Bank customers should shop around

NEW data just released by the financial services regulator has shown that there continues to be a wide disparity on bank fees and charges.

Customers across the country may be paying hundreds of euros a year in charges while some are paying none at all, the latest survey of current charges by the Irish Financial Services Regulatory Authority has found.

And IFSRA said that the motor insurance market continues to throw up a huge variance in quotes to customers.

IFSRA director Mary O'Dea said that consumers can make significant savings on fees and charges and they should examine how they use their accounts to avail of these potential savings.

"The savings may not be immediate, as with other financial products, but over time they can be considerable. The way you operate your current account can make a difference to your costs. For example, some institutions may charge less for phone or internet transactions than for paper transactions," she said.

IFSRA said that depending on the bank, annual charges can range from zero to more than €126. The survey yesterday issued tips for consumers on how to reduce their current account fees.

These include monitoring how many transactions there are on the account in a typical fee period and checking whether the account has a maintenance fee in addition to the fees per transaction.

Customers should also establish if the account has a flat fee per month or quarter that includes a certain number of free transactions.

They should check if there are more paper or branch-based transactions on the account than electronic ones, whether the account is in credit or overdrawn, and whether there is a minimum credit balance.

The regulator has also published its third survey of motor insurance costs which shows the potential savings consumers can make, as well as for the first time highlighting the impact that penalty points can have on insurance availability and costs.

The survey once again features six driver profiles, and for the first time, quotations for a driver with penalty points have been sought from insurers.

"You may find it more difficult to get cover if you have six or more penalty points on your licence," Ms O'Dea said. "Some companies will apply an automatic loading to your premium, while others will review your individual case. The good news for drivers is that our cost survey reveals potential savings of up to 58% for some driver profiles."

IFSRA intends to keep the pressure on financial services companies by releasing data on costs throughout the year.