Choosing current accounts
Current account facilities
Choosing a current account
All about fees, charges and penalties
Questions to ask
Current account facilities
This is the most common account available and is a convenient way to manage your short-term financial needs as it is secure, flexible and easy to access. It allows you to:
- receive payments such as your salary, social welfare or pension income.
- get cash from your bank or by using an atm with your ATM card, debit card.
- pay for things using your debit card, writing cheques or transferring money to another account.
- pay bills in your branch or by direct debit or standing order.
- bank using the telephone or internet.
- avail of an overdraft (loan) facility.
- pay for things when abroad.
Many accounts give you free services, while others will charge you for certain things, depending on how you operate your account.
Choosing a current account
You should compare the different accounts by looking at:
- Costs involved for the services you use most
- convenience and opening hours
- internet and phone access to your account
- cards that are provided with your account
- interest rate on overdrafts and any related fees
- penalty charges on your unpaid direct debits and standing orders.
All about fees, charges and penalties
Before you open a current account, you need to compare the various costs. You may have to pay certain costs on your account including:
Fees and charges
Certain banks offer special packages for students or people over 60 years of age. Check with your bank to see if it offers services such as lower foreign exchange charges or free overdraft set-up costs if you are over 60.
If there are fees on your account, you may have to pay:
- Monthly or quarterly maintenance charges for running the account
- charges for each transaction such as a withdrawal, lodgement, direct debit or payment by debit card or cheque
- service charges for carrying out instructions such as setting up standing orders, direct debits and overdraft facilities or issuing duplicate statements.
Penalties
Most banks will charge you penalties if you do not keep enough money in your account to meet your payments. You may have to pay for:
- Unpaid standing orders
- Unpaid direct debits
- Cheques you write when there is not enough money in your account to pay it
- Replacement of lost or stolen ATM or debit cards
- Issuing a new PIN (Personal Identification Number).
Interest rates
When you are shopping around, look at:
- Interest you earn on credit balances in your account
- Interest you are charged on facilities such as overdrafts.
The interest earned on current accounts can vary between different accounts. If you keep money in your current account, look at the rates available. Some accounts pay little or no interest on the money in your current account.
If you spend more than your agreed overdraft limit, you will be charged 'surcharge interest' or extra interest on top of the interest you are already paying. These rates can vary and tend to be high so it pays to shop around, especially if you tend to use it regularly.
Questions to ask when opening a current account
When opening a current account, you should always read the terms and conditions. Also, you should ask:
- What are the fees and charges? Look particularly at the cost of the services you expect to use the most.
- How can I reduce my charges? For instance by keeping a minimum balance in the account or earning interest on credit balances.
- What services can you get? You should be provided with a full list. Telephone banking, internet, branch facilities, ATM machines, frequency of statements etc.
- What cards can I get? For example, cheque guarantee, debit, ATM. Are they combined or separate?
- How often will I receive a statement? Monthly, quarterly or half-yearly?
- What is the interest rate on overdrafts and what are the related fees? Again, you must be provided with a list.
Some financial institutions offer accounts with no transaction fees if you meet certain conditions. For example, if your account is kept in credit, or if you keep a minimum balance in your account or carry out a number of transactions using internet facilities within a set time period.
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