Irish Life & Permanent has introduced free banking as it restructures in personal banking operations to take advantage of customer disillusionment elsewhere.
The group's Permanent TSB's initiative is timed to follow the decision by the State's largest bank, AIB, to end free banking for its customers. From this morning, new customers will automatically be able to avail of charge-free banking on current accounts. Existing customers are also eligible but will have to make known their preference.
Under the proposal, any customer who maintains an average credit balance of €1,000 in their current account over each three-month period will qualify. The averaging element means customers will be able to dip below the €1,000 threshold at certain times as long as the average balance in any given quarter is €1,000 or more.
The bank calculates the initiative will generate savings of €100 a year on charges for customers.
Permanent TSB head of marketing Mr Niall O'Grady said the bank had been "inundated" in recent weeks with calls from customers of rival banks which are ending free banking arrangements. "We have no doubt that those customers will respond positively to this initiative," he said.
Previously Permanent TSB offered free banking only to students and elderly people, those with deposits or mortgages in excess of €100,000 and those who had purchased certain other bank products.
