Introducing StandardBankAccounts in association with
What is a standard bank account? A standard bank account is a new type of account designed to help you manage your money. If you have been put off opening a bank account in the past for any reason such as by the cost - or if you thought that using a bank account was not for you then this could be for you. From July 2012, these accounts are being tested by three banks in three locations around the country details are on page 18. If you open one of these accounts you may be asked to give your feedback on how you found opening and using the account. You do not have to give feedback but your views will be very helpful in improving how the account works. The standard bank account is different to other bank accounts as it has no fees or charges for normal day-to-day services and there is no Government stamp duty on ATM or debit cards. Jargon Throughout this guide you will see words highlighted in blue. This means that there is an explanation in the Jargon Buster on page 14. 1
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What services have no charges? Normal, day-to-day services have no cost with this account. These include: Taking out money at an ATM (cash machine). Using a debit card in a shop to pay for something and also for getting cash-back in a shop from your account. Transferring money to another bank account. Transferring money to pay a bill (like your electricity or heating). Setting up and changing a standing order (this is where you have a regular amount coming out of your account and going into a savings account or to pay bills). Putting money into the account (making a lodgement). Getting a regular statement that tells you what is in your account and what you have taken out. Using phone banking and internet banking (of course there may be phone call or data charges). Can I get one? The Standard Bank Account is currently available in three banks in New Ross, Tallaght and Tullamore. You can open one if you can say yes to the following: You have no existing current account or have not had an active account in the past three years; and You are 18 years of age or over. 3
Are there any income limits? If your only income going into the account is payments put into your account by the Department of Social Protection you will be able to keep a Standard Bank Account; and If the money going into your account - apart from any social welfare payments that might be paid into your account by the Department of Social Protection, is usually under 4,500 in a quarter (a three-month period) you will be able to use and keep a Standard Bank Account. What services might cost money? There are charges for some services that you may or may not use. These include: Taking out money using an ATM in a country where the Euro is not the currency, for example in the UK. Using your debit card in a country where the Euro is not the currency. Transferring money to a country where the Euro is not the currency. If you have lost your debit card and need a replacement the first replacement is free. If you do lose your card you must tell your bank immediately. You can still lodge and withdraw money in a bank branch with your account number, sort code and photo ID. It will take 3-5 week days to get a replacement card (ask your bank when your replacement card will be ready). If you have lost a statement and want to get another copy but you can avoid this in most cases by registering for e-statements if you have access to the internet or by printing a statement inbranch. Buying a bank draft. 4
When you open a Standard Bank Account you will be given a full list of services that you will not be charged for and a full list of services that you will be charged for. If you have any questions your bank will be able to help you. Is a standard bank account right for me? A standard bank account makes it easy for you to manage your money. You can open an account in your own name, or with someone else, such as your partner (if they also qualify), so you can manage your household bills. The account has features and services that will help you keep track of your money: You can use your debit card to get your money out of an ATM/ cash machine 24-hours a day. You can pay for things in shops and Post Offices with your debit card. This means you don t have to carry money around with you. You can also get cash-back from your account in many shops or petrol stations when you use your debit card to pay for something. You can pay bills like your electricity or gas using your Standard Bank Account. You can set up a standing order so a set amount is paid from your account to your electricity or gas company (or to a savings account) every week/month. Or you can use your card to pay bills in Post Offices. You can save money by setting up a standing order from your standard bank account into a savings account. This will help you save up for expensive times of the year, like back to school, Christmas or holidays. Your wages and some types of social welfare payments (including child benefit and the state pension) can be paid straight into your bank account. 5
You can lodge cash (for example, your Jobseekers payment) and cheques into your account and use the money once it has cleared (cheques can take up to 5 working days to clear). You can use phone banking and internet banking to check how much money you have, pay bills, transfer money and top up your mobile phone. You can buy things on-line using your debit card, for example, CDs, concert tickets or flights. Your money is safe and you do not have to keep too much cash in your home/pocket. You will always be able to get your money as the account has what is called a buffer limit of up to 20. This means that if you have 5 in your account, you will still be able to take money out of an ATM or use your debit card to buy something in a shop. If you dip into the buffer it will automatically be paid back to the bank the next time money goes into your account. What is not included in a Standard Bank Account? Direct debits are not included with a Standard Bank Account. You cannot get an overdraft on a Standard Bank Account. You cannot get a cheque book with a Standard Bank Account. Direct Debits A direct debit is where you give a company permission to take money from your account usually for regular bills or payments. If you need to set up direct debits this account may not be for you as they are not included. If you still want a Standard Bank Account there are other ways to pay most bills (by using a standing order, by transferring money from your account or in cash). If you only want an account where you can save money and you don t want payment options included with the Standard Bank Account then there are deposit accounts available in banks, credit unions and via An Post. 6
