Permanent TSB waives new account fees

Permanent TSB has abolished regular transaction charges for all customers using its new current account in a drive to significantly increase its share of the market.

The move means TSB is the first Irish bank to offer free transactions for all customers, regardless of whether their accounts are in credit or overdrawn.

The bank claimed yesterday that customers could expect to save an average of more than €100 a year in bank fees.

Permanent TSB hopes to add 60,000 new current account customers during 2005 and has established a "switching team" to smooth the switching process for new customers.

The launch of the new account is timed to coincide with the introduction of a new voluntary code of practice on switching accounts, the Irish Bankers' Federation (IBF) code, which becomes effective on January 31st and is designed to make it easier and less time-consuming for customers to move accounts.

An interim report by the Competition Authority, published last November, found that this market was uncompetitive and that consumers were "locked in" to their existing bank.

Earlier this week, Ulster Bank welcomed the introduction of the code and announced that it would waive the charges for setting up standing orders and direct debits on new accounts for the first three months.

Mr Brian McConnell, chief executive, Permanent TSB, said yesterday that the new code was "a watershed" for the industry.

"I believe that it will encourage customers to take a more careful look at what different banks are offering their customers," he said.

The new Permanent TSB account has no quarterly maintenance fee; no withdrawal or lodgement fees; no laser or ATM fees, and no set-up fees for standing orders and direct debits.

Up to now, the bank has only waived transaction charges and a quarterly banking fee of €12 on current accountswhere customers had a balance of at least €1,000 in their account or had their mortgage at the bank.

National Irish Bank (NIB) and Ulster Bank both offer free banking services, however, certain restrictions apply.