Making Cents: KBC and Ulster Bank customers must make the big switch

Photo: Sam Boal / RollingNews.ie

With Ulster Bank and KBC preparing to leave the Irish market, a large number of Irish customers will be looking at options for their day-to-day banking needs.

Switching current accounts can seem a daunting task, given the number of direct debits and other payments in and out most of us have set up. 

But the Central Bank has a standardised Switching Code, so in many cases your new provider can look after large portions of the reorganisation for you. 

The Competition and Consumer Protection Commission (CCPC) highlighted recently that there is no obligation on consumers to use this switching process; ‘if you would rather close your old account and open a new one at your own convenience, then you can do so’. 

But honestly, anything that reduces paperwork is to be welcomed and I would recommend availing of the standard switching process where possible.

But although the Central Bank Code will help with the move, it will not decide where you should move, the choice of new current account is yours.

Traditional banks accepting new customers include AIB, Bank of Ireland, EBS and Permanent TSB, while An Post Money and credit unions also offer current account services, as do online providers N26 and Revolut. 

Customers can also currently open accounts with KBC at the moment but, as already mentioned, the bank is in talks about exiting the Irish market in the future so that has to be factored into your decision.

There are a number of factors that should be taken into consideration when choosing your new current account. All the providers listed above have different fee structures so your individual banking needs and usage will determine which is the best account for you.

Factors to consider include whether you need an overdraft or not, how often you use ATM facilities and what your preferred method of payment is when out and about.

For example, the EBS MoneyManager account is an extremely low-cost basic current account, with no monthly maintenance fee or day-to-day banking charges. EBS offers basic online banking and the account comes with an EBS Debit Card that can be used anywhere you see the Mastercard symbol. 

But you cannot get an overdraft facility and you won’t have access to either Google Pay or Apple Pay so if either of those features are important to you, MoneyManager is not the way to go. Other banks also offer basic bank accounts, with conditions attached.

ATM charges also vary widely so this is definitely something to think about when selecting your new account. Digital only banks N26 and Revolut don’t charge maintenance fees on their standard account and there is also no charge for many day-to-day-day transactions like contactless payments or direct debits. 

However, ATM withdrawals get expensive fast. N26 allows customers three free withdrawals per calendar month; after that there is a €2 charge per withdrawal. 

Revolut offers €200 free ATM withdrawals per month with its standard plan. Any more, you will pay a 2% fee on all funds withdrawn, with a minimum fee of €1 per withdrawal. By comparison, neither Bank of Ireland nor Permanent TSB charge for ATM withdrawals but both have monthly maintenance charges.

There are also some additional features that may sway you to a particular bank. AIB customers who pay their AIB mortgage from an AIB current account are able to avoid day-to-day fees, while it and other providers waive fees and charges for some customers, such as students and those over a certain age. 

Permanent TSB’s Explore Account gives customers 10c back every time they pay with their card in-store, online, with Apple Pay or Google Pay (up to €5 per month) and also offer cashback when you pay Sky and SSE Airtricity by direct debit.

If you are unsure of which provider is right for you, there are two online comparison tools I recommend trying. At ccpce.ie/consumers/money-tools, you can select accounts to compare and see exactly where two or more accounts differ on fees.

The bonkers.ie tool is also useful, as it allows you to add numerous filters when comparing the different accounts. 

You can specify how much you will lodge a month and how many transactions of different types you will have - direct debits, ATM withdrawals and online transactions - and it will factor that information into the comparison. 

Take a look at a recent statement to give you a picture of your normal usage and then use that information to guide your choice.

Pick of the week

If a prepay smartphone is on your shopping list for someone this Christmas, you can avail of a Tesco Mobile offer and add a fitness watch into the bargain. 

Tesco is offering customers who purchase a Xiaomi Redmi 10 before December 28 a free Xiaomi Mi Smart band 5. 

The deal costs €149.99, not bad considering the Smart band 5 is on sale for €40 at www.xiaomi.ie. 

Both the phone and the fitness tracker have been well-reviewed as solid budget devices that offer considerable value at their price point. 

The promotion is available to customers that purchase the phone from Tesco and Tesco Mobile stores in the Republic of Ireland or online from www.tescomobile.ie.  

In the event that a customer returns the phone, they must also return the Smart band 5.