PTSB to End Free Banking in September

JTMan · 17-07-2015 6:49pm #1

PTSB will end free banking in September 2015. New customers only effected, that is new customers who join after a date yet to be announced ...

http://www.independent.ie/business/personal-finance/latest-news/ptsb-set-to-abandon-free-banking-for-new-customers-31380725.html

Existing Permanent TSB customers will retain the deal, but it will no longer be available to people who want to sign up for it from the autumn.
The account has no transaction charges as long as €1,500 is lodged to it each month, making it the best value in the market.

A spokesman for the bank said: "Our free current account offer remains, but its operation is reviewed on an ongoing basis. We have no current plans to change it."

However, this newspaper understands that the bank will say in September that the free banking offer will end for new customers a few weeks after the announcement.

Will there be a rush to open a PTSB current account before September?

km79 · 17-07-2015 7:13pm

phew!

omerin · 17-07-2015 7:18pm

With an announcement like that, it's only a matter of time that it will apply to all. My money is on it happening in H1 2016.
I think the credit union might be an option to get your pay transferred in, some have cards aswell

JTMan · 17-07-2015 7:24pm

omerin wrote: »

With an announcement like that, it's only a matter of time that it will apply to all. My money is on it happening in H1 2016.

All? Not likely. Children under 18, college students, graduates, those over 60/66 are likely to still get free banking for some time. Also, those with certain legacy products such as the PTSB Switch product are likely to continue to get free banking.

It is possible that those other legacy products such as PTSB Everyday and their existing PTSB current account product might be subject to fees at a later date. However, it is probably a while away if it happens.

omerin wrote: »

I think the credit union might be an option to get your pay transferred in, some have cards aswell

No credit unions offer the full range of banking services yet. Even if and when they do, there will be fees attached.

omerin · 17-07-2015 7:32pm

JTMan wrote: »

All? Not likely. Children under 18, college students, graduates, those over 60/66 are likely to still get free banking for some time. Also, those with certain legacy products such as the PTSB Switch product are likely to continue to get free banking.

It is possible that those other legacy products such as PTSB Everyday and their existing PTSB current account product might be subject to fees at a later date. However, it is probably a while away if it happens.

No credit unions offer the full range of banking services yet. Even if and when they do, there will be fees attached.

Sorry, should have been clearer, I wasn't talking about spongers :pac:
Having said that, I think they are struggling and wouldn't put it past them to do it en masse.
The credit Union I am in Cork can accept wage transfers and has a atm machine. They are online, offer fund transfers, but I appreciate not all can or do.

JTMan · 17-07-2015 7:37pm

No credit union offers a full banking service. One would probably define a full banking service as offering credit cards, debit cards, ATM access, direct debits, standing orders, online beneficiary set ups and online payments, international payments, converting foreign currency payments, SEPA compliant, issuing an IBAN and BIC and holding full banking license.

Tar.Aldarion · 17-07-2015 7:43pm

omerin wrote: »

With an announcement like that, it's only a matter of time that it will apply to all. My money is on it happening in H1 2016.
I think the credit union might be an option to get your pay transferred in, some have cards aswell

They are historically good at leaving you with deals, I've had free banking since I was a child, no 1500 deposit and so on.

Delta2113 · 17-07-2015 11:48pm

"Will there be a rush to open a PTSB current account before September?"

No - I'm sick of telling people to switch and stop wasting money, - in one ear and out the other.

Delta2113 · 22-06-2023 12:25pm

https://www.independent.ie/business/personal-finance/permanent-tsb-set-to-end-fee-free-banking-for-47000-of-its-customers/a1401668856.html

PTSB just couldn't leave us alone could they. No date as yet - no other information other than this article.

AngryLips · 22-06-2023 12:42pm

https://www.boards.ie/discussion/comment/120748574#Comment_120748574

I have free banking with them but it's not tied to any minimum balance criteria so I wonder if I'm affected. To be honest, they really need to launch their long-delayed new app as a way of giving people a reason to stay. There's other options in and around the €6 per month space that may have a more compelling product.

Delta2113 · 22-06-2023 12:46pm

The switch current account I think is remaining FREE. PTSB Current Account 4 and 3 other legacy products will now face charges and not be able to use the 2,500 minimum balance to avoid fee.

AngryLips · 22-06-2023 2:51pm

https://www.boards.ie/discussion/comment/120748656#Comment_120748656

I guess the writing is on the wall for Switch current accounts too

downtheroad · 22-06-2023 3:02pm

Explore account with PTSB gives you back up to €5 per month, at 10cent per card transaction. Its very straightforward to get banking for just €1 per month with them.

feelings · 22-06-2023 3:02pm

Revolut will increase their market share further...

