BOI Bank charges - Is it worth keeping the 3000 in my Account

Dapos

So I saw my first quarterly bill for charges today from May to August and it was 36 euro! Mainly on direct debit and ATM use. This means I'm probably looking at over 100 euro in bank charges a year.

So I'm thinking with the increase in DIRT would I not be better off to remove 3000 from my savings and leave it in my current account the avoid all these charges. The savings in charges seem to outweigh the interest I would make on 3000 in a savings account.

Just wondering what do people think? Am I missing something here? I can't see any fixed quarter bank fee option.

Pablo Sanchez

Taking into account the DIRT rise, you would need to find an account paying you 6% in order to earn €100 interest on your €3000.

But be careful, if your balance drops below the 3k at any point, fees will apply for the full quarter.

AlmightyCushion

Just move to PTSB and avoid fees altogether.

JTMan

Dapos wrote: »

So I'm thinking with the increase in DIRT would I not be better off to remove 3000 from my savings and leave it in my current account the avoid all these charges. The savings in charges seem to outweigh the interest I would make on 3000 in a savings account. .

You would need to keep over 3,000 EUR in the account to ensure there is a buffer there to ensure that you never, even once, drop below 3,000 EUR. There is an opportunity cost attached to this.

As stated above, simply switch to PTSB.

dnme

Tying up 3k of "your" precious money just to keep BOI at bay is not a good idea. That 3k could be earning you interest in a state savings scheme or on deposit with Nationwide UK (currently 4%), I'm aware of the DIRT issues but even still. Not only that, but that 3k is equity and can act as leverage. Say you need to borrow, or just build a good relationship with an institution. Having that 3k on deposit with them will help. Also, BOI recently introduced a new charge that is imposed on all customers regardless of whether they are maintaining a 3k balance. I think it's €5 per customer or something.

With PTSB, you only need to lodge 1500 per month. Once lodged you can then withdraw it. It's ideal for anyone who has their salary lodged. They don't require that you maintain that balance, just lodge.

It's your money. Walk!! It's so important that we all start to take action albeit in the restricted and ever decreasing arena available to us. Switching current accounts is the biggest sufferer of customer inertia there is and the banks know this. We should be and need to be, far more proactive than we are, especially the Irish for some reason. As a recent switcher, the process was simple, PTSB did all the work.

Sarn

I would have to agree with the above. There is absolutely no reason to stay with BOI at this stage. I finally moved to PTSB a couple of months ago as I refused to pay the new BOI €5 a quarter maintenance charge, not to mention having to juggle the €3k minimum balance to avoid fees. Now I don't have to think about it at all, plus PTSB pay 1% on balances up to €1500. Not much I know, but better than paying maintenance and quarterly charges.

Bowlardo

I bailed from bank of ireland. delighted i did. Tsb all the way