp Duty (₦50 Deductions):
GTBank applies this rule uniformly. The charge applies when:
- You receive transfers over ₦10,000
- Deposits above ₦10,000 enter your account via POS agents or cash deposit channels
- Stamp duty is a statutory government levy, not a GTBank induced charge.
Read Also:Why Nigerian Banks Deduct ₦50 From Transfers
GTBank Card Maintenance Fees:
GTBank charges quarterly maintenance fees on Mastercard/Visa debit cards. These charges attract VAT, which leads to recurring ₦11.25 deductions.
Quarterly card maintenance fee:
₦150
VAT (7.5%) = ₦11.25
₦161.25 total
This is consistent with the industry-wide comparison in Card Maintenance Fees By Bank.
Other Micro- charges on GTbank Accounts:
Many GTBank customers also experience smaller deductions that are not immediately obvious. These charges often align with what is described in Hidden Bank Charges You Might Not Know.
These may include:
- ₦6.98 USSD session fee (shared with telecommunications providers)
- ₦10 stamp duty on merchant POS payments
- Reversal fees with VAT
- Card reissuance VAT
- ₦3.75 VAT on ₦50 services
- ₦4–₦10 per SMS alert (for customers not on consolidated monthly billing).
Because GTBank itemizes charges in detail, customers may see more individual debits than with other banks that consolidate fees
How GTBank Customers Can Reduce Charges
Drawing from strategies in How to Reduce Bank Charges in Nigeria, GTBank users can significantly lower their annual deductions.
Practical steps include:
✔ Switch from SMS alerts to email alerts
Eliminates ₦150 + ₦11.25 monthly.
✔ Use GTBank ATMs rather than other banks’ ATMs
Avoids ₦35 + VAT charges.
✔ Consolidate deposits to reduce stamp duty exposure
Minimizes ₦50 deductions.
Leverage GTBank digital channels
Mobile and internet banking reduce processing fees.
✔ Track your account regularly
Streamlines complaint management and reversals via GTConnect.
The Regulatory Framework Behind GTBank Charges:
Most deductions—₦11.25 VAT, ₦50 stamp duty, ₦35 ATM charges—are governed by:
Federal Government tax laws
The CBN’s Guide to Charges by Banks
NIPOST stamp duty regulations
Interbank settlement frameworks.
In conclusion: GTBank’s recurring ₦11.25 deduction is a VAT charge applied to service fees—primarily the ₦150 SMS alert fee, card maintenance fees, and other regulated charges. Additional deductions such as ATM withdrawal fees, stamp duty, and USSD charges are governed by national banking policies, not unique GTBank actions.
While these charges are legitimate, GTBank customers can significantly reduce them by leveraging digital channels, limiting interbank ATM withdrawals, opting out of SMS alerts, and monitoring account activity closely.
Transparent communication and proactive account management remain the most effective tools for minimizing banking costs.
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