NIB Ditch Free Banking For New Customers and now existing customers

I have both a current A/C and custody account with NIB.
I contacted them to close both.
As custody account only holds (useless untradeable) Anglo share
They should provide some way of writing off those shares I’d have hoped – I think Revenue is allowing people to treat Anglo shares as complete losses for CGT purposes.

But I don’t think you need a current account to support that custody account, I’ve not been really following what NIB are doing but just this week got a mail saying they’re going to convert my current account to a no charge custody cash account (not sure if that’s the exact name for it).

I’ve only ever used that current account to feed an esaver account and my custody account. At the moment I’m still happy enough with their service, 40 euro is a reasonable charge for the custody account (as long as you've some shares there a bit more valuable than anglo ones).
 
thanks to all those that responded. question ignored here just like with nib. i should have known better yeah. :rolleyes:
 
As custody account only holds (useless untradeable) Anglo shares.
they say they cannot close it (it already costs €40 p/a),

My custody a/c was free as part of my package and at that stage only had Anglo shares, When NIB introduced €40 annual charge I told them to close it, they replied my Anglo shares were illiquid and have nominal value only, to close I would have to instruct them to either remove this holding or transfer them to another broker.

A form was enclosed for this purpose, I selected the option of permanently removing and transferring all rights associated with these shares to NIB.

That was May last year.
 
My custody a/c was free as part of my package and at that stage only had Anglo shares, When NIB introduced €40 annual charge I told them to close it, they replied my Anglo shares were illiquid and have nominal value only, to close I would have to instruct them to either remove this holding or transfer them to another broker.

A form was enclosed for this purpose, I selected the option of permanently removing and transferring all rights associated with these shares to NIB.

That was May last year.

Thanks for that info.
I will follow up that route.
 
why say standard debit card for 24/7 and premium debit card for easy plus/prestige??? there must be a difference.

There is a slight difference, well cosmetic one at least. The premium card has a sort of gloss or glitter if you look close enough, the standard one doesn't.

I just pulled two out and looked at them because I wasn't aware of the 'difference' Unless like me you examine them then the difference wouldn't be noticed.

In terms of functionality, they're the same.

I know Northern Bank cards are not embossed - they have the information printed in white 'ink' across the face of the card. When I say embossed I mean letters not punched out, the card is flat if you get me/ I am making sense!
 
I just rang them about this as I only use my Easy account just to service my mortgage.

They will convert the Easy account to a loan servicing account (with no fees). No effect on the terms & conditions of the mortgage.
 
I have a LTV mortgage and I only use my Easy Account to service that mortgage. I don't have any cards/cheque book on the account. I got a letter saying my account would switch over to a fee paying 24/7 account. I sent them a message via ebanking (could not get through over the phone) and I received a reply saying my request had been passed on to the Package Application Unit and that they would be in touch. That was the 11th April and I haven't heard anything yet.

I notice today their website wording seems to be a bit different:

I only use my account to pay my mortgage/personal loan. Will I still move to 24/7 ?
In this instance your account will migrate to a similar non-fee paying account. If however, you have a chequebook or card attached to your account you will move to 24/7. Alternatively you may close your account and service your loan by a direct debit from another account.
(NB. If your homeloan is currently on an LTV mortgage rate, as part of your terms and conditions you will be required to migrate to 24/7 or one of our other account packages).

I didn't think they could force you to take a product in order to sell another product. I didn't mind doing it at the time as there was no additional cost involved. However if they are now charging its a very different story.

Deirdre
 
I had a call from them yesterday querying which package I would be taking. I said I didn't think they could unilaterally move me from a free account (Easy) to a fee paying one (24/7). Like many posters here I only use the account for servicing my LTV tracker mortgage - one standing order in p/m, one direct debit out p/m. The NIB rep sounded very uncertain when I challenged her and couldn't get off the phone quick enough, saying she needed to check my documentation which she didn't have in the branch. I'll wait and see.
 
When I signed my mortgage agreement, I was also given a 2 page "Conditions for NIB LTV mortgages".

It states in 3(a), "You must maintain, for the duration of your loan, on of our Easy, EasyPlus, or Prestige Packages. If such package is not maintained by you we reserve the right to convert your LTV rate to out then applicable home loan rate(fixed or Var as the case may be); and..."

