Stinkin' banks!! Query re charges w/rant thrown in

C

coolaboola

Guest
AAAAGGGGHHHHH!!!!

Nearly three years ago the friendly manager at my local branch of W@nk, sorry, Bank of Ireland wrote to me to tell me that he valued my custom so much he would henceforth be charging me for every transaction I made. As I make many transactions every week (phone and internet banking to pay bills and make cash transfers, Laser card for all shopping and cash withdrawals, etc.) this was going to shape up to be a hefty sum. So I said to myself "I don't think so honeybunch!" and went shopping for a new bank.

At the time Ulster Bank were the only major bank offering free current account banking so long as my account was in credit. So I got me a new bank account with them.

Last week I got a letter from my friendly bank manager at Ulster Bank saying that henceforth current accounts will incur bank charges even more exhorbitant than those of Bank of Ireland if I allow my balance to drop below EURO 500 credit. GRRR!!!

One of my New Year's resolution (remember those?) was to streamline my finances. This included not allowing what should be my interest-earning savings languish and waste away in my current account. So this might well mean (if all goes according to my best laid plans) that I will be keeping the barest minimum in my current account. And thus it is quite likely that my balance may drop below EURO 500. And I don't fancy being lumbered with a big bank charges bill for the pleasure.

So I'm shopping once more for a new bank. Any suggestions please? I need Laser card/ATM and phone banking facilities after that I don't have any particular requirements - other than I'm not fleeced for the pleasure of giving the bank my hard-earned cash.

On a related note I'm ashamed to admit that while I requested by phone that my aforementioned Bank of Ireland account be closed way back when I went bank shopping it was never closed and I have only just got around to putting my request in writing. Only thing is I'm not exactly sure how to go about closing a bank account. I've just written a letter to my old bank manager requesting that the account be closed. Do I need to do anything else? Include any documentation to prove I am who I say I am? That sort of thing...
 
Ooops! Looked at recent postings on "banks to avoid" post and see that NIB is coming out tops. At least the rant was theraputic! And now I doubly need the advice on closing bank accounts as I'm about to close my Ulster Bank account too!
 
You will need to close the account(s) in writing. A letter with name, account number etc. stating the account should be closed should be sufficient, unless there is an outstanding balance or charges. Easiest thing is to pop into the nearest branch of whatever bank and tell them in person/ sort out any withdrawal or payment needed.
 
Bank charges

Why don't you go and open your own bank or airline and see how difficult it is to run the business!
 
Re: Bank charges

Note that they may try and charge you for closing the account by offering a 'transfer' service whereby any late transactions which hit your account after closing are automatically redirected to the new account.
 
Re: Bank charges

Thanks Statler! Will do just that. Sorry wetweek, I don't get ya. Please explain.

BTW, does anyone on AAM manage their finances through a building society rather than a bank? I haven't heard much about the building societies as an alternative to banks.
 
NIB

Getting back to NIB - I have been banking with them for about 12 years - have two Freebank and a savings account and pay NO bank charges as long as account is in credit. This is easy to keep an eye on through internet banking - you can transfer money from one account to another in seconds. On the odd occasion where I have gone overdrawn - the charges are really piled on - but I can't complain - because I am defintely saving in the long run. Customer service is not great but I think you will find that in most banks.
 
Re: NIB

does anyone on AAM manage their finances through a building society rather than a bank?
Click to expand...
Not really practical if you need to make frequent cheque payments, standing orders or direct debits. In general, the only way of getting money out of a BS account is via a trip to the branch office.
 
Re: Bank charges can be OK

Coolaboola,
Perhaps your bank is indeed fleecing you. Have you tried having a friendly word with the manager? If you are indeed a good customer and the bank is making loads of cash off your deposits, I'm sure the manager will cut you a deal re fees. In my own case, the quarterly charges were waived as part of a deal we cut when putting mortgage business through the branch. Even though the mortgage is now paid off, the free banking remains. Someday the bank will get a new manager and perhaps our free banking will go -- but that will probably be OK with us, because I don't really expect banking services for nothing.

500 euro in credit is a pretty meagre amount to qualify for free banking and you should go for it. Unless you invest that 500 in shares and are lucky enough to double or triple your money, you won't get jack sh*t for it in interest from any bank. Best available deposit rates at the moment are about 2.5% with a minimum investment of 1,000 and 7-21 days notice on withdrawals from Anglo Irish or similar banks. Your 500 under these conditions would net you €12.50 a year and you would not have easy access in emergencies.

Take the deal. Churning your bank account is usually more trouble than it's worth, as you have already found out.

