AIB set to waive fees for home loan payers
Published 11/02/2016 | 02:30
AIB is set to announce that it will waive banking fees on current accounts for its existing mortgage customers as long as they pay their home loan by direct debit.
The move comes months after the state-owned bank said it would not charge current account fees for new mortgage customers who open a current account and make payments by direct debit.
It is expected to benefit around 90,000 customers and could see them saving up to €100 a year each.
Customers are due to get letters next week, telling them about the new move to waive maintenance and transactions fees.
The 'no-fees' benefit is now being extended to existing mortgage customers after being made available to new home mortgage customers in September of last year.
The new offer does not apply to EBS mortgage customers who have an AIB current account. But EBS interest rates are slightly lower than the AIB ones.
AIB was one of the few banks here to respond to Michael Noonan's last July deadline to reduce variable rates.
It has made three cuts to its standard variable rate and loan-to-value (LTV) mortgage rates for its owner-occupier customers over the last 16 months.
The bank said the savings on current accounts and the three mortgage rate cuts would save a couple with a €250,000 mortgage over 30 years around €33,000 in repayments over the lifetime of the mortgage.
AIB's head of mortgage business, Ken Burke, said: "This benefit is positive news for our home mortgage customers and a further example of AIB's commitment to support our customers throughout their mortgage lifetime. We are offering both new and existing customers real, long-term value if they have a mortgage with AIB.''
Current accounts are becoming a new battleground in the war to win customers.
KBC Bank offers a discount of 0.2pc on mortgage rates for those who take out a current account with it and use it as their main payment account.
Banks responded to the financial crash by imposing fees for the use of current accounts.