Warning for big banks as Halifax enters market

HALIFAX has warned AIB and Bank of Ireland that it is out to take their 2.4 million customers after launching its first current account.

Halifax, the retail arm of Bank of Scotland, says anyone signing up for its current account will face no charges whatsoever and will receive the highest interest rate in the market on credit balances. The bank is promising to pay 10% interest on balances up to €2,000.

Halifax, whose parent shook up the market when began offering in mortgages Ireland almost a decade ago, said it was specifically targeting AIB and Bank if Ireland customers. The two main banks have 73% of the current account market in Ireland and Halifax said those customers are not receiving the benefits of competition.

Mark Duffy said he intended to “provoke” the big banks and would be aggressively marketing the new account, which will be available to customers from May 21 next.

To avail of the benefit of the account, which Halifax said includes the lowest overdraft rates, customer will have to lodge a minimum of €1,500 a month. Customer will not be charged any fees for transactions, such as direct debits and standing orders.

To ensure the switching process is smooth, Halifax said customer will get a 0% €1,500 overdraft for three months.

Halifax entered the retail banking market last year under the Bank of Scotland brand.