This is different from the prementioned morgage agreement clause(section 6), in that it specifically mentions the package names. Now that Easy, EasyPlus or Prestige Packages will no longer exist, is it fair to argue that the clause is void due to their actions?

Has anyone who uses the current acc for day-to-day banking (soon to be charged for the service), been able to hand back cards etc, and have their account set back to a feeless "Service Type" account, and freely move to another bank for free banking, whilst not affecting their LTV tracker ?


I have an LTV Tracker with NIB and at the time I took it out I was told that I had to take the EasyPlus a/c for which I have paid fees of approx €18 a quarter for the last 8 years. Now if my understanding of some of the info in this thread is correct - NIB should not have linked the taking of that fee-based account to the mortgage? I use the account to pay the mortgage and to transfer payment to my NIB mastercard and that is it.
It would be great if I could close that account and not pay fees but obviously i have the same clause as wolverine so would need to be sure that closing the account would not affect my tracker t&cs.

I have previous experience of the wily nature of NIB's tactics and would do nothing without something in writing on headed paper. I previously took a case against them to the Financial Ombudsman about an investment mortgage, which I won, but I can tell you that NIB managed to win in the end by increasing their home loan variable rate mortgages to the higher level that was being applied to their investmest mortgages. I have a very low opinion of how NIB treats it's customers.

I would be very interested in hearing how you get on Dr Moriarty? I also wonder if NIB could be liable to return the fees that they have charged people on accounts taken out purely to service mortgages???
 
I would be very interested in hearing how you get on Dr Moriarty?
Well, it’s taken a couple of months and gone ‘around the houses’, from the Branch Manager to the complaints department and now, for some strange reason, to the Head of Sales and Marketing, in whose name we’ve received unsigned letters (duplicates to each of us, with my wife’s name misspelt) addressing us by our first names and full of the kind of cheery marketing pap you’d expect about the great services NIB provides and the way they like to reward their loyal customers.

On the substantive issue, it says:
Following this review, you have three options available to you:
1. Daily Banking Packages - Given your requirement for a daily banking package you can continue to maintain your 24/7 package for a fixed quarterly fee of €5. Alternatively you may decide that an Easy Plus or Prestige package better suits your needs, where for a fixed quarterly maintenance fee, these packages also offer free transaction banking and some excellent additional benefits such as preferential interest rates and discounts on other banking services. The leaflet enclosed will explain each package in further detail.
2. Servicing Account - A National Irish Bank Servicing Account is available for customers who choose to maintain the account purely for servicing their mortgage. No fees apply to this account. Therefore you could decide to move all your other banking transactions to an alternative account and maintain a Servicing Account purely for your mortgage payments.
3. Direct Debit - You also have the option to close the account(s) mentioned above and complete the Direct Debit form enclosed which will allow you to service your mortgage from an account with another bank. Choosing this option will have no effect on the LTV rate on your loan and no fees will apply [their emphasis].

I’ve replied indicating that option 1 is of no interest to us, since in the meantime we have already transferred all of our transactional banking to another bank. Our Freebank account is therefore now effectively functioning as a servicing account along the lines described in option no. 2. We've again stressed that we do not wish to close this Freebank account until such time as the requirement to keep it open is no longer a part of the terms and conditions of our mortgage.

On the face of it, option no. 3 seems to indicate that NIB is prepared to remove this requirement (especially as they helpfully enclose two DD mandate forms). Indeed, the cynical part of me is inclined to see this as a deliberate trap for the unwary, who might reasonably assume from NIB's bolding of the 'no effect on the LTV rate' phrase that it was OK now to close their current account without jeopardising the tracker rate on their mortgage. In reality, of course, this rather vague wording, in an unsigned letter from the Head of Sales and Marketing is nothing like adequate confirmation for this purpose. The reference to ‘the LTV rate on [our] loan’ omits the point that ours is a tracker mortgage guaranteed to remain for the life of the loan at no more than the prevailing ECB rate plus 0.5%. The fact that the margin over the ECB rate is determined by our LTV is of far less significance.

