A swipe of your debit card, paying your bills by direct debit, transferring money to family members. For so many of us, our current account is something we use every day. It’s an important part of our life but how much importance do we really place on our provider? Cost, service availability, quality and dependability, as well as nostalgia factors, are considerations when it comes to the business you bank with. However, it is worth taking stock every now and then to assess just how happy you are with the service that is provided. And if you are unhappy, making the switch isn’t as difficult as you think.

Finding the Account for You

There are eight different current accounts on the market from seven banks (KBC offers an ‘‘extra current account’’) and all have different terms and conditions. Finding the one that suits you best does require a little thought though.

If you are the type of person that prefers to withdraw cash from an ATM rather than pay with a debit card, AIB, Bank of Ireland and KBC’s standard current account will charge you between €0.25 and €0.30 on each withdrawal. Watch out for newcomer N26 Bank which is charging the highest withdrawal fee, €2 per withdrawal, but it offers five free withdrawals every month.

While this fee may seem high, it is due to the company’s ethos of encouraging mobile and cashless banking. Most banks are moving in this direction with only AIB and Bank of Ireland charging for purchases made with a debit card to the tune of €0.20 and €0.10, respectively. Permanent TSB, as an extra incentive, offers €0.10 back for every transaction carried out with a debit card up to a maximum of €5.

Go Contactless

Permanent TSB and Ulster Bank have no fees on ATM or debit card usage on their accounts. They do, however, have far higher quarterly fees. AIB charges €4.50, Bank of Ireland charges €5 and KBC charges €6 in comparison to both Permanent TSB and Ulster Bank who charge over double this at €12 per quarter (€4 charge monthly). Therefore, it is important to consider how often you make withdrawals or make debit card payments before deciding which current account suits you best. Although these quarterly fees are high, they are a predictable charge that you can budget for, and this format might suit you as a consumer.

Most current accounts have ways to avoid these extra charges but to do this, you either have to lodge a set amount per month or keep a certain amount in your account per quarter.

For example, AIB will provide “free” banking meaning there is no quarterly fee or charges on using a debit card provided you have a minimum balance of €2,500 in your account for all fee quarter. Bank of Ireland will waive transaction fees but not the quarterly fee if you keep €3,000 in your account. This saving will be applied on a quarter-to-quarter basis but remember this is only a consideration if you are confident that you will have this type of money resting in your account.

KBC’s extra account operates slightly different in that it requires you to lodge €2,500 every month in order to qualify for free fees. Also for people who are over the age of 60, Permanent TSB does not charge any fees.

Get Around the System

There are also other ways to get around the system. For example, most banks do not have any charges on cashback facilities, as well as electronic transfers, so this is something worth looking into in order to minimise charges.

Contactless payments are also something all banks have made the move towards and none of them charge for utilising this service. The limit on these payments has risen to €30, meaning it is now easier to make payments with your debit card, and with many retailers, it is super fast.

Another very important area for people to consider is their overdraft. Of course, no one wants to see their account go in the red but this situation can be a reality. This is where being prepared and doing your research ahead of time can prevent nasty shocks.

With the exception of EBS which has no charge, all banks charge at least €25 to set up and renew an overdraft every year with Bank of Ireland charging €30. Is that really money you want in their account rather than yours?

N26 does not offer an overdraft facility but is more lenient when it comes to unpaid standing orders, charging €3.

In comparison KBC, AIB and Permanent TSB charge €10 on each unpaid standing order. Ulster Bank and Bank of Ireland top the charts on this figure, charging €12.70.

There are a lot of figures to consider when considering whether to change current accounts. So the best thing to do is to sit down and make a list of things that are important to you. This will make it clear which bank would work best for you.

For more information, The Competition and Consumer Protection Commission has a section on its website dedicated to information on what to look for when researching current accounts.

It also has a comparison section that makes it easy to compare the different details and charges of each bank side by side. Check out www.consumerhelp.ie

Switching tips

Pick a provider

You can find out more about the different current accounts on the cost comparison website www.consumerhelp.ie. Once you’ve found the one that’s right for you, contact the new bank. Be sure to obtain the following so everyone is on the same page:

• A copy of the relevant terms and conditions.

• Full details of any standard fees and charges.

• Details of any interest rates that apply.

• A point of contact.

If you have an existing overdraft and you want to transfer it, you need to talk to your new bank about this. They may also carry out a credit check on you.

Pick a switching date

Agree a date to switch. Make sure this is a day where activity on your account is kept to a minimum.

You will also need to:

• Provide proof of your identity and address to your new bank.

• Decide if you want to keep your old account open.

• Order bank cards and a cheque book for the new account.

Set up internet and telephone banking and any bill payment arrangements

Complete and return an account transfer form

You need to complete an account transfer form. Your new bank will send this to your old bank so they can supply your direct debits and standing orders helping to make the switching process smoother.

Switch

Your new account will be up and running within 10 working days of the switching date you selected. CL