5 step guide to opening a Standard Bank Account 7
Step 1: Check that you qualify. You are 18 years of age or over. You cannot have a current account with a bank already, unless you have not used it at all for three years. If you had a bank account with someone else (known as a joint account) that was used in the last three years you cannot open a Standard Bank Account - even if you did not use it yourself. If you are unsure where you stand, ask your bank to look at this for you. To keep your account your income must be under the limit (see page 13). Step 2: Be able to prove your identity and your address. This is a legal requirement for anyone to open a bank account in Ireland. You will need to bring to the bank: To prove your identity, bring a passport or driver s licence if you have one of them. A National Age Card (issued by An Garda Síochána) may also be used but there are alternatives. To prove your address, a current utility bill (such as a gas, electricity, telephone or mobile phone bill). If you do not have a bill in your name you can also use a current house or car 8
insurance certificate or renewal notice or a current local authority document. Don t worry if you do not have these documents. You may still open an account if you can provide a different type of proof of your identity and your address. Examples of other proofs of identity and address are provided on pages 19-20. Step 3: Go to your local branch of AIB, Bank of Ireland or permanent tsb. This account is being piloted in the following places: New Ross Tallaght Tullamore Contact details for branches in these areas are listed on page 18 of this guide. Remember to bring proof of your identity and address with you. When you visit the bank, speak to a customer service person. When opening your account you will be asked for some personal details. Here are some examples: 9
Title (Mr, Mrs, Ms) Your name Your date of birth Your home address Home phone number Mobile phone number E-mail address if you have one Your income from Social Welfare Your income from employment (before and after tax) Fill this in and bring it with you if it helps. Step 4: Start using your new account! Getting your wages or social welfare payments paid into your account Talk to your employer or the Department of Social Protection about having your money paid into your Standard Bank Account. You will need to give them your bank account number and sort code (this identifies which branch you are with). Your bank will give you these. Some Social Welfare payments (such as Jobseekers) cannot currently be paid directly into your account but you can lodge the money yourself if you want. 10
Getting your card and setting up phone banking or internet banking Your bank will send you your card (for the ATM and buying things in shops/on-line) and a Personal Identification Number (PIN) to use with your card. Your PIN is private and you should never give it to anyone. Your bank will also tell you how you can set up phone banking and internet banking and you will be given a registration number and a private code to access these securely. It is important that you keep these numbers in a safe place. If you are unsure or uncomfortable using ATM machines, internet or phone banking or any other feature of the Standard Bank Account just ask for someone in your branch to take you through it. Once you have used things once you will be more familiar with them and it will get easier. Making payments using your account To start paying bills regularly, you can set up standing orders to put away or pay a certain amount every week or every month. Use the sample table below to help you work out how much you should pay or put aside every week. An example using an electricity bill is done for you. To know how much you have spent on bills over the year it is useful to add them all up. The table overleaf may help you to do this. 11
What I owed last year 600 (add up all the bills) What I expect to be paying this year 750 (include any arrears) How much I should pay per week to 15 cover my expected bills and arrears (if any) (divide 750 by 52) Electricity Gas/heat Telephone Your bank will tell you how to set up and change a standing order. If the company you pay bills to will not accept a standing order then you can still use one to help you manage your bills just put the money into a savings account and take it out when your bill arrives. With a standing order you are in control. You can set up, change or stop a standing order at any time and you can decide when the money is paid. But your bank may need a few days to make changes so make sure you check first. You may not have to visit the bank to do this you can use phone banking or internet banking so make sure you register for these and check if you can manage your standing orders this way. 12
Step 5: Once you are up and running Check how much money you have in your account (your balance) regularly and keep a close eye on what s coming in and going out. This will help you stay in control. If you are unsure of how to use any of the account features or you get something in the post that is not clear and understandable you can contact your bank (use the phone banking service or go into your branch) to ask for help. Good luck! What happens if my income increases above the limit in the future? If the total amount of money (apart from direct social welfare payments) going into your account is more than 4,500 in a quarter (three month period) twice in a row, then your bank will contact you to change your account to a normal fee paying current account. At this point you will have at least two months to decide to accept the new account, shop around for an alternative account (there are comparison tables on current account fees at www.nca.ie) or close your account. If you have any questions about how this will work talk to your bank who will explain it to you. What can I do if I have a problem opening a Standard Bank Account? If you have a problem opening an account, you should contact the branch where you applied for the Standard Bank Account and explain your problem. 13
Jargon Buster Some key words and phrases explained: Active Account An active account is an account which has had at least one customer transaction in the last three years. ATM It stands for automated teller machine also known as a cash machine or hole-in-the-wall. If you have an ATM or debit card you can use any machine to take out cash and you can also order statements, read your account balance and get access to other information about your bank account at the machines offered by your own bank. Bank Draft This is a type of cheque that you buy in your bank where the payment is guaranteed to be available by the bank. It is a secure way of sending money where cash is inconvenient or not secure. Balance The total amount of money you have in your account at any time. 14
