As KBC deposit accounts are sold to Bank of Ireland (subject to regulatory approval), these KBC savings accounts must be transferred to Bank of Ireland. KBC would have more than 300,000 current accounts.

Around 360,000 people have their main current account with Ulster Bank and around 300,000 deposit accounts are held with the bank.

So what should you do if you’re one of those crowds of customers looking for new accounts?

1 Check savings limits

For those hoping to transfer their savings to a credit union, many credit unions have introduced savings limits that can be as low as €10,000.

None of the Irish banks have a limit on how much personal customers can save with them – with the exception of EBS Building Society, which has set a cap of €500,000 in 2020. The €500,000 limit s applies to EBS’ general savings account, known as Instant Access. . EBS customers cannot hold more than two Instant Access accounts and the combined balance of the two accounts cannot exceed €500,000.

There are limits on the amounts that can be saved on a number of personal deposit accounts offered by AIB, Bank of Ireland, Permanent TSB (PTSB) and State Savings (An Post) – but there is currently no cap overall on the amount that can be saved with one or other of the financial institutions.

However, it would be wise not to hold more than €100,000 in savings with a single Irish institution, as this is the limit up to which you will be reimbursed under the Irish deposit guarantee scheme if the institution holding your savings goes bankrupt. (Note that the financial institution must be authorized by the Central Bank of Ireland for you to be covered by this scheme.)

For those interested in digital banking, the maximum you can currently save with Revolut is €250,000, although this is expected to drop to €100,000 in the future.

There is currently a temporary waiting list to open an account with German fintech N26 after the German regulator imposed a limit on the number of new customers who can join the bank each month.

2 Beware of negative interests

Negative interest is a charge for keeping your money on deposit with a bank. In November 2020, digital bank N26 became the first bank in the Irish market to charge individuals negative interest rates on deposits. Since then, N26 charges new customers a 0.5pc fee on deposits over €50,000 (although this fee is not charged on N26 Metal accounts).

AIB and Bank of Ireland have since taken action on negative interest rates. The Bank of Ireland charges negative interest of 0.65pc on personal deposits of €1m or more.

From the end of this month, AIB will charge negative interest of 0.75pc on personal deposits of 1 million euros or more. PTSB, State Savings, Revolut and the various credit unions do not charge negative interest on personal deposits.

3 Get free banking if you can

Move your checking account to one of the banks that offer free daily banking services to people at retirement age or close to retirement age, if you fall into that age bracket. You can get free banking services (i.e. no maintenance or transaction fees) if you are 66 or older and have a current account with AIB (Advantage Account) or PTSB (Explore Account).

With the Bank of Ireland Golden Years Account, you’re free from maintenance fees if you’re over 65 – and there are no individual fees for a range of transactions and services (such as purchases by debit card, direct debits, standing orders and cash withdrawals – as long as they are in euros), although there are a number of things you may be charged for. A post doesn’t do that.

Even if you are not retired or close to retirement, check if it is possible to get free banking services from any bank before choosing a new checking account. You can get free banking services with AIB if you pay your AIB home loan from your personal AIB current account for example. There is free banking on the EBS Money Manager account.

4 Don’t expect a better deal

None of Ireland’s financial institutions are currently considering raising interest rates on their savings accounts in an effort to induce Ulster Bank and KBC Bank customers to transfer their lump sums to them. On the contrary, Irish banks are likely to be reluctant to accept large deposits from new customers, as they are currently tasked with holding money due to negative European Central Bank (ECB) deposit rates.

Interest earned by savers on their deposit accounts could improve in the future – if the ECB raises interest rates, although that is unlikely to happen any time soon. Irish banks are unlikely to make their checking accounts cheaper.

