The news from Bank of Ireland will see the introduction of a flat-fee subscription model, replacing account transaction fees.
It’s the moment many Bank of Ireland customers have been waiting for - a more transparent fee pricing structure for current account users.
Bank of Ireland, one of Ireland’s leading banks, has today announced it will be overhauling its fee model for current account holders, including the introduction of a flat monthly account maintenance fee to replace a whole host of transaction charges.
The new pricing structure from the bank is aimed at making its current model simpler and more transparent for new and existing customers.
Keep reading for the full list of changes to be introduced and when...
Flat monthly fee
The changes announced by Bank of Ireland (BOI) will see it massively overhaul its existing pricing structure for current account holders from November 23rd.
The bank will introduce a new flat monthly fee of €6 across the board, while eliminating most day-to-day transaction charges for current account holders.
This means account holders will pay a minimum of €72 annually to maintain an account with the bank.
Important to note is that charges such as government stamp duty, and non-euro debit card and non-euro ATM withdrawal fees will still apply.
The new pricing structure will also see BOI end its ‘no transaction fees’ offer on the same date, and will see these customers pay the same flat fee of €6 per month.
This offer previously allowed customers who maintained a minimum balance of €3,000 in their account for an entire fee quarter to avoid being charged day-to-day transaction fees.
Approximately 10% of customers currently pay the quarterly maintenance fee of €5 but don’t pay any transaction fees because they keep the prescribed minimum balance each month.
Banking will remain free for seniors, students and graduates with the relevant accounts being exempt from the new account maintenance fee.
Removal of day-to-day transaction fees
Under the new changes from BOI, customers will no longer have to pay from a total of 26 fees and charges.
Some of the key charges that will no longer apply include:
- Debit card contactless transactions
- Debit card chip and PIN transactions
- Debit card online transactions
- ATM and lodgement transactions
- Automated / self-service transactions (e.g. direct debit, standing orders)
- Over-the-counter in branch transactions
- Unpaid direct debits, unpaid standing orders, unpaid cheques or referral items
Chief Executive of Bank of Ireland’s Retail Ireland division, Gavin Kelly, said:
“At Bank of Ireland the financial wellbeing of our customers is at the forefront of everything we do and the changes we’re announcing today are about making personal accounts easier to get, easier to understand and easier to use. Taking the complexity out of everyday banking will help our customers to be more aware and in control of what they spend, save and plan for.”
“We’ve completely overhauled our digital account opening process to make it easier and quicker than ever to open an account with us. We’re also making banking charges easier to understand by doing away with 26 different fees and charges and replacing them with a simple flat fee, a similar pricing model to Netflix or Spotify subscriptions where you pay the same every month and consume as much as you want. With unlimited day-to-day transactions it offers value for money that allows you to do more with your account. I’m also pleased to announce that Google Pay will be available next week to Bank of Ireland customers, making it easier for those who prefer the convenience of paying at the counter with their phone.”
Streamlined account opening
As part of BOIs plans to make its interactions with customers more convenient it has also introduced a new and improved digital account opening service, making it much quicker and easier to apply for an account.
New customers can now complete an online application from their mobile phone, with the ability to upload and submit any supporting documentation “in less than 10 minutes”.
Bank of Ireland is following in the footsteps of the likes of Revolut and KBC who have already streamlined account opening processes from mobile applications.
Introduction of Google Pay
Last but not least, Bank of Ireland is also set to introduce Google Pay for personal customers next week.
The introduction of Google Pay will allow customers to add their BOI credit and debit cards to the contactless payment system, in turn allowing customers to make mobile payments in stores with Google products.
Bank of Ireland currently doesn’t support Apple Pay or Fitbit Pay with its banking products.
Much needed change
The new, all-in-one fee structure announced from BOI is much needed and makes the bank's charges far easier to understand, more competitive, and means customers can plan more strategically around what they're expected to pay with far less bill shock expected as a result.
The change in its fee structure is likely in response to the ever-advancing threat of fintechs Revolut and N26, whose simple product offering is poaching business from traditional banks.
The elimination of transaction fees will undoubtedly be welcomed by existing customers of the bank, however, its monthly account maintenance fee remains quite high with an annual charge of €72 - and that’s not taking into account stamp duty or foreign currency exchange when travelling abroad.
The long-awaited introduction of Google Pay for customers is also positive to note, however many customers will be wondering whether the introduction of Apple Pay is far behind.
On the whole it’s good news for consumers but there are still cheaper options out there for those willing to switch…
Compare current accounts
If you’re considering switching your current account provider it would certainly be worthwhile comparing all the options available to you over on bonkers.ie
Use our current account comparison tool to compare all accounts in just seconds.
Remember, you can only save by switching so check out bonkers.ie today.
Keep in touch
Are you a Bank of Ireland customer? Have you been impacted by the pricing change? We’d love to hear your thoughts.