Consumers urged to shop around for free banking
Consumers could avail of free banking if they simply shopped around between financial institutions, new research revealed today.
Mary O’Dea, consumer director with the Financial Regulator, said a survey among banks had revealed half of the accounts examined offer free transactions and have no account maintenance fees.
Ms O’Dea said: “The increased availability of free banking is a welcome development for consumers especially since it is easier than ever to switch to a new bank.”
But the consumer director urged people to read the small print on free bank accounts as there are often terms and conditions attached.
“For example, your bank might require you to keep a certain minimum amount in your account and would charge fees if your balance falls below that level. Or the account may only be free as long as you do not have an overdraft,” she said.
The research also highlighted the availability of special current account packages for people aged 60 and over.
The offers give customers free banking and some also include other benefits such as free foreign exchange or no overdraft set-up fees.
But Ms O’Dea said: “With some banks, you need to request the facility. While your bank may not have a special package for customers over 60, they may give free transactions to all their customers. So, regardless of your age, if you are paying for transactions on your current account, you can also use our survey to see whether you could get better value.”
The regulator, whose survey is available from www.itsyourmoney.ie or by phoning the consumer help-line on lo-call 1890 77 77 77, said people should contact their bank to see whether there are other options or new products available.
The survey found the charges paid depend on how the account is used – the more transactions the higher the amount paid.
The amount charged for withdrawals and lodgements usually cost from 20 cent to 30 cent per transaction.
The research showed there were no quarterly fees or transaction charges for withdrawals or ATM use on the Permanent TSB switch current account. The regulator found the same applied to the National Irish Bank freebank current account as long as the banking customer ensured the account was in credit.
