THE ITCH TO SWITCH: current account savings

Why switch your current account? Unlike AIB and Bank of Ireland, NIB, Permanent TSB and Ulster Bank all offer free transaction banking to more than just students and pensioners.

NIB is the only financial institution to grant free banking to all personal customers whose accounts remain in credit.

Ulster Bank customers must keep at least €500 in their current account in order to qualify, while people who bank using Permanent TSB's Loyalty account must either be mortgage customers or hold a balance of €1,000 or more in order to avoid charges.

These conditions won't prove too onerous for many current account holders.

According to the Irish Financial Services Regulatory Authority (IFSRA), which publishes cost surveys of the current account market every six months, consumers can pocket significant savings by shopping around for a current account. The potential savings vary depending on the person's routine banking habits.

For example, a consumer who makes 10 ATM/ Laser transactions and one branch transaction every month and has 10 direct debits flowing out of their account each month will pay annual transaction fees of €69.60 at AIB.

At Bank of Ireland, such a customer will be charged €70.56 under its pay-as-you-go system or €45.60 if they have selected the flat-fee option of €11.40 per quarter in exchange for 90 transactions.

Provided he or she satisfies the minimum balance requirements at all times, the cost of these transactions would be nil at NIB, Ulster Bank and Permanent TSB.

But what if this consumer is regularly overdrawn?

Assuming they are in the red for each quarterly charging period, the consumer would pay €80.80 in transaction charges at Permanent TSB, €79.40 on National Irish Bank's current account and €71.92 on Ulster Bank's current account.

But other charges the consumer needs to compare and contrast in this situation are the cost of setting up an overdraft facility fee, the interest charged on authorised and unauthorised overdrafts and the charge for failing to have sufficient funds to meet a direct debit, standing order or cheque being drawn on the account.

Further information is contained in IFSRA's survey of current account fees and charges.

This is available to download from www.itsyourmoney.ie, by calling IFSRA's consumer helpline at lo-call 1890 777 777, or from its information centre at College Green in Dublin.