Overdraft facility fee

esperanza

I've just looked at my bank statement and I was charged an overdraft facility fee of 25 euro. I have a current student bank account with Bank of ireland.
I have a loan/overdraft out and am paying this back monthly; I didn't know that there was another 25 euro to pay for overdraft facility. Is this correct?

Borzoi

esperanza wrote:

I've just looked at my bank statement and I was charged an overdraft facility fee of 25 euro. I have a current student bank account with Bank of ireland.
I have a loan/overdraft out and am paying this back monthly; I didn't know that there was another 25 euro to pay for overdraft facility. Is this correct?

Not sure for a 'student' account but the rest of us mortals have to pay this. It's an annual rip off BTW for the privilage :rolleyes:

esperanza

Do all banks charge this overdraft facility fee?

is_that_so

Yes they do, as a one off annual charge.

Tazz T

Permanent TSB overdraft facility is FREE.

esperanza

Tazz T wrote:

Permanent TSB overdraft facility is FREE.

Thanks for that. The only thing is that Permanent TSB don't offer student accounts, or do they?

CCOVICH

esperanza wrote:

Thanks for that. The only thing is that Permanent TSB don't offer student accounts, or do they?

It shouldn't really matter as you wan't pay charges on their 'Switcher' account anyway. But I guess Student accounts attract a lower overdraft interest rate, whereas you would pay normal rates with ptsb.

mikemac

I've a graduate a/c with AIB and supposed to get free banking for 18 months.

When I queried the €25 overdraft facility fee, I was told that students and graduates still have to pay. It's an annual fee and students are not exempt as they are for other fees such as currency exchange fees.

Brendan552004

Permanent TSB charge a 25 euro fee to annually review an overdraft.

Tazz T

The PTSB Switch account was advertised with a FREE overdraft facility when I took it out. I have the literature at home and I'll be pretty annoyed if they try to charge me 25 euro for the FREE overdraft facility.

eth0_

is_that_so wrote:

Yes they do, as a one off annual charge.

I took out an overdraft with AIB a few months back and was charged 25 euro..i asked them to increase it this week and got charged 25 again!

Think it would have been cheaper to take out the cash on my credit card.

nlgbbbblth

Normally the overdraft set up fee is €25, annual renewal is €12.70 but it varies from bank to bank.

All these charges have been approved by the Director of Consumer Affairs.

It's amazing how people begrudge paying ANY form of bank charges but have no problem handing over €5 for a pint etc, €15 iinto a nightclub etc

I was charged over €300 to consult an Architect for five minutes - now that's a rip-off.

BuffyBot

It's amazing how people begrudge paying ANY form of bank charges

Well no, that's not completely true. It doesn't cost the bank anyway near €25 to set up an overdraft. Reasonable bank charges people probably wouldn't object to. However, having worked for a bank, €2.50 is probably more to the point in these cases.

Amazing how some banks in the UK are overdraft set-up charge free. Wonder how much less work it takes them to set them up...

nlgbbbblth

BuffyBot wrote:

Well no, that's not completely true. It doesn't cost the bank anyway near €25 to set up an overdraft.

Some require more work than others. May need approval from bank's credit dept thereby needing a lending application etc - prior to the CCA letter being sent.

BuffyBot wrote:

Reasonable bank charges people probably wouldn't object to.

Look at the number of people here posting complaints about paying quarterly transaction charges and saying they are 'going to move banks'.

BuffyBot wrote:

Amazing how some banks in the UK are overdraft set-up charge free. Wonder how much less work it takes them to set them up...

Have you seen the fees UK banks charge for returning cheques / direct debits unpaid or if your account exceeds your overdraft limit?

Irish bank: €12.70 if a direct debit is returned unpaid
UK equivalent of the same bank: £38 for the same thing.

BuffyBot

nlgbbbblth wrote:

Some require more work than others. May need approval from bank's credit dept thereby needing a lending application etc - prior to the CCA letter being sent.

Mmm...and yet, I'm going to go out on a limb in say that in my experience that hardly equates to anything near €25 a pop.

Look at the number of people here posting complaints about paying quarterly transaction charges and saying they are 'going to move banks'.

Yes, because they feel (and in some cases quite rightly) that the charges are pretty insane. However, if the charges were reasonable, many would not change.

Have you seen the fees UK banks charge for returning cheques / direct debits unpaid or if your account exceeds your overdraft limit?

Irish bank: €12.70 if a direct debit is returned unpaid
UK equivalent of the same bank: £38 for the same thing.

Yup, I have. And..?

bounty

imo the overdraft fee is justified

you wouldn't believe the amount of deadbeats out there who screw up their overdrafts and spend months paying it back a few euro at a time, if at all...

28064212

Personally I would have thought that an overdraft fee was less about administration costs, more about dissuading people from jumping into them without consideration. Look at the amount of problems people get themselves into by using credit cards and overdrafts as long-term borrowing methods. If you could get it for free, it would encourage far more 'joe soaps' to just jump into it without consideration.

With regard to the original post, most student accounts that are free fees are talking about non-optional charges. Or at least very common ones like ATM withdrawals.

A Dub in Glasgo

This something totally alien to me. I have had free banking here in the UK for the last 12 years. No account maintenance fees, no overdraft fees, no credit/debit card fees, no atm fees, no cheque fees, no standing order/direct debit fees.

Looks like I am in for a shock when I decide to go back and live in Ireland.