Goodbody Stockbrokers have today reported that AIB is set to waive banking fees on current accounts for existing mortgage holders who pay by direct debit.
They say the move is anticipated to benefit c.90,000 customers to the tune of up to €100 per year.
The no fees benefit was made available to new customers last year, but is now being extended to existing mortgage holders (though not EBS mortgage holders who are already getting a lower interest rate).
According to Goodbody Stockbrokers, "The move by AIB is likely to cost it as much as €9m in fees foregone, highlighting that competition doesn’t always come in reducing prices, but in income foregone as well.
"At a headline level, it may hint that further rate moves are off the agenda for the time being, but it adds further competition to the mortgage market in any case."
Source: www.businessworld.ie
