AIB to start charging 1 cent per contactless transactions - abandoned

Sarenco

Frequent Poster
Messages
6,345
Good article on ways to reduce bank charges -
 

Mrs Vimes

Frequent Poster
Messages
1,000
I'd've liked their email to include what the last quarter would have cost if their charges were implemented.
It seems expensive compared to the last 15+ years of free banking.
I haven't paid fees to AIB in years as I have kept my balance above €2500 at all times but each quarter they debit and credit the fees that would have been due so I can see what I'm saving.
I also pay for pretty well everything by credit card and then pay that off before it's due so I have fewer transactions on my current account than if I was using debit card for everything (makes it easier to ensure I don't go under €2500 balance).
I should start getting the cashback soon too as I have already spent almost €5000 on credit card since they brought that in.
 

RedOnion

Frequent Poster
Messages
4,597
In a press release this morning, AIB have suspended the introduction of fees for customers maintaining a balance over 2,500
(The previous announcement was only in relation to contactless charges).

" AIB has suspended the planned introduction of maintenance and transactions fees for customers
who keep a minimum balance of €2,500 per fee quarter. Customers who received correspondence
from the bank can disregard the changes to fees and charges advised."
 

NoRegretsCoyote

Frequent Poster
Messages
1,567
It's a poor move by them to cave in. The value to a consumer from each contactless transaction is easily >1c.

They'll just cross-subsidise this from other services, mainly retail lending.
 

losttheplot

Frequent Poster
Messages
381
What do people typically pay per quarter for bank charges. I've 2 current accounts and the charges were about €6 and €9. I rarely use ATM or debit card, mostly tap with credit card.
I ask as I came across a Twitter thread complaining banks were still charging during a crisis. Most replies were slating the banks and how they were robbing people and giving examples of how much the banks had robbed them. Some of them quoting €70 a quarter for charges. Alot of money if you're struggling, but how do you get bank charges that high.
 

twofor1

Frequent Poster
Messages
1,388
What do people typically pay per quarter for bank charges.
€40 went out of my AIB current account on Monday for bank charges for this quarter and came straight back in again as I keep the minimum €2.5K balance.

I never paid much attention to charges as I don’t pay them, if I lose the free banking I will be a lot more vigilant.
 

Brendan Burgess

Founder
Messages
41,449
Some of them quoting €70 a quarter for charges.
I have a busy enough account and it amounts to €25 per quarter - which I get back as I have an AIB mortgage.

I don't know how they get to €70 unless they are still writing cheques, cashing cheques or lodging cash.

It could be a business account.

But it could also be overdraft interest.

Brendan
 

twofor1

Frequent Poster
Messages
1,388
I never paid much attention to charges as I don’t pay them, if I lose the free banking I will be a lot more vigilant.
Wow I just looked at our annual fees statement for the year ending earlier this month.

There were the 4 quarterly charges of €4.50.
There were over 500 contactless payments which were free anyway.
Over 260 debit card purchases.
Over 130 direct debits.
Over 80 sepa credits.
Over 50 atm withdrawals.
Over 100 other charges, phone / internet, electronic transfers, lodgements etc.
We don’t have a cheque book or overdraft.
Total for the year that was taken and credited back with free banking, just over €150.
 

losttheplot

Frequent Poster
Messages
381
I have a busy enough account and it amounts to €25 per quarter - which I get back as I have an AIB mortgage.

I don't know how they get to €70 unless they are still writing cheques, cashing cheques or lodging cash.

It could be a business account.

But it could also be overdraft interest.

Brendan
Didn't get the impression from Twitter that they were business accounts. Probably multiple withdrawals of small amounts. I remember one friend way back who used to withdraw money from the ATM and then go into the bank and lodge it to his savings account.
 

NoRegretsCoyote

Frequent Poster
Messages
1,567
Didn't get the impression from Twitter that they were business accounts. Probably multiple withdrawals of small amounts.
I think a lot of people make small cash withdrawals as a kind of spending discipline device.

I'm not sure why they should pay the same as people who make fewer-but-larger withdrawals.
 

elcato

Moderator
Messages
3,475
I'd say it was probably one person who clearly does not understand how finance works. Much better just to call Pearse Doherty and let him get great publicity shouting about the 'childer' :rolleyes:
 

Brendan Burgess

Founder
Messages
41,449
Here are the main AIB fees

4403



€18 - There were the 4 quarterly charges of €4.50.
There were over 500 contactless payments which were free anyway.
€52 Over 260 debit card purchases.
€26 Over 130 direct debits.
€16 Over 80 sepa credits.
€18 Over 50 atm withdrawals.
€20 Over 100 other charges, phone / internet, electronic transfers, lodgements etc.
€150

Seems a reasonable charge for such a busy account.

Brendan
 

losttheplot

Frequent Poster
Messages
381
I've a Revolut account also. I can transfer €100 using Google pay which is linked to my AIB visa card. So you can essentially withdraw cash from visa without out any cash fees. I wonder does the Google pay transaction get the platinum cash back too.
 

tomdublin

Frequent Poster
Messages
88
Here are the main AIB fees

View attachment 4403


€18 - There were the 4 quarterly charges of €4.50.
There were over 500 contactless payments which were free anyway.
€52 Over 260 debit card purchases.
€26 Over 130 direct debits.
€16 Over 80 sepa credits.
€18 Over 50 atm withdrawals.
€20 Over 100 other charges, phone / internet, electronic transfers, lodgements etc.
€150

Seems a reasonable charge for such a busy account.

Brendan
150 per year equates to around 300 Euro pre-tax income (in the higher income tax bracket), i.e. 3,000 Euro every ten years or 12,000 Euro during an average working life. Why spend 12,000 Euro on something you could easily get for free? If you really don't need, want or care about the money giving it to charity instead of AIB might be a better option.
 

Brendan Burgess

Founder
Messages
41,449
The thing is you don't get stuff for free.

You end up paying for it some other way. Or maybe someone else pays for it.

A lot of people switched to ptsb for "free" banking. They then took out mortgages with ptsb as most people apply to their own bank first. Every year, they are paying multiple times the fees savings in higher mortgage interest.

Brendan
 

ATC110

Frequent Poster
Messages
215
AIB drops plans for contactless payment fees but maintaining an account balance of €2,500 will not save you from fees from November -
I think all banks will introduce negative interest rates in the near future, which will also provide an opportunity for the government in the form of a deposit levy similar to the pension fund levy
 
Top