Finding the best place for your hard-earned cash

Moving current account provider is easy and can save you money. So why is it said that we'd change our partner before we our bank?

It used to be said that you’ll change your partner before you’ll change your bank. And it still appears true.  Current account switching rates in Ireland are less than 0.1%. The annual divorce rate is around 0.6%. 

This is why the banks are so keen to capture student business. They know. Get them young and you’ll have them for life.

Fee structures across the banks used to be similar, which implied that switching didn’t make much sense. These days however, particularly with the arrival of virtual banks, moving current account provider can save you quite a bit, so it’s well worth shopping around. And it's easy.

The Central Bank’s switching code requires banks to complete switching within a 10-day time frame, and this includes the transfer of all direct debits and standing orders. Your salary won’t go astray, and your mortgage will still get paid.

Nor do you even have to do any research. Independent price comparison and switching site Bonkers.ie has recently looked at the different current accounts available in the marketplace.

Daragh Cassidy of Bonkers.ie points out that as well as day-to-day fees, you’ll also be charged for things such as bounced cheques or direct debits, replacement cards, overdrafts and foreign exchange.

AIB

Let’s start with AIB, the biggest and most popular bank in Ireland. AIB has a great mobile app, a large branch network, and was one of the first banks to introduce both Google Pay and Apple Pay to the Irish market. However, its current account is expensive compared to all the other providers.

“It charges a €4.50 quarterly maintenance fee, a €0.35 fee for every ATM withdrawal and a €0.20 charge for every chip and pin transaction, self-service lodgement, online transaction, direct debit, and standing order,” explains Mr Cassidy.

“These fees are applied regardless of how much you lodge or keep in your account each month. Contactless transactions are free though.”

Student accounts, graduate accounts, accounts for those over 66 years of age and AIB’s basic bank account don’t incur day-to-day charges, nor do those who pay their AIB mortgage from an AIB current account.

An Post

An Post, which launched its Smart Account in June 2017, is a little on the expensive side. It has a €5 monthly maintenance fee and a 60c ATM withdrawal fee.

The cash withdrawal fee reduces to 50c if money is taken out at an An Post branch and you get one free post office withdrawal each week. All other day-to-day transactions are free.

“No overdraft facility is available with the account though, so if you have an overdraft with your existing provider and want to switch to An Post, you’ll need to clear it first ... An Post also has a decent mobile app and it lets you easily stay in control of your finances and avoid nasty surprises with helpful alerts for transactions like direct debits, credits to your account or failed payments," explains Mr Cassidy.

BOI

Mr Cassidy says that Bank of Ireland has been slow to innovate where technology is concerned. It has only recently launched Google Pay and Apple Pay, and the quality of its mobile app and online banking services lag behind AIB’s. BOI used to charge individually for a host of current account transactions but last November, it replaced all these with a flat €6 monthly account fee, regardless of usage, which should see most customers pay a bit less each month.

Credit union

The credit union’s current account offers all the features you’d expect from a traditional bank: Online banking, direct debits, standing orders, and access to an overdraft facility. Customers receive a Mastercard debit card, which can be used wherever you see the Mastercard logo.

The account costs €4 a month, after which all your day-to-day banking is free. However, you only get five free ATM withdrawals a month. After that there’s a 50c charge per withdrawal.

There’s an initial €25 fee for setting up an overdraft and a €25 charge every time you renew it, which is similar to most of the other banks.

EBS

The EBS MoneyManager account has no monthly account maintenance fee and no charge for day-to-day banking. There is also no minimum monthly lodgement requirement.  On the downside, there’s no overdraft facility, no mobile app, and no access to either Google Pay or Apple Pay. But, as Mr Cassidy points out, if you’re happy with the most basic of services, this is an account to consider and will cost you almost nothing to run.

KBC

KBC is the only bank in Ireland to offer digital wallets from all the top technology companies: Apple, Google, Fitbit, and Garmin Pay as well as Sony’s Wena Pay. 

And KBC was also one of the first banks to make it possible to apply for and open a current account online.

The bank’s Extra current account gives free day-to-day banking if you lodge €2,000 a month. There’s also no overdraft set-up fee either and you’ll receive preferential rates of interest on KBC savings accounts and mortgages.

On the downside, KBC is a cashless bank and so doesn’t offer cash facilities. It does accept cheques, bank drafts and postal orders either by post to KBC HQ, or customers can drop them into their local KBC Hub.

Digital alternatives

N26 and Revolut are the two digital alternatives to traditional banking. You can open an account in minutes on your phone and both offer largely free day-to-day banking.

There’s no monthly or annual maintenance fee with either provider and there’s no charge for chip and pin or contactless transactions. There’s no fee for standing orders or direct debit
payments either.

Withdrawing cash is a bit different. With N26 you get three free ATM withdrawals a month. After that, there’s a hefty €2 charge per withdrawal. Revolut allows you to withdraw €200 a month or make five withdrawals. After that you’re charged either €1 or 2% per withdrawal, whichever is higher. Both N26 and Revolut support Apple Pay and Google Pay.

PTSB

While there’s a hefty €6 monthly maintenance fee on Permanent TSB’s Explore Account, all day-to-day banking is free and you’ll also earn 10c every time you use your debit card to pay for something in store or online.

You can earn up to €5 per month through this feature alone, meaning you could offset most of the maintenance fee each month. Permanent TSB offers Apple Pay only, and its app lacks basic features such as fingerprint log-in.

So, which should you opt for?

“It’s a close call,” says Mr Cassidy. "But if you want access to a nationwide branch network, need to be able to lodge cash or cheques from time to time, and require an overdraft, then Permanent TSB seems like a good option.

"However, its digital offering is still poor so the account is by no means perfect.”

He points out too that for those who’re happy with basic banking services, the EBS MoneyManager account can’t be beaten on fees.

“However if you do all your banking online and prefer card payments over cash, then N26 or Revolut are worth a look and are an increasingly viable alternative to a ‘traditional’ bank account.”