AIB increases bank charges again

AIB is increasing its charges for some of its commonly used services again. From the end of August, AIB customers will be charged 35 cent every time they use an ATM machine, an increase of 75 per cent on the current charge of 20 cent.

The cost of paper and staff-assisted transactions, including manual withdrawals, lodgements and cheques, will increase from 30 cent to 39 cent

The charges associated with foreign currency drafts are to go up from €4.44 to €7 while a new charge of €4.50 will be applied to anyone setting up or cancelling a standing order.

The cost of a domestic euro bank draft - which currently stands at €1.90 - will climb to €3.

AIB’s business customers are also to be hit with a raft of new and higher charges. The bank’s business customers will see their ATM charges go from 15 cent to 35 cent, an increase of more than 130 per cent.

AIB has said is has had no choice but to impose the new charges and claims that they will add an average of 75 cent to the charges of personal account holders per month. The bank said business account holders will have to pay an average of €1.90 per month more.

It also said about 40 per cent of its customers, including those aged over 60, student and graduate account holders and customers who maintain a balance of €2,500 or more in their current accounts each quarter, would continue to get free banking.

AIB said it will extend the period in which it is providing contactless payments free of charge until February 2014..

The bank’s director of products Fergus Murphy accepted the charges would be “unwelcome” but the company had “no option but to ensure [it] is covering costs on the services it provides”.

AIB's move comes just day after Bank of Ireland increased many of its own charges.

It is to impose a new €5 fee every quarter on most customers, even those who may have qualified for free banking by keeping at least €3,000 in their accounts.

It also increased the cost of lodging a cheque at in one of its branches by 12 cent to 40 cent and has introduced a new fee of 20 cent on anyone writing a cheque.

Ulster Bank has also introduced new bank charges in recent weeks.