Jim2007 · 22-06-2023 3:22pm

https://www.boards.ie/discussion/comment/120749487#Comment_120749487

Two banks have exited the market in Ireland due to a lack of profitability and literally dozens have over the last decade in Europe. And Revolt just scarped a profit and it was chump change in banking terms. The last thing they need is a bigger share of a market made up of free loaders!

The banks are in a race to the bottom, they took a very profitable business and turned it in to a commodity industry and we are not following a well trodden path - consolidation and elimination competition and once that is completed we'll start paying through the nose for services.

feelings · 22-06-2023 3:28pm

https://www.boards.ie/discussion/comment/120749561#Comment_120749561

And Revolut have already started to address the lack of income. Increasing fees, expanding products etc. They already have a 2 million customer base and growing.

AngryLips · 22-06-2023 4:43pm

https://www.boards.ie/discussion/comment/120749590#Comment_120749590

So becoming just as unappealing as the existing banks...

Cromuli · 03-07-2023 8:01pm

I have been banking with PTSB for about twenty years and have had my wages paid into the PTSB account for the last fourteen years. I have an outstanding loan with PTSB and rarely if ever have missed direct debit payments previously with no direct debit missed on the current loan for the last twelve months. I wanted to book holiday flights online for myself and my partner for a long haul holiday which amounted to about €2600. When I tried to process the e-tickets online, I received a message saying that the bank did not authorize it. As I had arranged my work holiday days off around the planned holiday I was anxious to secure the booking. There was just seven seats left on the flight.

I rang Open24 and I was told that there is a transaction limit on the account of €2500 and the best thing to do was get the company's IBAN and do the booking that way. The travel company is based in Singapore and it is an online transaction so there is no way I can contact them to do something like this.

I ended up booking one flight and prayed that the other seats were not taken up the day after, I was lucky as there was three seats left and I was able to secure the second seat twenty four hours later (about €1300). When I was off work I went into a PTSB branch and queried why I could not use my own wages in my current account to book flights. I was told that due to "scamming activity" across the board that there has been a limit set on accounts and it is being looked into.

I was told that the way around this was to secure a credit card and I could transfer money to my current account at will. I went about this online and got a call a few days later saying the credit card application had been successful with a credit limit of €3.5K and I would receive the card within 3 to 5 working days. I received another call two days later stating the underwriter had declined the application. I do not miss direct debits and am working fulltime, paying tax for years.

My monthly wage when it was paid into my current account when I tried to book the flights exceeded the cost of the flights but I was prevented from purchasing the flights through my wage by the bank. So now I cannot use my own money to secure economy class flights let alone a single business class flight if I wanted to. The bank is essentially stopping me from spending my own money.

Jim2007 · 03-07-2023 9:02pm

https://www.boards.ie/discussion/comment/120801053#Comment_120801053

While I appreciate your annoyance, the reality is that the bank is not preventing you from spending your money, but it is requiring you to operate your accounts in accordance with the terms and conditions you signed up to. And it is your responsibility to know the terms and conditions you have agreed to follow.

As for getting a credit card, well clearly from the way you have described it you do have missing payments in the past and that will work against you when it comes to the underwriters, they are not going to cover someone with missed payments if there are other options to cover clients with a clean records. You could try applying for cards else where, perhaps a different underwriter will be more will to cover you...

While it is not an exact alternative, how about debit cards, have you got one? You could also try and use online payment services as well to help make it easier to operate.

In addition I'd suggest you apply for a copy of your CCR report so you will know what the financial institutions and underwriters see in respect of your financial status and once you have it you can come back to us for suggestions on how you go about repairing it.

Cromuli · 03-07-2023 9:39pm

https://www.boards.ie/discussion/comment/120801294#Comment_120801294

Thanks for your assistance but the money that the bank was preventing me from spending was actually in part my wage which I earned so I was indeed prevented from spending my money. This was through a debit card which I have.

Anjunadeep · 03-07-2023 9:57pm

https://www.boards.ie/discussion/comment/120748656#Comment_120748656

I have one of those Switch accounts and wondering will it manage to avoid the charges.. The chatter on askaboutmoney seems to suggest the Switch accounts wont be affected. https://www.askaboutmoney.com/threads/ptsb-ending-fee-waivers-on-legacy-current-accounts-47-000-affected.231588/page-3

Citrus_8 · 03-07-2023 11:50pm

https://www.boards.ie/discussion/comment/120801460#Comment_120801460

Jim2007 gave you an excellent advice. He's always extremely helpful and very well informed, truly, a professional in this area.

