What happens to the AIB Current Account's maintenance fee when the account balance reach €0?

Agondonter

Hello dear Boards.IE community.

I have one very simple question:

What happens to the AIB Current Account's maintenance fee (€10~€11 quarterly) when the account balance reach €0? Is the unpaid fees going to accumulate over time, if the balance keep staying at €0?

I couldn't find the answer on the "AIB Current Account Fee FAQs" page.

I apologize for posting that question here, but the relevant AIB forum is not working:

https://www.boards.ie/discussion/2056673315/bank-of-ireland-kbc-or-aib-query-talk-to-them-directly

Thank you very much!

I'm feeling very uncomfortable, asking that question some AIB representative over the phone.

landofthetree

Where your Account has become inactive, we may close it by giving you at least two months’ notice. 

We will normally consider that an Account has become inactive if the balance is less than €100 and you have not used it for 12 months.

In the terms and conditions.

I would argue this is actually against EU law. You actually have a right to a bank account and just because you're poor doesn't mean they have a right to shut your account down.

28064212

AIB's maintenance fee is €4.50 per quarter. I see no mention of a minimum balance requirement, so they will likely charge it regardless of the current balance. It's possible there will be additional fees attached to allowing your account to go into a negative balance - read the T&Cs that you agreed to.

Also note that the "inactive account" clause is entirely at AIB's discretion - "...we may close it...". They aren't required to automatically close it.

If you don't intend to use the account, close it. If you need a long-term no-fee account, open one that doesn't have a regular maintenance fee attached.

What happens is that the bank will write to you telling you that your account has been inactive and is racking up fees. They'll ask you to contact them by X if you want to keep it, otherwise they'll close it.

https://www.boards.ie/discussion/comment/118377570#Comment_118377570

They’ll take the payment and leave you overdrawn, close the account if you don’t clear the negative balance, perhaps will seek it back (unlikely, it’s not worth the effort for a couple quid).

and if you try to open another account they’ll need you to pay off what’s owed first.

i have an old AIB account, which is closed, with an OD balance of like €80. They sent a few reminders and that’s about the long and short.

you won’t have a debt collector round your house (maybe in the UK, but not for anything less than a couple thousand these guys aren’t free either) and it won’t affect your credit score. Scaremongering at best.

To summarise, nothing really happens but if you want to open an AIB account (or indeed use any AIB product) in future you’ll need to clear the old overdrawn amount first.

landofthetree

BTW if they shut you down you have a right to a basic account under EU law.

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/banking/standard_bank_account.html

Agondonter

https://www.boards.ie/discussion/comment/118375464#Comment_118375464

Thank you very much for your help!

Merry Christmas, and God bless you "Land of the free".

Jim2007

https://www.boards.ie/discussion/comment/118375464#Comment_118375464

It is not against EU law. Banks sell financial products, the basic account required to meet the directive is a different product so in closing your normal account they are not refusing to meet their obligations. If you want the basic account it’s up to you to apply for one.

Jim2007

https://www.boards.ie/discussion/2058224411/what-happens-to-the-aib-current-accounts-maintenance-fee-when-the-account-balance-reach-0

If you don’t need your account then close it down. When the balance goes to zero the bank may continue to add charges and penalties for letting the account be over drawn without authorization to your account or they may choose to close the account. And if the account is overdrawn it may cause you difficulties later. I don’t see the logic of putting yourself in such a position. Just close it.

silver2020

https://www.boards.ie/discussion/comment/118375464#Comment_118375464

Against EU law????

Seriously???

What a totally stupid comment.

Jim2007

https://www.boards.ie/discussion/comment/118376381#Comment_118376381

No it is not a totally stupid comment. The 'Directive 2014/92/EU - Payment accounts' does give people in the EU the right to a basic payment account regardless of a person's place of residence or financial situation. The only error in the comment was a misunderstanding between the banks normal products and the limited product they are required to provide to all comers.

Citrus_8

https://www.boards.ie/discussion/comment/118376971#Comment_118376971

That's why we have a basic and current account in Ireland. But I suppose bank client themselve need to initiate the change from current to basic. However, I read somewhere that, for example, AIB, won't give a basic account if you already have or had a current account. If that's true, best is to open a fee free current account with EBS bank, or similar (N26 or Revolut).

Stanley 1

https://www.boards.ie/discussion/comment/118376987#Comment_118376987

Rather think they will keep on applying fees and then charge you when the account goes into the red for unauthorised overdraft and atart charging you £20- a letter to advise you so.

Eventually they threaten you will legal action and set about getting a Judgment against you, really mess up your credit scores, then send a collection agency around to your house.

No they won't. I have personal experience of what happens.

NewbridgeIR

They're obliged to give 60 days notice when closing an account such as this.

So you have ample opportunity to get in touch and start re-using it if still required.

Agondonter

https://www.boards.ie/discussion/comment/118377500#Comment_118377500

Please, share your personal experience, if you don't mind. Thank you.