Just my 2 cent worth!
 
Re: Bank charges can be OK

I run my EBS account as my only current account. I have a DD set up for my SSIA and have a card for withdrawing money from hole in the wall. I also get my pay put in by SO. I can transfer to my VISA (AIB) online and have an online account which I can view transactions etc. I Dont need a cheque book or laser so I dont know what the jackenory is on these. There are no charges for anything except the €10 tax for the card.
Downsides :
You can only withdraw from an AIB banklink machine.
I cant take out cash abroad (no cirrus).
I get around the above by pre loading CC as necessary.
Hope this helps
Ec
 
Re: Bank charges can be OK

Is the free banking at EBS dependent on you paying your salary in there?
 
Free Banking

The need to have €500 or €1000 in your account to qualify for free banking may be meagre to some, but is alot to others and alot of work to make sure you don't dip below it. In the UK I had a Bank of Ireland accout that was free once you stayed in credit, even of it was 1p. Banks make a fortune out of the fees, even to the point of charging for your pay being credited (28c a go)

Anyway it's their right I suppose and we need to use them. So all you can do is minimise the fee. In BoI they have a flat quarterly fee. If we didn't go for this then our quarterly fee would be €50 or so, as opposed to about €17. We run a busy account!
 
Re: Free Banking

Is the free banking at EBS dependent on you paying your salary in there?
Click to expand...
Not in my case as I was never charged fees originally but you may need to ask now just in case.
 
Re: Bank charges

The need to have €500 or €1000 in your account to qualify for free banking may be meagre to some, but is alot to others and alot of work to make sure you don't dip below it


Well, yes, I agree, and I hope my comments did not sound callous. The point, however, is that banks are less likely to offer "free" banking to individuals who keep low average daily balances than they are to more affluent customers. However, fees are often at the discretion of the manager. Do you have a mortgage with the branch? Then they are more likely to deal with you on fees because you are a good profitable customer.
 
Re: Bank charges

Elcato, how long have you your EBS account?
I opened up an account recently and they said they don't do Direct Debits.
I'll be able to pay Eircom, ESB and Gas online but I've no idea what'll I be able to do for things like paying rent or other money transfers.
 
Re: Bank charges

Hmmm. I dont have any DDs with them so it could be just a standing order is what they do. The SSIA is the same every month. Is your rent the same each month ? Maybe they just do a SO for the SSIA.
 
Thanks folks!

Thanks for your responses and advice folks. I opened an NIB Freebank account yesterday (no charges, interest-earning). Once that's complete (waiting to get my new Laser card in the post ...!) I'm going to close my Ulster Bank account.

Extopia, I hear ya. But my view is that I'm supplying the bank with their 'raw materials' and, in the case of my Ulster Bank current account am foregoing the interest I might otherwise earn on my balance. And I don't want to be charged for the privilige of doing so. When I do get my act together properly I intend to just keep a 'float' in my current account to cover my day-to-day expenses and to keep the rest of my funds somewhere where they'll earn their keep. I view having to keep an additional €500 in my account on top of my day-to-day expenses float to avoid charges as an extra cost.

But on a bigger issue I, we, as consumers should vote with our feet and, more importantly, our wallets. If there are several suppliers of same the same products, be it baked beans or banking services, with no discernable difference between the products and one supplier supplies the product cheaper than all the others then, everything else being equal, we should chose that supplier. Otherwise how are we supposed to feel all indignant and self-righteous when we're whinging here on AAM at all?! :)

c
 
Re: Thanks folks!

Hear hear, coolaboola. I'm already a member of your brigade even if it was bleedin inconvenient.
 
Re: Thanks folks!

Coolaboola, you're dead right!

I've got the forms from NIB and am weighing up the pros and cons of leaving UB. Does anyone know if you are required to maintain a current account with them if you have your mortgage there?

I do feel the tug of loyalty though - on the whole they have been quite good to me; mostly very curteous and helpful. There's also an element of "better the devil you know ..." in this decision. However, at the end of the day I've paid fair and square in interest and charges (when overdrawn) for their services and don't want to be a mug.

Rebecca
 
Re: Thanks folks!

Does anyone know if you are required to maintain a current account with them if you have your mortgage there?
Click to expand...

I don't think so and I'd imagine that such a condition would fall foul of the Concumer Credit Act or similar consumer finance legislation. Note however that UFirst account holders qualify for a 0.1% discount on UB's published tracker rates so even after the payment of the UFirst €9 per month maintenance charge and any other transaction it might work out worthwhile staying put. I certainly wouldn't stay put out of loyalty myself though.
 
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