Why are Irish banks so crap compared to those in other countries

petros1980

Hard to believe Irish banks still charge fees - PTSB latest to scrap free fee offer

https://www.independent.ie/business/personal-finance/permanent-tsb-set-to-end-fee-free-banking-for-47000-of-its-customers/a1401668856.html

With interest rates so high they're making a killing from people's deposit accounts. And furthermore no Irish banks offering any decent interest on savings accounts.

In UK, fee free banking since forever, and currently can have 5.2%+ on savings accounts with Natwest and Monzo. And no bollocks like this applies to first 1k in your account or anything like that

And here in Poland you can get 10% savings account - government actually forced banks to increase rates for savers in line with their increased rates for borrowers.

Seems in Ireland bank customers really get shafted. Is it just because they know customers have no other options really beyond raisin bank etc and that most people wouldn't be bothered to look into those?

Wanderer78

sure we left them off with causing the biggest crash in history, what do we expect! ...and if you think things have changed within them....we re in desperate need for alternatives, including public banks, but shur that ll probably never happen....

petros1980

Yes, the fact that state owns share of few major banks since 2008 makes the miserable offers to customers all the worse. Espeically with their recent record profits...

Wanderer78

https://www.boards.ie/discussion/comment/120743680#Comment_120743680

...the state may own some shares, but that doesnt mean they truly have much if any power, or will even to make changes, that may benefit citizens! this is never gonna change, as this is deeply imbedded within the financial system, we probably have to create our own alternatives, but that also may never happen, so....

Unflushable Turd

https://www.boards.ie/discussion/comment/120743646#Comment_120743646

Irish banks are still feeling the effects of that and the ECB has put extra conditions on them, so they are expected to hold more reserves than banks in other countries.

that’s why every foreign owned bank has fucked off.

Wanderer78

https://www.boards.ie/discussion/comment/120744255#Comment_120744255

...so why havent we tried to move away from this model, and towards other, possible more citizen centric models, such as public banking etc! our banking system is never going to change, its problems are deeply imbedded, its next to impossible to deal with systemic fraud and failures, profit centric models and approaches etc etc....its never going to change, ever!

amacca

They should be squeezed a bit more as should the insurance industry imo

SuperBowserWorld

Why can't I put my savings into an EU bank, like the 10% offer here ... ? Wouldn't that wake up the "Irish" banks ?? Isn't it supposed to be a free market ?

My God, you have to hand it to other EU countries governments. Ours are really asleep and useless at times. They'd give away our neutrality and sell us down the swanny before actually doing things for the citizens.

https://www.boards.ie/discussion/2058301780/why-are-irish-banks-so-crap-compared-to-those-in-other-countries

Wanderer78

https://www.boards.ie/discussion/comment/120744326#Comment_120744326

...this is what 'financialisation' is ultimately about, you make these sectors sacrosanct!

WheelieKing

Irish peoples laid back "ah sur it be grand" attitude to everything and failure to stand up for themselves see's this sort of behavior continue.

Wanderer78

https://www.boards.ie/discussion/comment/120744379#Comment_120744379

...great to see countries such as greece standing up, definitely sorted their situation!

There's nothing preventing other European banks from establishing here. They are entitled to do so, the state can't stop them.

They choose not to.

CPTM

It could get worse. They're awash with savings and have little or no competition. And even less competition now that UB and Kbc are gone. They've no incentives to become better or offer better services

Geuze

https://www.boards.ie/discussion/comment/120744342#Comment_120744342

You can.

SuperBowserWorld

https://www.boards.ie/discussion/comment/120744492#Comment_120744492

Lightbulb moment

😳

So, what are the downsides ? They have similar bank guarantees.

Geuze

Here is a list of Best Buys for deposits:

https://www.askaboutmoney.com/threads/savings-best-buys.90481/

Rates are frequently updated. Information last changed: 13 June 2023.

Highest Term Deposit Rates

3 Months - BFF via Raisin Bank - 3.00%

6 Months - BFF via Raisin Bank - 3.50%

1 Year - Banco Português de Gestão via Raisin Bank - 3.60%

2 Years - Banco Português de Gestão via Raisin Bank - 3.60%

3 Years - Banco Português de Gestão via Raisin Bank - 3.60%

4 Years - Younited via Raisin Bank - 3.45%

5 Years - Younited via Raisin Bank - 3.50%

https://www.boards.ie/discussion/comment/120744510#Comment_120744510

Yeah, guaranteed to 100k per bank.

You still need to pay DIRT.

BattleCorp

https://www.boards.ie/discussion/comment/120744424#Comment_120744424

Because it's not profitable for them to do so. If it was profitable for them, they'd be here. Instead we have them jumping ship because the cost of doing business here is too high.

https://www.boards.ie/discussion/comment/120745036#Comment_120745036

Exactly.

And this is also the case for the mortgage market.

silliussoddius

https://www.boards.ie/discussion/comment/120744424#Comment_120744424

Sshh. Doesn’t go with the oppression narrative.

Strumms

The frontline services are utter garbage.

bank I was with originally since 1996, since 2015/16, any branch you go into in the afternoon generally has one single frontline person dealing with in person transactions/queries. All blinds pulled down on the other desks and one single person. You generally need to wait an eternity.

they used to have a big flagship branch in central Dublin and you would go in on a Wednesday afternoon, 4/5 staff serving.

they canned that, moved a kilometre away, to a fûcking tiny ex commercial premises that had three windows / desks that were often occupied by a single staff member in the afternoon…. Place the size of a small corner shop…im just looking again online , not an exaggeration… I’ve been Qing 20-25 minutes at times…

CPTM

https://www.boards.ie/discussion/comment/120744510#Comment_120744510

Logistics around opening the account, language barriers, lack of ability to do it online in some cases. Just some of the things that just about tip people into the "Maybe someday but can't be bothered" category.