I’ve therefore asked once again that, before closing our Freebank account, NIB provide us with written confirmation, duly signed and authorised, stating that to do so will have no effect upon the status of our ECB LTV tracker mortgage — presumably the simplest way to do this would be to provide a signed letter from the Branch Manager or from the Head of the Mortgages department confirming that the relevant clause in our Loan Agreement document is no longer operative. If they won't do that then they can (rather pointlessly) require us to keep a facility account open for as long as they wish; I'll simply feed it from our new BoI current account instead of paying into the mortgage account directly.

I may still refer the matter to the Financial Services Ombudsman, just to keep them working a bit longer. The gobsheens have wasted enough of my time over this...
 
Fair play to you on this. I couldn't agree more: you would need an explicit signed statement from them that establishes the relevant clause in the mortgage agreement no longer applies. I certainly wouldn't accept anything less than a signed letter.

For now, I'm sticking with them, as I do all of my banking with NIB. I plan to leave it a few months for the dust to settle and then move. I was just about to move to AIB for their free banking and look what happened there! Last thing I want is the bother of moving to UB only to have them do the same. If it's still in place in 6 month's time, it looks to be the best option to move to them, but like you I'd choose to retain a (free) servicing account at NIB for the mortgage.
 
Well, it’s taken a couple of months and gone ‘around the houses’, from the Branch Manager to the complaints department and now, for some strange reason, to the Head of Sales and Marketing, in whose name we’ve received unsigned letters (duplicates to each of us, with my wife’s name misspelt) addressing us by our first names and full of the kind of cheery marketing pap you’d expect about the great services NIB provides and the way they like to reward their loyal customers.

On the substantive issue, it says:

I’ve replied indicating that option 1 is of no interest to us, since in the meantime we have already transferred all of our transactional banking to another bank. Our Freebank account is therefore now effectively functioning as a servicing account along the lines described in option no. 2. We've again stressed that we do not wish to close this Freebank account until such time as the requirement to keep it open is no longer a part of the terms and conditions of our mortgage.

On the face of it, option no. 3 seems to indicate that NIB is prepared to remove this requirement (especially as they helpfully enclose two DD mandate forms). Indeed, the cynical part of me is inclined to see this as a deliberate trap for the unwary, who might reasonably assume from NIB's bolding of the 'no effect on the LTV rate' phrase that it was OK now to close their current account without jeopardising the tracker rate on their mortgage. In reality, of course, this rather vague wording, in an unsigned letter from the Head of Sales and Marketing is nothing like adequate confirmation for this purpose. The reference to ‘the LTV rate on [our] loan’ omits the point that ours is a tracker mortgage guaranteed to remain for the life of the loan at no more than the prevailing ECB rate plus 0.5%. The fact that the margin over the ECB rate is determined by our LTV is of far less significance.

I’ve therefore asked once again that, before closing our Freebank account, NIB provide us with written confirmation, duly signed and authorised, stating that to do so will have no effect upon the status of our ECB LTV tracker mortgage — presumably the simplest way to do this would be to provide a signed letter from the Branch Manager or from the Head of the Mortgages department confirming that the relevant clause in our Loan Agreement document is no longer operative. If they won't do that then they can (rather pointlessly) require us to keep a facility account open for as long as they wish; I'll simply feed it from our new BoI current account instead of paying into the mortgage account directly.

I may still refer the matter to the Financial Services Ombudsman, just to keep them working a bit longer. The gobsheens have wasted enough of my time over this...

Nothing about your reply from NIB surprises me Dr Moriarty. I would not be closing any bank account to do with my tracker mortgage on the basis of that unsigned letter! After my previous experience with NIB I would check & double-check everything.
I am tempted to start the ball rolling on this myself to see if I can escape paying €76 a year for the next 17 years for the privilege of paying my mortgage through their Easy plus account. I just don't know if I can face another tedious long-drawn out battle with them again.
 
Cheers, Butter. I agree that it's tedious, but at least I've now had their Final Response Letter (the capitals add great gravitas, don't they!) and have therefore indicated to the Branch Manager and the Head of Sales and Marketing that if this letter isn't forthcoming within a reasonable amount of time, without further correspondence from my side, the file is going to the Financial Services Ombudsman.

I'll be damned if they're getting even €26 a year (the cost of a 24/7 account with one monthly transaction) from me for the next 17 years... :)
 
They confirmed to me today that my Easy account would become an account servicing account from 1 June and that this would have no fees. When asked for confirmation, they also confirmed that my LTV tracker mortgage would be unaffected by the change. Apparently I'll be getting a letter within the next week confirming this.
 
