Monday 23 October 2017

Up to 200,000 customers face bank charges after AIB moves to close Cashsave account

Charlie Weston

Charlie Weston

THOUSANDS of AIB customers face being hit with banking fees after the bailed-out bank said it was closing one of its accounts.

AIB is shutting down its Cashsave account, which will impact on about 400,000 customers.

Half of the 400,000 who have a Cashsave account use it for day-to-day banking as the account comes with a Laser card.

Those whose Cashsave accounts have debit or Laser cards, or who have direct debits set up, will now be moved to a current account.

The bank shocked consumers recently when it said that those who failed to meet strict criteria would be hit with charges and fees on their current accounts from the end of this month.

Customers who do not keep a credit balance of at least €2,500 in their current account will be hit with a quarterly charge of €4.50 and charges per transaction of between 20c and 30c. Banking sources said this was likely to mean the average householder would end up shelling out €90 in current account fees.

AIB said the move would "simplify and streamline" its account offerings.

It admitted that many of those who used the Cashsave account for everyday banking could now end up paying fees.

Those using the account for saving only, and who do not have a debit card or direct debit set up, will be moved to the bank's demand deposit account.

AIB has not allowed anyone to open a new Cashsave account since 1998. However, the interest rate on the account now pays just 0.25pc.

AIB will be writing to all customers who have a Cashsave account. It said customers did not have to take any action.

Irish Independent

Also in Business