Current Accounts

Highest interest rate on current accounts

Permanent TSB offers 2% on balances up to €1,500, but you need to lodge €1,500 every month.
Bank of Ireland pays 0.25% on balances up to €1,500 provided that three debits are made from the account using its 365 phone or internet banking service each quarter.
AIB pays 1% on its High Interest current account on balances up to €1,500, but only 0.25% on balances up to €1,000 on its standard current account product.
National Irish Bank pays 1% on balances for its Easy Plus current account product.
Ulster Bank does not offers interest on current accounts.

Current accounts are the most common form of bank account and allow you to manage your short-term financial needs.

There are various services provided through a current account, including:

ATM/debit card
fund transfers
direct debits
standing orders
internet and telephone banking
overdraft facilities
Cheque books (although banks are keen to start phasing them out)
Here is how you can save money on current accounts.

Interest on current accounts

It is a relatively recent thing, but greater competition between the main retail banks resulted in many banks introducing interest on current accounts.

This means that if you are lucky enough to never go overdrawn and usually have money sitting in your bank account, you can save money by earning interest.

However, since the recession began many banks have either stopped or reduced the interest rates on offer for their current accounts. Halifax used to offer by far the best rate, but unfortunately its parent company has since decided to withdraw from the Irish market.

Permanent TSB offers 2% on balances up to €1,500, but you need to lodge €1,500 every month.
Bank of Ireland pays 0.25% on balances up to €1,500 provided that three debits are made from the account using its 365 phone or internet banking service each quarter.
AIB pays 1% on its High Interest current account on balances up to €1,500, but only 0.25% on balances up to €1,000 on its standard current account product.
National Irish Bank pays 1% on balances for its Easy Plus current account product.
Ulster Bank does not offers interest on current accounts.

Free banking

Most banks offer free banking in the sense that they do not charge transaction fees if you meet certain conditions, such as making sure you keep your account in credit, or if you keep a minimum balance in your account or carry out a number of transactions using internet facilities within a period.

The main exceptions to this rule are AIB and Bank of Ireland. AIB charges a quarterly fee of €4.50, and 20c each per debit card/ATM card transaction, standing order or direct debit. The Bank of Ireland either charges, depending on which of the two types of current accounts you have, a quarterly fee of €11.40 for up to 90 transactions or 28c each per debit card/ATM card transaction, standing order or direct debit.

All of the other banks waive such charges.

Avoiding penalties

Banks will charge you penalties or ‘referral fees’ if you do not have enough money in your account to pay a transaction, a cheque, a direct debit or a standing order. These charges vary from bank to bank, so its worth checking out.

These fees add up so you should always make sure you have a lodgement in before your direct debits are due to be taken even if it means changing the dates of your direct debits.

Consider an overdraft

If you have a current account and are regularly overdrawn without an authorised overdraft you are charged interest on overdrawn balances and your direct debits/standing orders are returned unpaid resulting in referral fees and bank charges.

Over a 12 month period you will be surprised to see how much your bank charged you in fees. If you are likely to go overdrawn now and again it will save you money to arrange an overdraft. If you have an existing overdraft but go over it now and again, it may make sense to increase it slightly.

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Information correct as of the 12th July 2010

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