Based on the number of transactions in recent quarters, I calculated I was looking at about 140 to 150 euro per annum for my current account, if I stayed on the 24/7 package. I must point out that I didn't have the complication of a mortgage to deal with.
Initially I was so worked up I considered switching to either AIB or BoI, leaving the required amount on deposit with them for "free" banking.
However, because I've had 36 smooth years with NIB, I decided that I should first go to my branch (SCR, Dublin 8) to explore the best NIB option before going elsewhere.
The result - I'm staying with NIB.
Why?
I have a medium sized sum in an e-Saver account.
I found that by opting for the 125 euro Prestige package, that sum would earn 3.5%, up from 2% at present.
I also found that money in my current account would earn 1% and at times I might have a fair amount there, depending on flow.
Thirdly having the Prestige Mastercard entitled my wife and I to good free travel insurance, worth about 65 euro a year. (more than half the cost of the Prestige package straight away!!!)
I also had a flexible access account previously, which earned 1%. With the Prestige version of that I will now earn 1.5%
All of the above plus my long-time relationship with NIB, and the convenience factor, led me to stay with NIB.

Instead of focussing on "free" banking, I opted for getting the best return for my payment instead. Rather than paying for each transaction under the 24/7 option, I now pay 125 over the year, have no charge per transaction and improved terms in other areas that more than compensate.
The 24/7 was the worst option. The Easy Plus was better but with my combination of requirements, the Prestige suited me best. I will come out better off by about 500 euro in fact because of the better return on my Prestige Fixed Term account, the small interest from the current and holding accounts and I won't be spending 65 euro on travel insurance. Now I know you may say that I could have got the better deposit rate elsewhere too, maybe, but for convenience, continuity and their ebanking system, NIB was more appealing. And I don't have to be worrying about having a required sum in my current account every day!
If nothing else, I reviewed a lot of my arrangements!
 
...Instead of focussing on "free" banking, I opted for getting the best return for my payment instead...

An excellent viewpoint to take and one that more should focus on when deciding on whom to bank with and what product(s) to take.

The focus of many has been on keeping their banking free even though free banking is becoming harder and harder to maintain. The extra benefit accounts at Ulster Bank and NIB (as far as I know these are the only two banks with these type of accounts) should be considered by all who are contemplating their banking options and they may find a product that provides value for money.
 
Got the letter confirming that my account will be changed to a servicing account only for my mortgage without any fees.

I can only surmise that this is a direct result of people on this forum (and others) applying some pressure. Well done.

Here's a scan of the letter (Remove the excess spaces to get to the link) :
www . mediafire . com /?ey33li7u3naw259
 
Now I know you may say that I could have got the better deposit rate elsewhere too, maybe, but for convenience, continuity and their ebanking system, NIB was more appealing.
This has to be taken in isolation - but you know that already. For 'convenience' - please replace with 'customer lethargy'.

Instead of focussing on "free" banking, I opted for getting the best return for my payment instead.
But you didn't - as outlined above.
I to good free travel insurance, worth about 65 euro a year. (more than half the cost of the Prestige package straight away!!!)
Sorry - but I'm a natural skeptic when it comes to this sort of thing. Where has the valuation of €65 come from? I checked their website and they are very short on detail as to what is involved with this travel insurance cover.

With this being your first post - and given the sunny disposition you seem to present toward the nib offering, can you declare if you have any vested interest in what you have posted?


For many on this thread, the issue that they had was that NIB had coerced them into opening a current account in order to extend them access to a mortgage product. The addition of fees has brought the ethics and legalities of this to the fore. However, it looks like NIB have been adjusting their position as they go on this one. I just got a letter through confirming in writing that I would be moved to a mortgage servicing account rather than their 24/7 account.


Got the letter confirming that my account will be changed to a servicing account only for my mortgage without any fees....Here's a scan of the letter...
Yes, that's exactly the same as what I received this morning.
I can only surmise that this is a direct result of people on this forum (and others) applying some pressure. Well done.
No doubt in my mind on this either. They're obviously avid AAM readers...
 
Back
Top