Bank of Ireland (BofI) is going to change the
requirements for its free current accounts from the end of
February.

To avoid current account charges, BofI current
account customers will be required to have a minimum turnover of
€1,000 ($3,113) per month, and in addition, make three payments via
online or phone banking.

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If they do not make nine payments per quarter,
customers will have to maintain a minimum credit balance of €3,000
during the quarter.

The increase in fees runs contrary to an
assurance given by BofI last August that it was supporting its
customers “through these challenging times”.

Currently, the bank’s customers qualify for
free banking if they use the telephone or online banking service
three times a month or keep a minimum of €500 credit in their
account during the quarter.

A spokesperson for the bank defended the
changes and said that the majority of the bank’s customers already
meet the new criteria.

The bank offers a flat rate banking option for
€11.40 per quarter, which will cover 90 transactions and charge
€0.28 for further transactions.

Alternatively, the bank offers a pay as you go
option with which customers will have to pay €0.28 for each
transaction.

The spokesperson added that it offers a free
basic account to receive and withdraw money for those who do not
meet the new criteria.

According to Central Bank of Ireland data,
Ireland’s banks lost €69.5bn in deposits between January and
November 2010.

Between September and November alone, when
Ireland had to be bailed out by the EU and IMF, customers of
Irish-based banks withdrew €38bn in deposits.

Following its own state bail-out, BofI is 36%
owned by the Irish government

The lender is currently planning to raise
capital and will aim to attract more than €1bn from private sources
by the end of February.

In the event that BofI’s capital raising does
not raise sufficient funds, it will become the fifth Irish lender
under majority government control.

BofI’s rival Allied Irish Banks is currently
93% owned by the Irish state.