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Friday, May 17, 2024

Fee Increase Shock: PTSB Customers Affected Severely

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In a recent development that has taken many Permanent TSB customers by surprise, a significant fee increase on their current accounts has left them facing unexpected financial strain.

With nearly half a million individuals affected, the rise in monthly maintenance fees on the Explore account has raised concerns and left customers wondering about the implications for their finances.

The sudden announcement of this fee adjustment, along with modifications to the debit card cashback programme, has left customers questioning the reasons behind these changes and the impact they will have on their banking experience.

It is crucial to delve deeper into the underlying factors driving these decisions and understand the potential consequences for customers’ financial well-being.

Fee Increase on Current Account

The Explore current account at Permanent TSB is set to experience a fee increase, affecting nearly 500,000 customers. The monthly maintenance fee for the Explore account will rise from €6 to €8, resulting in customers having to pay an additional €24 per year.

The fee increase is expected to take effect between the beginning of April and the end of July, with customers receiving a notification letter two months prior to the changes.

In addition to the fee increase, there will also be changes to the debit card cashback scheme. Customers will now receive 5p per transaction, down from the previous 10p.

The fee increase is attributed to higher costs and the need to update IT systems, as the bank has recently invested €150m in IT infrastructure.

This fee increase is the first in five years for current accounts at Permanent TSB.

Changes to Debit Card Cashback have been made.

As the fee increase on the Explore current account at Permanent TSB comes into effect, customers will also notice changes to the debit card cashback scheme.

Previously, customers could receive up to €5 each month through cashback for debit card transactions. However, starting in April, the cashback payment per transaction will decrease from 10c to 5c. This means that customers will earn less cashback for their debit card transactions.

Cashback can be earned through in-store or online transactions, as well as Apple Pay or Google Pay.

In addition to cashback, customers can also earn savings or cashback rewards by paying bills through their account or making mortgage repayments.

These changes to the debit card cashback scheme are part of the overall fee increase on the Explore current account.

Reason for Fee Increase:

What prompted the fee increase for Permanent TSB customers on the Explore current account?

The fee increase is driven by higher costs and the need to update the bank’s IT systems. Permanent TSB has recently invested €150 million in its IT infrastructure and launched a new banking app.

This fee hike is the first increase in fees on current accounts in five years, indicating the bank’s ongoing commitment to investing in its current account offering. The bank aims to enhance its services by providing a new app and a unique fraud protection service.

Whilst the fee increase may be unwelcome news for customers, it is necessary for the bank to keep up with rising costs and provide improved technology and services to its customers.

Previous Changes to Current Account Fees -> Previous Amendments to Current Account Charges

During a previous change to current account fees, Permanent TSB ended a waiver on fees for older accounts in June. Long-standing customers who had previously avoided fees by maintaining a credit of £2,500 in their account were no longer eligible for the waiver. As a result, customers with older accounts were forced to either pay £18 per quarter or switch to the Explore account, which is an alternative option to avoid fees.

This change impacted a significant number of customers who had relied on the fee waiver for many years. The removal of the waiver signaled a shift in the bank’s fee structure and has now been followed by the recent fee hike on the Explore current account, further burdening Permanent TSB customers.

Impact on Customers and Services

The removal of the fee waiver on older accounts and the subsequent fee increase on the Explore current account have had a significant impact on Permanent TSB customers and the services they rely on.

With almost 500,000 people affected by the fee increase, customers will now have to pay an additional £21 per year due to an increase in the monthly maintenance fee from £4.50 to £6.

However, it is important to note that PTSB does not charge fees for day-to-day transactions or contactless payments. Customers can also minimize the impact of the maintenance fee through cashback and other rewards.

It is worth mentioning that maintenance fees do not apply to certain account types such as Basic Payment Account, Student and Teen Accounts, or qualifying Jubilee customers.

The bank will notify customers about the relevant changes that will apply to their account.

Summary

In conclusion, Permanent TSB’s decision to increase monthly maintenance fees on the Explore current account and decrease the cashback payment per transaction has caused concern among its customers. The bank justifies these changes as a response to higher costs and the need to update their IT systems.

Whilst this fee adjustment marks the first in five years, it highlights the bank’s commitment to improving its current account offerings. Customers will be impacted by the higher fees and reduced cashback benefits.

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Aiden
Aiden
Aiden is a skilled writer who has found his calling as a journalist 2 years ago. With a passion for storytelling and a keen eye for detail, he has quickly made a name for himself in the industry. Aiden's articles are well-written and informative, and he takes great pride in his work. He has a knack for finding the most interesting angles on any story, and his writing is always engaging and thought-provoking. In his free time, Aiden enjoys reading, hiking, and spending time with his family.

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