Opening a Basic bank account

Yorky

Has anyone successfully opened a basic bank account due to the impending closure of Ulster Bank?

According to AIB, you're ineligible to open a basic bank account if you already have a current account.

Does anyone know if there are exceptions to this rule?

The proposed bank account holder is on a low income and has few transactions and wants to avoid account charges.

If not, is there a low cost alternative bank to AIB? They seem to have the lowest charges out of the local banks (PTSB, BoI, Credit Union)

Etc

Double post !

Etc

I opened 2 yesterday with PTSB. I'm also an ulster bank customer. Made an appointment and was sorted in 30 minutes

Dempo1

https://www.boards.ie/discussion/2058240374/opening-a-basic-bank-account

You raise an interesting question and an impression given recently is these were a new thing, they are not and have been available for quite some time, not mention of how difficult it is to open one.

But to your point. No is the blunt answer, you "must not have an existing current account in the state" is my understanding.

The exceptions are only in relation to a Domestic abuse situations where someone has no control over an existing account. I'd have to assume evidence of this situation would be required.

You also have to to prove you have a low or limited income and the Free banking is only fir a defined period and reviewed after 12 months I believe.

Whilst I'm not doubting discretion at perhaps a local level , technically these accounts are very difficult to open with strict T&C's applicable and only 3 banks currently offer them.

Yorky

https://www.boards.ie/discussion/comment/118883517#Comment_118883517

That's interesting Etc.

Did PTSB know that you had a preexisting account?

Yorky

https://www.boards.ie/discussion/comment/118883537#Comment_118883537

This means that fees are unavoidable for someone on a low income and is only opening a new account due to the closure of their existing bank?

Dempo1

https://www.boards.ie/discussion/comment/118883751#Comment_118883751

I'm astonished previous poster was able to open 2 basic accounts. I know 2 people who tried (genuine cases of low income, Disability payments) and had to supply all sorts of information and confirm they had no existing current accounts (one had and refused, other had CU and eventually accepted).

Re Fees , the point of these accounts is there are no fees for 12 months but there is also limitations on use . But as you've experienced, T&C do apply.

Etc

https://www.boards.ie/discussion/comment/118883740#Comment_118883740

Yes, I told them I was moving from Ulsterbank, I made the appointment two weeks ago and met with one of the staff at the branch yestreday. I explained that I needed two current accounts and he set them up there and then. App verification is done via a portal in the branch. I also explained that I'll be needing savings accounts and they can be set up via the app. The staff member mentioned that they are starting to see a steady stream of UB customers coming in. I just needed ID and a utility bill.

zell12

Just open the basic account.

Explain you are closing the UB one and they are fully aware

Yorky

https://www.boards.ie/discussion/comment/118883989#Comment_118883989

Did you read the OP? They won't allow this.

And it's stated in the rules on the MABS/CIC pages

28064212

https://www.boards.ie/discussion/comment/118883951#Comment_118883951

I don't think you're talking about the same thing as the OP is. A "Basic Bank Account" is a type of current account, which has very specific legal requirements. It is not possible to open two of them. From what you're describing, you opened two standard current accounts.

@Yorky there's quite a bit of information about basic bank accounts here: https://www.citizensinformation.ie/en/money_and_tax/personal_finance/banking/standard_bank_account.html. Note especially "If you have a current account but your bank has told you that it will be closed, you can open a basic account". Also, PTSB's page explicitly mentions it: "If you are already the holder of one of these account types, you can only avail of this account where your old bank has informed you in writing that your account is in the process of being closed. You will need to give us a copy of that letter" - https://www.permanenttsb.ie/everyday-banking/current-accounts/basic-payment-account/. I assume AIB also allow it, but they'll probably need to be contacted in person

Dempo1

https://www.boards.ie/discussion/comment/118884020#Comment_118884020

Precisely, are people mixing up a Basic Current account and a Standard Current account 🤔

Dempo1

https://www.boards.ie/discussion/comment/118884047#Comment_118884047

Precisely 👍

Dempo1

https://www.boards.ie/discussion/comment/118883517#Comment_118883517

Can I assume you opened 2 standard current accounts and Not 2 Basic Current accounts as is bring discussed by OP 🤔 There is very specific eligibility criteria set out in order to open a Basic Current account ( These accounts aimed at low income & vulnerable, customers that do not have access to an existing current account in Ireland),

TuamJ

https://www.boards.ie/discussion/comment/118883751#Comment_118883751

How low is the income? I have a relative on disability, in and out of mental health hospital for a decade, living with his sister, very vulnerable, and could not get a basic account opened for him. Disability was not considered a low income 🤷‍♂️ In fact, the AIB staff said to his sister ''half the town is in receipt of a welfare payment, that's normal, try the credit union'' That's where he keeps his few bob now.

Dempo1

Just in relation to the Citizen information link, this needs to be clarified as it is not dealing with the decision of a bank to leave the irish market, its dealing with a scenario if a customers bank inform them they are closing their current account, this coukd be for a host of reasons. The link even lists UB and KBC as offering a basic current account, they do do not and have not for quite some time.

This said, Technically by its Decision to leave the Market, it does mean people have to shop around.

My sense is if a person can prove they are on a low income (this will likely require proof) has been notified of their banks closure (UB has started sending out letters, KBC have not) they could make a case to a new bank to open a basic current account. As these accounts are quite specific, I assume it would require a face face application as opposed to an online application.

Dempo1

https://www.boards.ie/discussion/comment/118887888#Comment_118887888

I am surprised by your relatives situation and I would certainly be getting advice on this . Perhaps an advocacy group that helps and represents those with a disability for example.

Whilst any bank have a right to refuse an application or permit a person open a bank account , I'd have to assume there would have to be reasonable grounds to decline an application.

But as you've pointed out and as I've tried to highlight, opening these type of accounts is very difficult and not straightforward.

The Mighty Quinn

Sorry to jump in, am I reading correct that if I have a current account with - say - Bank of Ireland, then I cannot open a current account then with say AIB

28064212

https://www.boards.ie/discussion/comment/118888029#Comment_118888029

No. This discussion is about a Basic Bank Account, which is a specific type of current account. Explanatory pages have been linked above. It does not have any bearing on any other types of current accounts

Jim2007

https://www.boards.ie/discussion/comment/118883751#Comment_118883751

The purpose of the directive is to ensure that no one is excluded from the the digital world, not to give people free or low fee accounts.

Jim2007

https://www.boards.ie/discussion/comment/118887888#Comment_118887888

The EU directive and the implementation is the individual states is intended to ensure that no one is excluded from digital financial services, nothing to do with fees, low income etc....

I know a neighbour back in Ireland and let's just say he is not a people person - he had been black listed by all the banks and the CU (among others) and it was only after this directive that he was able to open a basic account again.