Regulator highlights growth of 'free' banking

Many people could get free banking if they examined the accounts on offer from both their own and other banks, the Financial …

Many people could get free banking if they examined the accounts on offer from both their own and other banks, the Financial Regulator said today in its latest cost survey.

The survey of current accounts found that half of the accounts surveyed offer free transactions and have no account maintenance fees.

"The increased availability of free banking is a welcome development for consumers especially since it is easier than ever to switch to a new bank," the regulator's consumer director, Mary O'Dea, said today.

However Ms O'Dea advised customers to read the small print in bank's free banking offerings.

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"People should be aware that some 'free' bank accounts have terms and conditions attached. For example, your bank might require you to keep a certain minimum amount in your account and would charge fees if your balance falls below that level. Or the account may only be free as long as you do not have an overdraft," she added.

The survey also draws attention to the availability of special current account packages for people aged 60 and over. These packages give customers free banking and may also include other benefits, such as free foreign exchange or no overdraft set-up fees.

Ms O'Dea said, "We have received queries from people as to why they do not automatically get free banking when they reach 60 years of age. With some banks, you need to request the facility."

Copies of the cost survey are available by phoning the consumer help-line on lo-call 1890 77 77 77, by visiting www.itsyourmoney.ie or by calling into the Consumer Information Centre at College Green, Dublin 2.