Madam, - With effect from May 24th, AIB will remove its free banking service for customers who maintained a minimum balance of €500 in their current accounts.
AIB argue that deposit rates are historically very low. However, it conveniently omits to mention that the gap between lending and deposit rates is historically very high, which is the main source of their profits.
Furthermore, it does not propose to reinstate free banking should deposit rates rise in the future.
It seems difficult, therefore, to justify this unpopular move against its own customers. - Yours, etc.,
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