At the moment, Irish banks have largely focused on increasing their resources so that customers leaving Ulster Bank and KBC Bank can switch accounts if they wish. There are a few changes in the pipeline – An Post, for example, will have further upgrades to its An Post Money checking account app. There have also been some small changes to current account offerings from some banks recently – Permanent TSB, for example, added the Google Pay payment app to its current account last year after adding Apple Pay in late 2020. Revolut recently launched personal loans and expects to offer a credit card later this year.

For anyone considering switching their banking to An Post, or even to one of the digital banks, be aware that neither offer mortgages. An Post has planned to offer mortgages for some time and still intends to do so. “Work is progressing well on An Post’s entry into the mortgage market,” an An Post spokesperson said. “No date has been set yet.”

5 Go online if you can

You might face queues to open a new account at a bank branch or post office so it’s faster online.

“Over the past few months, the number of customers seeking to open a new account with AIB has increased significantly,” said an AIB spokesperson. “Depending on the location of the branch, wait times for account opening appointments may vary. To support customers in locations where demand is particularly high, we have increased the number of account opening appointments available by offering weekend appointments.

Most banks allow you to open an account online. You usually need to download the institution’s banking app.

6 Beat the crowd

“Choose a new supplier as soon as possible,” said Daragh Cassidy, communications manager at bonkers.ie. “When the letters [from Ulster and KBC] out, a lot of people will start trying to switch accounts. You don’t want to be short of finding a checking account at the same time as hundreds of thousands of others
people.”

How to choose the right current account when switching from Ulster Bank to KBC?

Check the fees and charges of the checking account you plan to switch to and choose the one that best suits your day-to-day banking.

“Be aware that with some vendors it really comes down to using cash,” said Daragh Cassidy of Bonkers.ie.

For example, with An Post’s Money account, you are charged 60c for ATM cash withdrawals. The first weekly cash withdrawal at a post office is however free – subsequent withdrawals at the post office are charged 50 cents per person. Revolut’s free account allows five free cash withdrawals per month – within the limit of an overall monthly withdrawal limit of €200. After that you are charged 2% of the amount withdrawn – with a minimum fee of €1 per withdrawal.

Also pay attention to maintenance costs. The most expensive accounts for maintenance fees are Bank of Ireland’s Personal Current Account and Permanent TSB’s Explore Account – the annual maintenance fee is €72 with either account . The rewards available on PTSB’s Explore, however, can help offset account maintenance costs. With the Explore account, you get 10c back (up to €5 per month) every time you pay with your card in-store, online, with Apple Pay or Google Pay.

“PTSB’s Explore account can be good value at €6 per month in maintenance fees, as it earns you 10c each time you use your card. So you can get €5 back at the end of the month and only pay $1 a month in maintenance fees,” Cassidy said.

The charge for maintaining an account on An Post’s Money current account is €60 per annum, while the charge is €48 per annum with the cashier’s current account (currentaccount.ie). Maintenance fees on AIB’s current account are among the lowest at €18 per year, but transaction fees on this account can add up.

Make sure the checking account you switch to will give you what you need. “For example, do you need an overdraft – because EBS, An Post, Revolut and N26 don’t offer one,” Cassidy said. “For people who like the personal touch, choosing a nearby bank or financial institution can be helpful. N26 and Revolut do not have physical branches in Ireland.

How long do I have to change current account?

Ulster Bank will give customers six months’ notice to move their checking accounts and savings accounts. KBC said it would give its customers sufficient notice to do the same for their checking accounts.

What about mortgages and insurance?

Most KBC mortgages are to be transferred to the Bank of Ireland – as long as this deal gets regulatory approval.

Certain Ulster Bank mortgages (particularly performing non-tracker mortgages) are due to transfer to Permanent TSB in late 2022 or early 2023 (subject to regulatory and other approval). Arrangements for Ulster Bank follow-up mortgages – and overdue mortgages – have yet to be finalised.

If you have taken out car or home insurance through KBC or Ulster Bank, your policies will continue to be managed by the insurers themselves (Zurich in the case of KBC and Aviva for Ulster Bank)