AIB current account holders to qualify for free banking

[ClubMan]

While the fees are an irritant, I am more interested in a bank that (for example) offers an overdraft rate at 21st century rates i.e. at 5 or 6 percent and not twice that.

That's fair enough. Just wondering why you started this thread so if bank charges are not an issue for you?

 

[CCOVICH]

I have a BOI account and while the AIB free banking is tempting, I don't trust them not to bring fees back in through the back door as other posters have said below. I am going to wait to see what happens with NIB/Danskebank and BOSI.

Who said (in this thread) that they would bring them in through the back door, and couldn't any bank who currently offers free banking do this?

While the fees are an irritant, I am more interested in a bank that (for example) offers an overdraft rate at 21st century rates i.e. at 5 or 6 percent and not twice that.

Haven't overdraft rates always been higher than personal loan rates? Otherwise, where is the incentive to take out a personal loan?

Anyway, I'm happy enough to have the €100 or so in my pocket at the end of the year.

 

[oysterman]

Of course it won't be free banking at all - only "free transactions banking" - so you'll still pay account maintenance @ €18pa; a facility fee (for the right to pay premium rates of interest on pre-arranged overdraft borrowings) of €25.39; statement fees; something called an "on-line overdraft" of €15.24 per quarter - whatever the hell that is (and I bet I have one....); and, quite frankly, too many other charges to list - but do have a look at them for yourself (paying particular attention to how trifling the "transactions charges" section appears within the ugly lineup):
[broken link removed]

If anything, I think this offer will simply serve to draw the attention of AIB customers to the very high charges they (will continue to) pay.

I've banked with AIB for a couple of years (I'm a refugee from the customer service wasteland that is BOI) and have been happy enough to pay for the good service I have received.

But the paucity of this offer and its trumpeting as some sort of breakthrough for the consumer is just nauseating.

 

[Theo]

I was just on to them today and they confirmed that you have to have a debit card as well as use phone/internet to qualify. I use the phone/internet all the time but don't have a debit card.
Still, it seems it will be worth it to get one (20 euros stamp duty per annum versus 100 euros in charges per annum)

 

[CCOVICH]

Of course it won't be free banking at all - only "free transactions banking" - so you'll still pay account maintenance @ €18pa;

statement fees;

I'm not sure that you will pay these charges. From their [broken link removed]

Where the customer meets the qualifying criteria, free transaction banking is automatic and no maintenance and transactions fees will be applied for that fee quarter.
Customers will not need to opt in for this offer. Service fees will still apply e.g. unpaids, duplicate statements and FX bureau transactions.

(My emphasis)

 

[oysterman]

Thanks for the clarification.

I'd read the press release you've linked but had stopped scrolling down when I got to the "for further details, please contact..." bit so I missed the clarification bit.

This is all good news - it's just such a shame that I'll have to get one of these Maestro cards and pay the government a tax for the privilege of embracing the cash free economy.

 

[hamster]

Hmmm,

If you qualify for free banking and during any quarter you make 1 visit to the bank to cash a physical cheque or some necessary transaction in the bank itself - does this impact the new offer ? would you pay charges for that quarter.

 

[MonsieurBond]

Haven't overdraft rates always been higher than personal loan rates? Otherwise, where is the incentive to take out a personal loan?

Yes, they have. However, loan rates of 7 - 8% are not hard to get, while overdraft rates are usually well over 10% and in some cases as high as 13% which is heading for TWICE the loan rate. All while the lending rates are at historic lows. Something is not adding up here.

There is still plenty of margin there for Irish banks and certainly room for new entrants to undercut.