I've a savings account in Spain though so it definitely is possible.

Sconsey

https://www.boards.ie/discussion/comment/120744510#Comment_120744510

Yeah similar bank guarantees in other European countries. I don't think there is any legal impidement from you opening a bank account in any other EU country. But it could be a pain to do so, you may need to go face-to-face to a bank branch to open the account, it is likely that they will only deal with you in their native language. You would have to work out the tax liability yourself. It is doable but unless you go through a broker like Raisin or someone, it could be painful, and the brokers only work with a limited number of banks*.

*they're not really banks as we use the term.

ZookeeperDub

https://www.boards.ie/discussion/comment/120743646#Comment_120743646

In regards to the crash

Ireland invested 4.7b into Bank of Ireland, so far returns are 5.9Bn

21bn went into AIB, last count it was 11bn I think back from AIB with Ireland still owning 57%. Now of course those numbers could be wrong but that was based on a quick search

The main issue in Ireland as you say is competition with Ulster Bank and KBC jumping out recently which has left Ireland very short of banking options. The only political party I am aware of that supports a Public Bank is Green Party, Maybe I am wrong on this.

Others bank and have come & gone with no political party willing to understand why and in fact some major parties only interested in muddying the market more to help non paying customers etc. Don't expect that to change anytime soon and the loss of KBC was a massive blow which was wiped under the carpet very quickly

BattleCorp

https://www.boards.ie/discussion/comment/120745727#Comment_120745727

We'd a cashless bank in our town for about a year before they closed it. What the fcuk good is a cashless bank?

I went into it one day to take out €3k that I wanted to pay for something. They told me they don't do cash any more. They told me to use the machine outside on the wall. That had a limit of €700 per day. Not much use to me that day.

ZookeeperDub

https://www.boards.ie/discussion/comment/120748154#Comment_120748154

Most interactions in banks are no longer cash. you will find a lot are applications/update of information. Opening new services etc.

A cashless bank means the insurance etc is a lot less than a bank carrying cash, plus you need additional security etc. Even if you go into a cash bank today can you withdraw 3k without calling forward and requesting that sort of cash?

KBC was able to work for years in Ireland with no branch. Everything was done over the phone etc. Even the hubs they had couldn't take in cash, you could lodge a cheque I think but that was it. The movement is to stop carrying around large quantities of cash, if buying sell online the best option is revolut or similar. AIB/BOI as far as I know have got approval to create an equivalent to these services.

BattleCorp

https://www.boards.ie/discussion/comment/120748172#Comment_120748172

Agreed on the less people availing of cash services but it's still an inconvenience when the cash facility is taken away.

The problem is that I didn't sign up for a cashless bank. It was a service when I signed up and that's what I wanted. I wanted to be able to go into the bank and take out my cash when I needed it. The bank took that service away so I closed my account with them.

Yes, you can go into a bank that provides cash services and withdraw €3k cash if you have it in your account. There might be a very rare occasion where the bank doesn't have that much cash in the drawer but they always keep cash on hand in the vault for the likes of the ATMs etc.

On the KBC thing, that's what people signed up for so I'm ok with that. Can't complain that KBC don't do cash when they never did.

I don't think the movement is to stop people carrying around large quantities of cash, it's to push everything online where everything can be monitored.

ZookeeperDub

https://www.boards.ie/discussion/comment/120748198#Comment_120748198

I don't disagree it is a inconvenience but I was just explaining why banks have cashless banks....more and more banks are going to move to less cash. Especially with the success of Revolut etc

Also from a government point of view, cash is just used a lot to dodge tax. Getting rid of it means that is impossible so don't expect the government to stop it, just slow it down

FishOnABike

https://www.boards.ie/discussion/comment/120745063#Comment_120745063

This. I send money to a family member studying in the UK.

If I used one of the main Irish banks it would cost me approx €25 in fees (international bank transaction fee of €15, currency exchange fee, receiving bank £7.50 fee).

Using revolut it cost me 25c plus exchange rate, which is better than the main Irish banks rate. If I transfer it to their Revolut account rather than UK bank account there are no transaction fees, just currency exchange rate.

No prizes for guessing which I use. Our banks are price gouging due to lack of competition.

ZookeeperDub

https://www.boards.ie/discussion/comment/120748422#Comment_120748422

If you raise this with the banks they will say yes it costs X but then they are forced by the government and the public to have cash banks etc.

If people really want no frills banks like revolut then expect more and more closure of branch's and more moving towards cashless.

ZookeeperDub

https://www.boards.ie/discussion/comment/120748623#Comment_120748623

I had to go as changing over Mortgage etc from KBC. I don't expect to go again for a long time.

The cash services is banks are becoming less and less required and in reality they are just a place for forms etc

Del2005

https://www.boards.ie/discussion/comment/120744379#Comment_120744379

It's our "justice system" where you don't have to repay debts that's the problem. If banks could get assets used as collateral on loans we'd have better rates and more options. We don't kick people out of their homes who don't pay their mortgages and if you don't repay a loan you get a lift to prison, a meal then a taxi home. Why would any company want to enter our market?

Kermit.de.frog

The reason foreign banks won't touch this market is really simple.

Irish people are generally not held liable for debts particularly in the housing market where it's a pain in the hole trying to evict someone who doesn't pay their mortgage, for example.

No foreign bank is touching this place. This is an Irish societal problem which seems to have public support - so it's populism.

As usual with populism generally everyone loses but the biggest losers are anyone with a bank account or doing business with an Irish bank.

If you want competition, better terms and lower fees like every other advanced country tell TDs looking for your vote to fix the broken banking and judicial system.