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Overview Bank charges for current accounts are an emotive issue. Acres of media space are devoted to the topic. Government has imposed special legislation to control charges, and regular surveys are published by The Financial Regulator. In reality, bank charges in Ireland have not been high by international standards, but around about 2005, bank charges in general dropped for many people. Most bank charges, where they arise are accumulated for a period of a quarter, and then charged to your account. When a bank offers "free banking" it means that these quarterly charges are not applied. However, there are certain types of charges for bank services which are charged at the time the service is availed of. These charges are applied regardless of the "free banking" status of the account. Bank charges, where applied may take any combination of the following:-  | Pay as you go - each transaction is charged at a specified rate per transaction | | | Fixed charge - a charge per quarter to cover all transactions (Usually there is some limit on transaction numbers in such arrangements) | | | Maintenance Charge - a fixed charge per quarter to which a transaction charge per transaction is added | Control of Bank Charges Since the 1970's bank charges have been controlled in Ireland. Initially, the control was exercised through the Prices Commission, later through the Director of Consumer Affairs, and now through the Financial Regulator. Under the terms of the section 149 of the Consumer Credit Act 1995, financial institutions are obliged to notify every proposal to increase an existing charge or introduce a new charge. The charge cannot be applied until authorised by The Financial Regulator. The banks are required to pay a substantial fee to assess an application under the legislation. Bank interest is not covered by the legislation, but is specifically excluded. In reality, the charges authorised by the Financial Regulator are maximum charges. Banks frequently charge less than these rates or offer "free banking" "Free Banking" (personal accounts) Most bank charges, where they arise are accumulated for a period of a quarter, and then charged to your account. When a bank offers "free banking" it means that these quarterly charges are not applied. However, there are certain types of charges for bank services which are charged at the time the service is availed of. These charges are applied regardless of the "free banking" status of the account. | Services which are normally free on a typical "free banking" package | Services which are charged for on a typical "free banking" package | | Lodgements and withdrawals at bank counter Cheques - issue of cheque books and processing of cheques written Cards - issue of cards and replacement of cards if lost/stolen ATM withdrawals in Ireland or Eurozone Debit Card (Laser) transactions Direct Debits & Standing Orders Online or phone trancactions Statements Stop a cheque, direct debit, or standing order | Interest on overdrawn balances Government stamp duties on cheques and cards Cheques bounced (either cheques issued by you or payable to you Standing orders or direct debits unpaid Cheques paid in excess of overdraft limits Bank drafts Duplicate statements Copy (or original) of paid cheque Urgent funds transfers Use of debit card or ATM card outside Eurozone | | | Most banks have "free banking" packages on current accounts.  | Some have conditions attached. For example, Bank of Ireland requires that in each quarter you either (a) keep a minimum credit balance of €500 in your account or (b) that you make at least three payments from your current account using either phone or online services. Strangely, for this purpose, quarters commence in mid-Feb, mid-May, mid-Aug, mid-Nov - the exact dates in any year can be obtained from the bank. | | | Similarly, AIB customers can qualify is they (a) hold a Laser card and register for online or phone banking and (b) perform at least one Laser transaction and one online or phone transaction | | | | Most banks offer "free banking" to all students and recent graduates as well as to customers over 60 years of age. | Fee notification If your bank charges exceed €12.70, then you will be notified in advance of the date of charging Surveys of individual bank charges The Financial Regulator conducts and publishes regular surveys of bank charges. These can be accessed at www.financialregulator.ie . Business Banking Charges The Financial Regulator recommends that business customers should negotiate their bank charges. Up-to-date details of the business charges of all banks are available on www.financialregulator.ie. Remember that these charges are the maximum which these banks are permitted to charge. When negotiating bank charges, one should consider what mix of banking services best suits the business. You may have a need for bank borrowing; or you may have substantial funds available for deposit. You may need other services such as card acquisition or initiation of direct debits. Online services may suit your business best. If you are not confident of such negotiation, or if you need to audit your current banking arrangements, then a specialist adviser may help. Bankhawk Banking Solutions is one such adviser.
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