News
Personal Current Account Charges
December 20, 2011
The Irish Banking Federation (IBF) notes from the research published today by the Central Bank that bank current account charges here are competitive and that good account management on the part of customers is key to minimising costs.
The Central Bank’s Research on Current Account Charges confirms that the charges applied by banks here are predominantly driven by account usage – the user pays principle; also that higher charges which arise where an account is ‘out-of-order’ are principal contributors to increased costs for customers. This illustrates the importance for account users of efficiently managing their accounts in order to keep costs to a minimum. IBF-member banks variously provide a range of information material as guidance to customers in this regard. Also details on all charges can be found on www.itsyourmoney.ie.
Where charges are applied, they are shown by the research to provide a competitive range across the five main banks in Ireland and also to be competitive compared to UK bank charges across a number of the customer profiles used and especially so in the case of out-of-order charges.
Furthermore, customer account switching is readily facilitated here under the statutory Account Switching Code – which was first developed by the IBF and member banks as a voluntary industry initiative.
Finally, IBF notes that the pattern of account charging that has evolved here, compared to the UK for example, relates to the system of price control operated by the Central Bank in accordance with Section 149 (13) of the Consumer Credit Act 1995.
Note
The Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing some 80 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Information: Press Office, Irish Banking Federation, tel. 6715311
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