Fed up with your bank? Follow these five steps to help you switch

Bank of Ireland couldn't have expected the level of opprobrium which greeted its proposal on Wednesday to impose restrictions on over-the-counter transactions. Key to its proposition was to ban withdrawals of less than € 700 from the counter, with customers also required to make small cheque lodgements at ATMs rather than at the counter.

While the level of customer anxiety its proposal caused led the bank to soften - somewhat - the measures yesterday evening, the move has likely left many customers agrieved. But what can they do?

Well, switching is always an option, but evidence shows we’re notoriously bad at switching bank accounts; a report from the Central Bank earlier this week published a report showing that just 5,400 of the country’s five million current account holders switched banks in the first half of the year.

Yes, the choice is limited, with just six current account providers (AIB, BOI, EBS, KBC, Ulster Bank and Permanent TSB) on the market today. This compares with a staggering 14 institutions who signed up for the Irish Banking Federation’s (IBF) switching code back in 2006.

However, it doesn’t excuse our lassitude, given that switching has become a lot more straight forward in recent years, thanks to a voluntary code operated by members of the Banking and Payments Federation and the publication, in 2010, of the Central Bank’s Code of Conduct on the Switching of Current Accounts with Credit Institutions.

So, if you want to send a message to your bank, here are five steps to help you achieve just that.

1. Pick a new bank

Yes, the easy answer is to complain that ‘they’re all the same’, but their are differences in the current offerings offerings out there. For example, a number of years ago Bank of Ireland increased the eligible age for its free banking ’golden years’ account from 60 to 66. Others however, such as AIB, still allow the over 60s to enjoy maintenance and transaction free banking, as well as other incentives such as commission free foreign exchange.

And if you’re younger and are looking for free banking, Permanent TSB has one of the best offers - if you deposit at least € 1,500 a month into your account (your pay-cheque for example) you will qualify for free banking, thus saving yourself a quarterly transaction fee of € 12.

To help you make up your mind, take a look at a comparison of current accounts compiled by the Competition and Consumer Protection Commission.

2. Open an account

The second step in switching is to open an account with your new bank. Typically, to do this, you will need to call in to your bank with the following ID: photo ID such as a a valid passport, a current driving licence or an EU National Identity Card; example of proof of address.

3. Get ready to switch

Ask your new bank for a switching pack. This will take you through the process, step by step and explains what to expect along the way, who is responsible for what, how long it will take and exactly what you have to do. As part of this process you will have to fill out a "Transfer of Account Form" (see sample from Ulster Bank here). This form allows your old bank to send details of direct debits and standing orders to the new bank and relevant creditors so that they can be set up on the new account. Your new bank should have your account up and running within 10 working days once they have approved your application.

4. Choose a date to switch

You will then need to tell your new bank what date you wish to make the switch. You’re usually advised to do so during a quiet period in your account, when there may not be direct debit/standing order activity etc.

While the bank will take care of money going out of your account, ensuring easy - you hope - handover with respect to electricity and broadband bills etc, you will have to notify people who pay you money, ahead of this switching date. In practice, this will usually mean your employer; tenants if you’re a landlord; social welfare if you receive payments such as child benefit et etc.

5. Make the switch

Seven days ahead of your switching date your old bank will be ready for the switch. According to EBS, this means:

- Sending a list of all your active direct debits and standing orders to your new bank and a copy to you for checking

- Informing your direct debit originators of your new account details

- Refunding stamp duty, where due, on unused cheques which you have returned

- Adding any charges/interest due to your account

- Transfering the balance on your account to your new account

- Closing your old account

- Send you a closing statement for your old account

Once your new bank gets this information, it will set up similar instructions on your new account, and will order bank cards etc. The switch will be completed, and will be up and running, normally within 10 days of your switching date.

Remember, you don’t have to close your original current account - you can keep this open also, but it means that you will incur charges on both accounts, as well as stamp duty if you keep two sets of cards/cheque books.