BoI follows AIB in changing rules over account fees

Bank of Ireland has defended its decision to change the rules governing fees on its current accounts that will see over 200,000 customers face charges.

A spokesperson said the provision of current accounts by the bank was a costly exercise. “Upgrading our online services and providing facilities like apps; these are considerable investments for the bank and the bank has to get some funds back.”

The changes in accounts mean consumers now have to keep a minimum balance of €3,000 in their account or else they will face fees. The changes come into effect on Nov 19.

Bank of Ireland had provided free banking if you had €3,000 passing through your account in a financial quarter and you made nine online or telephone banking transactions.

Customers who fail to keep a minimum balance of €3,000 will be hit with a transaction fee of up to 28c per withdrawal, lodgement, or transaction.

“Bank of Ireland confirms that it is introducing revised qualification criteria for customers to benefit from ‘no transaction fees offer’ on their personal current account with effect from the start of the fee quarter commencing 19 Nov 2012,” the bank said.

The customers will also miss out on interest that they could earn on their €3,000 balance as there will be no interest paid on this sum.

The cost of replacing a lost, stolen or damaged deposit ATM/debit cards will also increase from €5.90 to €8 for personal and business customers.

A spokesperson said that transaction charges will not apply to student, graduate, and golden years current accounts but graduate account holders would be liable for the higher replacement card charges.

The move to charge follows that of AIB in May, when it announced that a minimum balance of €2,500 would be required for customers to qualify for free banking.