ConsumerValue: Financial Services
1. Bank Accounts
A bank account is the most straightforward kind of “financial service”, and for many of us it is essential to enable receipt of payments from our employer, to service a mortgage, to operate a credit card and so on.
While a proportion of people do not hold a bank account, in the main a straightforward current account is accessible to almost everyone and can assist greatly in the management of your personal finances.
It is now much easier to shop around for the best value and save money on bank accounts. It is a lot simpler too, because banks have developed a code of practice to help customers who want to switch their personal accounts from one bank to another.
The following frequently asked questions explain what is involved and what to look out for.
What should I look out for in a bank account (whether it’s my first or I am switching)?
The personal banking market is more competitive than ever. You should choose your bank or consider switching based on the best offers available in the following areas, for example:
- Interested payable on credit balances
- Standards of customer service
- Levels of fees and charges
If I am switching, do I have to cancel all my old standing orders and direct debits?
Thanks to the new code of practice, the banks will do it for you.
If I am switching, what do I have to do?
Ask your new bank for its "switching pack". This will take you through each step of the process, and the bank should also give you:
- A copy of the terms and conditions (including services provided)
- Details of any fees and charges, and any interest rates that apply
- A point of contact to help you with any queries
- An Account Transfer Form to fill in. This will allow it to set up existing standing orders and direct debits on your new account, and transfer any balance from your old account to your new one
The Account Transfer Form is a big part of simplifying the process from your point of view. But it is worth checking your list of standing orders and direct debits from your old bank - and it is a good time to tell the new bank if you'd like to make any changes to your standing orders or direct debits on your new account.
To open any new bank account in Ireland, don't forget that you will need to give:
- Proof of identity, such as a passport or driver's licence
- Proof of your address, such as an electricity bill or a bill for your home phone
How long does it all take?
Once your new bank approves your application, your new account should be up and running within a fortnight (10 working days).
Which banks are covered by the switching code?
All the members of the Irish Bankers Federation. See www.IBF.ie for the full list. You could also ask you bank or the prospective bank if they have signed up to the switching code.
Can I switch banks if my account is in the red?
Possibly. You will first need to get your new bank to agree if you want to transfer a debit balance to your new account.
Does the switching code just cover current accounts?
No. It also covers deposit and savings accounts. But it doesn't cover accounts where you need to give advance notice of withdrawal, or accounts which carry guarantees or other obligations.
Is there anything else I should bear in mind?
Once you receive your new bank cards, return any old bank cards and any unused cheques to your old bank. They should give you a refund of government stamp duty of €0.15 per unused cheque. After opening your new account you may also need to:
- Order bank cards and cheque book for the new account
- Set up internet and telephone banking and any relevant bill payment arrangements
- Give your employer and other credit transfer sources of your new account details (if, for example, your salary is directly paid into your account)
What if I just want to move to a new branch?
This isn't covered by the above procedures, because you are sticking with the same bank, so it should be a much simpler process again.
Write to the bank and ask for your account to be transferred to the new branch. If you need more information on what's involved, talk to the customer services people at the new branch or your old one.