AIB cancelling HIGH INTEREST (1%) Current Accounts

maringo

Got letter saying they are withdrawing this "high interest 1%" current account - am writing to tell them that I'm "withdrawing" my account. Also heard they are cancelling people's overdraft facilities. They had no problem taking the taxpayers bailout and now seem set to screw the very people who bailed them out. :mad:

ScouseMouse

Dont know about the high interest savings account, but why would they cancel peoples overdrafts?

The only thing I can think of is they have customers in permanent overdraft, and I am not talking a few hundred, and there is a risk they may not get their money back. The customers concerned could be a credit risk.

I have an overdraft for a thousand euro on my main account and have not heard anything from them. That particular account could move between +€2000 to -€1000 every month. Its good for them, for me to be in the red, as they can charge me extra interest.

It would make no sense for them to kill this.

chris85

superscouse wrote: »

Dont know about the high interest savings account, but why would they cancel peoples overdrafts?

The only thing I can think of is they have customers in permanent overdraft, and I am not talking a few hundred, and there is a risk they may not get their money back. The customers concerned could be a credit risk.

I have an overdraft for a thousand euro on my main account and have not heard anything from them. That particular account could move between +€2000 to -€1000 every month. Its good for them, for me to be in the red, as they can charge me extra interest.

It would make no sense for them to kill this.

+1

All the banks are withdrawing overdrafts which are not being serviced properly. Most people dont realise with most overdraft you must have account in credit 30 days in the years. An overdraft is a short term facility.

The banks will keep in place overdrafts which are being maintained.

ToxicPaddy

I just saw this thread now.. I got a letter from AIB telling me that my OD facility is due to expire.. now I dont ever remember them telling me that it had an expiry date on it, if anything they encouraged me to have one, which I tool, and increase its size, which I refused.

So I called them and they informed me that I should take out a loan to cover the overdraft and pay it back over 12 months.. I informed them that I am in a secure well paid job and at the end of this month the account will be back in credit, getting paid, if not sooner as I am owed some money by a family member which is going into my account this week..

I informed them I would be seeking an extension on my OD and would NOT be taking a loan of any type, in fact I am cutting back all spending and I am clearing my personal loan and car finance early.

However the person I spoke to said its highly unlikely they would extend the expiry date OD facility.. So I mentioned that its no problem, if they want to do that, work away, but this time next month I wont be an AIB customer anymore as I have an account I use for a property I have with another bank who would be more than happy to take my business and constantly remind me of that everytime I am in there or speak to their customer services team on the phone.

To say I am a bit p*ssed off at AIB is an understatement. I always pay everything on time, have a good credit rating and make a point of keeping everything up to date..

Any idea what they are doing this? Are they closing all OD facility on all current accounts?

BuffyBot

Overdrafts are supposedly reviewed every year. This may not have been the case in better times, but the banks are certainly putting more scrutiny on them now.

As has been pointed out OD's are supposed to be for temporary use, but common practice seems to have been for people to count it as "owned" money - so if you're account is constantly in OD, then it's not being used as designed. It doesn't matter so much if you're paying it off every month, but if the account holder is constantly living in it, then they're going to look at it.

Rebel1977

You wont know until you apply for overdraft only reason it would not be sanctioned again is if you have had unpaid items on your account, constantly overdrawn, limit does not match your monthly salary.

matt70iu

Have a so called high interest current account myself. Got the letter telling me I would no longer be earning interest.

To be honest it was so little anyway I don't care. I rang them to make sure I won't loose my free banking which I was assured I wouldn't. If I was to loose that, would cost me about 40e a quarter.

Don't and never have had an overdraft so can't speak for that side of things.

Frainc

I also have a high interest account, this quarter I paid 40 euro in fees and the savings account part is at 0.5% interest. Ill be changing from AIB to another bank soon, trying to see what the best options are. I asked the manager about the fees and could they be set to a certain amount each month. She said they don't do that anymore, she recommended not having any saving account and transferring my savings to my current account as i wouldn't have fees because my account would be over 3,000. A bank discouraging me from saving? I dont have a high income and the payments are bugging me.

nlgbbbblth

Overdrafts are repayable on demand.

The balance should fluctuate to credit for at least 30 days per year.
They are generally reviewed on an annual basis.

If the terms and conditions are not adhered to then the bank may decide not to renew them.
GOOD - The bank offers you a loan over a set period to repay the overdraft.

BAD - The bank withdraws the overdraft immediately or on a phased basis over a number of months [the reductions will always be much greater than the equivalent loan repayment].

The BAD scenario often happens when the customer refuses the GOOD option.

Banks will look at the bigger picture - they will often tolerate hardcore overdrafts if they're small [relative to the overall debt] and loan repayments are up to date. For personal customers who are constantly in the red they will not be so flexible.

BuffyBot

Thread > 2 years old. Please don't create zombies..