Warning over extra bank fees

CONSUMERS have been warned that banks may continue to hike charges as they are put under pressure to bring in cash.

Current account holders have also been advised to visit their bank website and download a copy of the fees and charges.

Director of moneycoach.ie, Frank Conway said that if cash is tight it is really important that people know how and where to avoid expensive penalties.

“Banks are now charged with bringing in as much cash as they possibly can. They are likely to continue to grow the range of services that they will charge for,” he said, adding that there are some indications that even greater bank levies or charges may be considered at EU level as a means of paying for the bank bailouts.

“If agreed, these will also be passed onto consumers,” he said.

“Expanding beyond consumer current accounts, I would encourage a new culture of more people improving their own understanding of fees and charges. Credit cards are also a big fee generator and it is important that consumers have a better understanding of how many fees can be charged in addition to the monthly interest charge,” said Mr Conway.

Among the charges banks slap on customers are transaction fees. Bank of Ireland charge €0.28 per transaction, or a flat €11.40 up to 90 transactions per quarter. You can avoid these fees if you lodge at least €3,000 and maintain it, or have a level of activity the bank has set for fee-free banking.

AIB is a little bit different in that they have a quarterly charge and varying charges associated with self-service versus staff-assisted charges range from €0.20 to €0.30.

There’s also the government stamp duty of €2.50 a year on ATM cards and €2.50 on debit cards.

A good tool for comparing bank charges is the comparison calculator on www.bonkers.ie.