Banking Questions

What Do I need To Consider When I Am Choosing A Current Account?

• Find the current account that suits you.

• Check all of the terms and conditions.

• Use our personal current account cost comparison on www.ccpc.ie to help you.

• Ask about any fees charged by the bank.

• Don’t sign anything unless you have read and understood it.

How do you switch your bank account?

This is a step-by-step guide to switching your bank account:

1. Find the current account you want to switch to. There is a good comparison tool on the www.cccpc.ie website. This is the link.

2. Go to the new bank, and request a switching pack.

3. Advise your new bank that you want to close the account in your old bank and give the new bank a date that you want the switch to happen on. You will be asked to complete an Account Transfer Form. But if you want you can leave your old bank account open but remember you will have to pay

4. Government stamp duty on any ATM or debit cards.

5. The new bank will send the completed Account Transfer Form to your old bank.

6. If you wish to have your salary or wages paid into your new account, don’t forget to send your new bank account details to your Payroll or HR Department so that your salary will be paid to the right account.

7. If you decide to close your old account, the old bank will send a list of your direct debits and standing orders to the new bank and send a copy to you (check that the list is correct). The new bank will then arrange to set these up on your new account. The new bank will advise your direct debit originators (for example, utility company, insurance company, mortgage provider, etc.) of your new bank account details. The old bank will also cancel any standing orders and bounce any direct debits back to the originators unpaid. If there are any outstanding charges, the old bank will apply them to the account and send the balance on your old account to your new account. Finally, it will send a closing statement to you.

The switching process should take no more than 10 days.

Questions to Ask a Financial Advisor

Some questions to ask if you are meeting with a Financial Advisor or making a decision regarding your banking or investments:

1. How does this product meet my needs?

2. What are the product charges? How do they compare with similar products?

3. Are the charges ongoing or are they once-off?

4. What would happen if I missed a regular payment on this product?

5. What, if any, ongoing service can I expect from you if you receive a commission?

6. What are the main risks with this product?

7. Is my capital or any growth on my investment secure?

8. What is the minimum recommended term of the investment?

9. If I cash in my investment early, will I have to pay a penalty?

10. Will the investment affect my tax or social welfare benefits?

11. How will I find out how my investment or pension is performing?

12. Please tell me about the company providing this product as I’d like to know about their reputation and financial position.

13. Why do you deal with this company?

14. Are there any alternative firms or products that I should consider?

Issues to consider before borrowing

1. Do you need it? You may be able to save for what you want by cutting back on your spending or looking at ways to increase your income. Remember to work out how much money you have coming in and going out, so you know how much you can save/afford to borrow before considering a loan. It’s important to manage your money and you should always avoid unnecessary debt. If you decide that you do need credit, find out the following first:

2. How much can you afford? Your new budget plan will help you work out how much you can afford to repay. Consider how you will cope with future events such as higher interest rates, a drop in income, or changes to your circumstances such as having children or dealing with illness or redundancy.

3. How much you can borrow from your lender? This will depend on your income and job security, whether you have savings, your credit history, if you are borrowing on your own or with someone else and if someone will act as guarantor for you.

4. How long should you borrow for? Match the term of your loan with the purpose of the loan. For example, aim to pay back a holiday loan before your next holiday.

5. Look at the Annual percentage rate (APR). This helps you compare the cost of loans. Be careful to compare like with like, for example, loans of the same amount and term. APR will not help you compare loans of different amounts or terms. To do that, compare the cost of credit.

6. Look at the total cost of credit. This is the amount you have to pay back on top of the amount you are borrowing. It is useful for comparing costs between loans with the same amount and term but different interest rate, or the same amount and interest rate but different terms. If you are getting car finance (hire purchase or PCP) ask your provider to give you this information, so you can compare your options.

7. Look at the loan term. Try to get as short a loan term as possible, because the longer the loan, the more interest it will cost you even if the monthly repayments are lower.

8. Make sure to shop around as well as getting a quote from your own lender or credit union.