Try Avant for a credit card. I use them for any kind if online purchase. I've got it without a big hassle, just took a good few weeks. I think, you should too, if you haven't got a missed DD within a 3 or maybe 6 months' period. Can't remember how much back did they ask me for bank statements.

Regarding your wage etc. Again, bank protects themselves (as scammed clients go to bank asking for a compensation and also your own assets to make sure no one fraudulently spends your wage. Would you rather be scammed and lose 2k or, say, 5k? However, I know some bank in Europe do increase a limit temporary on request. Not sure why PTSB didn't suggest that... Either way, credit card is your answer. Please keep your sentiments, emotions and everything else what's not related to numbers, money and risk, to yourself - it's just a reality, nothing personal.

Strumms · 04-07-2023 2:29am

There really seems zero ability to not pay to have and use a bank account.

I opened my first bank current account when I got my first part time job in my mid teens… I’ve never needed a loan and the particular institution I was with I got payed into, withdrew cash and lodged cash, used ATMs and used the debit card. Never gave them a cent… aside from maybe the very odd late CC payment fee… everything from staffing and services are bare bones now and tech is antiquated to the point it could be the mid 1990’s and you’ll grow a new beard regardless of your gender waiting for them to answer the phone .. The two branch’s in the same-ish Dublin suburb or adjoining ones never have more then one desk open now….despite being busy generally……another chance to grow a beard. Others in the city are downsized to smaller premises.

Looking at comparison charges sites, free banking / no charges is over unless you are over 65/66 with certain institutions…

so not just PTSB, the whole industry here is headed the same direction…..BOI have the same quarterly fee 18 euros….

people are still acquiring mortgages, car loans, graduate loans, other personal loans… they are services in addition to standard banking… traditionally the banks enabled their income through interest on loans… now it’s personal day to day banking where the grab is too.

Jim2007 · 04-07-2023 8:54am

https://www.boards.ie/discussion/comment/120801460#Comment_120801460

We can't help people who believe they should be exempt from the normal rules and provisions that apply to everyone else. You are an adult and the law assumes you are capable of acting in your own best interests, if you sign up to contracts without making yourself aware of what you are signing up to then it is on you and you should not be surprised when the other party insists you meet your obligations.

Jim2007 · 04-07-2023 9:42am

https://www.boards.ie/discussion/comment/120802084#Comment_120802084

Two bank in Ireland have exited the market as well many others in Europe - including the wipe out of Credit Suisse and pretty much all banks are reporting small profits and a few even losses by comparative measures. You can't make money by given your services away for free, we all knew that, but the expectation was that once you have the clients on the hook they will buy the extra services. That did not happen because the models were wrong and because the banks then started to compete on a cost basis for the services where they were intending to make the profits!

They have successfully turned a very profitable business into a commodity one, where no one really cares who the supplier is so long as it is free/cheap. And I expect we'll now follow the typical model for a commodity business - elimination and consolidation of the banks, followed by price rises - in a way it is the only route to follow. In the future I'd expect to see maybe 8 eight tier one banks in Europe and perhaps say twenty tier two. That is unless the EU steps in and regulates the market to make in more profitable in order to give the consumer more choice, but I doubt will happen.

Cromuli · 05-07-2023 11:38pm

https://www.boards.ie/discussion/comment/120801933#Comment_120801933

Not sure what you mean but the wage that I earn and pay tax back to the government should be mine freely to spend is all : ) thanks for the advice though : )

Cromuli · 05-07-2023 11:41pm

https://www.boards.ie/discussion/comment/120802377#Comment_120802377

Am I missing something here? Ok, let's simplify this, the bank is like a "conjun box" that I pay money to so as to keep the money paid to me safe. I have a virtual key to unlock the money and should not be prevented from spending freely the money that I earn through tax labour, simple really.

Jim2007 · 06-07-2023 12:29am

https://www.boards.ie/discussion/comment/120811412#Comment_120811412

Yes you are missing something - the terms of the contract you signed with the bank in order to obtain banking services. You failed to read the terms and familiarize yourself with the product you signed up to and were unable to book your holiday as you had intended. You furthermore failed to comply with the terms and conditions of your loan agreement and as a result were refused a credit card. Now you can learn from the experience and operate your accounts in line with the T&C to avoid such problems in the future or not, it’s up to you. As I said we can’t help someone who feels the normal rules do not apply to them, so we have come to the end of the line. Do not continue to post a long these lines and that is a mod warning.