It will be shown on your posted statement or you can check at one of your own bank s ATMs, on-line or by phone if you have registered for phone or internet banking. Buffer zone limit A small amount of credit available on the account so you can get small amounts of cash out of your account, for example, at an ATM. If you need to use the buffer it will be automatically repaid the next time money goes into your account. Cash back You can use your debit card to get cash back from some shops when purchasing goods and services. Just purchase something first and then ask to receive cash back. Many shops in Ireland offer up to 100 cash back at the checkout when you use your debit card to pay for purchases. They will give you the cash if there is enough money in your Standard Bank Account. Debit Card A debit card is a plastic card you get from your bank allowing you to take money from your account. Debit cards are also ATM cards so you can use them to take money out at an ATM or pay for something electronically. This means that you can pay for things on-line and in shops using your PIN. A debit card is different to a credit card because you can only withdraw the money that is available to you in your account and cannot spend any more money than you have in your account. When you use your debit card it may take a couple of days for it to show up on your account so it is important that you keep track of when you use your debit card and keep receipts so that you can check what you have spent. Electronic Funds Transfers (EFT) EFT is a simple, secure and reliable service which enables you to make payments by electronic transfer directly into a bank 15
account. It is mainly used for paying wages and benefits. You will need to arrange this with your employer or where you receive your benefits. Internet Banking Internet Banking is a safe and secure way to access your bank account 24 hours a day, 365 days a year using the internet. It allows you to carry out routine banking transactions such as checking your balance, bill payments, ordering a bank account statement, mobile phone credit top up or transferring money between accounts. Customers who wish to use this service must register for it with their bank. For further information concerning Internet Banking and how to use it talk to your bank branch. Overdraft An overdraft is like a small loan attached to a current account. Your bank must normally approve an overdraft in advance, and this is automatically repaid the next time money goes into your account. You may be charged interest for using your approved overdraft. You cannot get an overdraft on a Standard Bank Account. Phone Banking This is a telephone banking service offered to personal customers by the various banks once you register for the service. Phone Banking gives customers the ability to carry out the same transactions as Internet Banking over the phone day or night. You can register for this service and Internet Banking at the same time. PIN Stands for personal identification number. It is a four digit number that is private to you and you need it to take money out of an ATM or use your card to pay for something in a shop. Entering your pin approves a payment from your account. Never give your PIN to anyone else! 16
Standing Order A way of regularly paying bills or putting money aside from your bank account into another account. You get the account number and sort code of the other account. You then give this to your bank and the bank sets up your order to pay the amount you decide from your account on the dates you want. You must tell your bank in good time if the amount or the dates of payment need to change. Statement A detailed list of all payments in and out of your account over a period of time. You will be posted a statement each month. Transfer The movement of money from one account to another. 17
Your local branch details New Ross Branches Bank Address Phone 57/58 South Street 051 421 319 051 421 258 12 The Quay 051 421 267 17 South Street 051 422 060 Ask for Kay Tallaght Branches Tullamore Branches Old Bawn Road 01 451 28 11 Priorsgate 01 451 53 99 Main Road 8 Old Bawn Road 01 452 41 22 Ask for Kristina 5/6 William Street 057 932 15 14 Bridge Street, Tullamore & 057 932 14 07 Church St., Clara 057 933 11 64 O Connor Square, 057 935 11 88 Ask for Patrice 18
Other items of identification you may be able to use to open a Standard Bank Account To open an account you need to prove your identity and your address. You will need to bring one document to prove your identity and one to prove your address. Some of the documents that you can bring with you when opening an account are listed here. If you have any questions about what you will need to open your account you can talk to your bank. You may be able to use current versions of the following documents to prove your name, address and date of birth: To prove your identity Passport Driving licence A National Age Card (issued by An Garda Síochána) ML-10 Form issued by An Garda Síochána National Immigration Bureau Card or foreign documentation (e.g. National ID card) Travel Pass with photograph 19
To prove your address Current utility bills (including those printed from the internet) Current household/motor insurance certificate and renewal notice Current local authority document e.g. refuse collection bill, water charge bill (including those printed from the internet) Current statement of account from a credit or financial institution, or credit/debit card statements (including those printed from the internet) Official documentation/cards issued by the Revenue Commissioners and addressed to the individual Official documentation issued by the Department of Social Protection and addressed to the individual Official letters issued to the person from Government Departments If you are listed on the electoral register (including the on-line version) or in a local telephone directory or available street directory, this can be checked and may be accepted as proof of your address. 20
More information If you have questions about the Standard Bank Account then you can talk to any of the banks that are offering the account. Other organisations also support this initiative including those listed below: Organisation One Family Contact details National help-line 1890 66 22 12 MABS Help-line (Money Advice and Budgeting Service) 0761 07 2000 helpline@mabs.ie National Consumer Agency Consumer Help-line 1890 432 432 Society of St Vincent de Paul 01 8386990 21
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Produced by the Financial Inclusion Working Group