KBC exiting Ireland

Ulster Bank and KBC offer the 2 best paying savings accounts in Ireland at present at 0.85% and 0.55% respectively. You'll be lucky to get 0.2% after that. It makes no financial sense to move it out of these accounts before you have to.

Previous banks that have closed down here have written out to customers and given about 2 months notice for you to to close your account and move it somewhere else or provided a default option if you do nothing. Can't see it being any different with Ulster / KBC. That's the time to act and find the best place for your savings. If you wait til that window when everyone has to act to avoid the default option, you might find some level of competition for the savings. As the article above says, the banks need some level of savings to fund their loans, so there may be more interest in the savings than is currently being speculated.

Mastroianni wrote: »

the problem is that we are forced to move our funds to another bank, this obligation piss me off.
Moreover I don't even know my Payroll admin would accept to credit my salary to a bank with German IBAN (I was thinking to move all to N26) so really I don't know what to do.
How can you be so quiet?

Well KBC are closing so yeah, either pick a new bank or get shunted over to BOI. You don't actually have to do anything, at least not yet and not based on something someone from Davy said.

If as that article implies deposits will automatically be transferred then that's a good thing for the lazy consumer, means they don't have to do anything.

If, like me, you've already decided not to bank with BOI it makes no difference as I'd have to open new accounts elsewhere, so not really a big deal.

It's only a bank account at the end of the day, money goes in and money comes out. They're easy to open and have funds transferred etc.

I'm annoyed that KBC are closing because I think their current account was very good, but what can you do.

PommieBast wrote: »

Problem I have is already having a BoI account, and if my funds from Ulster were simply shunted across I would exceed the deposit guarantee limits.

A good point worthy of highlighting to the CCPC (mentioned by JTMan) that fewer banks reduces the ability of consumers to protect themselves by spreading savings across several banks.

Slutmonkey57b wrote: »

All three of those figures are effectively meaningless rates of interest unless you have more than six figures to invest, in which case your financial advisor would be screaming at you to get the money working in property or something else anyway.

Savings accounts everywhere are a place to store funds for a rainy day, not an investment at the moment because of the sub 1% rates.

Even at the current rates, interest with Ulster and KBC would probably amount to €100 for the year for a lowish 5 figure investment, accessible instantly if needed. Last year it would have been twice that when the KBC rate was well over 1%. I prefer having that for no risk and little effort than letting the big banks have it. I know others think differently, and that's fine.

btw can you confirm that AIB current account is 4.5€ quarter fees?

Sam W wrote: »

Yes it's 4.5 euro per quarter.

I don't know what others think, but to me, a fixed amount of fee isn't a big issue. What I hated is that they apply transaction fees to every single transaction. It's a pain to work out the exact amount and could add up very quickly if you are used to daily grocery/online shoppings.

for this wouldn't be a problem: just transfer some amount to N26/Revolut and pay with their debit card.
actually I'm talking with my Finance manager about N26, even after I showed him an article he still needs to check if a German bank can be allowed to enter in the payroll system

Mastroianni wrote: »

for this wouldn't be a problem: just transfer some amount to N26/Revolut and pay with their debit card.
actually I'm talking with my Finance manager about N26, even after I showed him an article he still needs to check if a German bank can be allowed to enter in the payroll system

I’ve been an N26 Metal customer for years until I needed to contact their customer service for the first time and decided to move away from them. That level of customer services is absolutely appalling especially when you have paid like 16 quids every month.

Also I have had way too many troubles trying to use their card in non-Euro zones.

Not sure about Revolut though.

Sam W wrote: »

I’ve been an N26 Metal customer for years until I needed to contact their customer service for the first time and decided to move away from them. That level of customer services is absolutely appalling especially when you have paid like 16 quids every month.

Also I have had way too many troubles trying to use their card in non-Euro zones.

Not sure about Revolut though.

what do you mean? I use N26 since 2017 and I have never had an issue. Actually they customer service is brillant, 24/7 open. which kind of issue did you get specifically? I'd to know since probably I will transfer all my funds to them...

I guess the key takeaway is that if you just want a free account to receive salary and do groceries, N26 has everything you need.

However, if you do lots of transactions (I usually have at least a hundred a month) both online and offline, the need for a reachable (and preferably face-to-face) customer service should not be overlooked. When I call KBC or AIB, they will resolve my issue within 1 call (even if I have to wait for a bit longer). When I need to make a complaint (I did two with AIB coz they screwed up my online access again and again), they will call you back promptly and they will at least try to resolve the issue on the call right away.

Some other issues I had with N26 which they never resolved before I left:
- Repaying my AIB credit cards is a hit-and-miss. Sometimes it works. Sometimes it gets rejected and I just have to do it again. It's the exact same details saved in my account. Nobody could figure out why it sometimes doesn't work.
- Physical shopping in non Euro zone often gets rejected. I embarrassed myself twice in two 3-star Michelin restaurants in Japan when my card got rejected. Ironically, I could still go to a nearby ATM to withdraw cash, so I don't understand the logic there at all.
- Everything is paper based. You just can't believe it. For a bank that branded itself a digital bank, if you need to have any formal correspondence with them, you need to fill in a bloody form and post it to a German address...

I currently have two AIB credit cards - one with 0.5% cashback for basically everything, and another one with 5% cashback on certain brands. On top of that, I use KBC for salary and standing orders/direct debits. Ironically there's no transaction fee for credit cards, other than the 30 euro stamp duty (which can be quickly covered by the cashback).

garrettod wrote: »

Anyone with a Variable Rate KBC Homeloan, should consider either fixing their interest rate, or refinancing, as those on variable rates only need to look at Bank of Ireland's rates, to see what they will be facing

Yeah I fixed for 2 years before just before the announcement, would've gone for 5 years if I had known. Will look elsewhere in 2 years time, hopefully there will be some sort of competition or better offering from BOI themselves then

Anyone on relatively short term fixed rates, should ask about the cost of breaking out of the fixed rate early.

It costs nothing to ask, and quite often, the cost is not that high - particularly when you look at what might be available as an a alternative rate.

The CCPC do a comparison across the various cards - take a look here :

https://www.ccpc.ie/consumers/money-tools/credit-card-comparisons/?gclid=CjwKCAjw7J6EBhBDEiwA5UUM2tq9dfKWRijXx2qDVJIxEL9JPxFvUYsICrfjHdf6aE0Rl6VUoBAnZBoCRvEQAvD_BwE&gclsrc=aw.ds

PHG wrote: »

Have everything with KBC when moved from UB 2 years ago.

Also have an N26 that I don't use so will probably move my salary and DDs to there.

What are the options for credit card? I have nothing on it, have it as a just in case.

Thanks,

PHG

did you get some issues or queries with your finance department about getting paid to N26?

anyway I'm wondering: when KBC will close all its activity will we get a refund for the maintenance fees or any other kind of money back?