Opening and Switching a Bank Account

Information

You will find that some form of bank account is necessary if you are living and working in Ireland. Having a bank account allows you to save money, to make financial transactions, to receive your pay etc.

Financial service providers offer many different accounts. For example, banks, credit unions, building societies and An Post all provide a range of accounts. There are, generally, two categories of account; a current account and a deposit account:

• A current account allows you to make day-to-day transactions (i.e., paying a bill, receiving your salary straight to the account, making transactions etc.). These are offered only by banks and building societies
• A deposit account allows you to build up savings and you may earn interest on this money. These are offered by most financial services firms – banks, building societies and credit unions

You should shop around to find the most suitable type of account for your needs. When you open an account try to assess what your needs are and how you need to store and access your money. There is information on the Financial Regulator's website which tells you what to look out for when opening a bank account.

Opening a bank account

When you open a current account you should be aware of the services that you can have on the account. You should also be aware of the fees and charges associated with the account. When you open a deposit account you should know what percentage of your money you may earn in interest on your savings. You should also find out how you can access your money should you need it.

There are other ways of saving money other than using deposit accounts. The Financial Regulator's Independent consumer guide to savings and investments (pdf) provides information on saving for the short and long term.

A financial institution is obliged to establish your identity and verify your address before you can open a bank account.

Switching your account

You may want to change your account for any of the following reasons:

• Your circumstances may have changed and you may have different needs from an account.
• You may have found an account that offers you a better deal.
• You may be unhappy with the level of service that your bank is providing.
• You may be unhappy with the fees your bank is charging.

If any of the above situations apply you can choose to switch accounts. The process for switching accounts between providers may seem to be complicated but there is help available.

The Financial Regulator undertakes surveys of costs in financial institutions and has published a Personal Current Account Cost Survey. This may help you to establish if you can get a better deal from another financial service provider. If you do decide to change service providers, The Irish Bankers Federation has issued a IBF Code of Practice for Account Switching (pdf). This code of practice guides banks and customers in the process to successfully transfer accounts. Under this Code your new bank should take no longer than ten days to set up your account. In addition, your new bank should take no longer than seven days to transfer all direct debits, standing orders etc. from your old account.

Rules

Before you open an account with a financial service provider, they are obliged to establish your identity and verify your address. This requirement is set down in anti-money laundering legislation the Criminal Justice Act 1994.

Money laundering is the process where the source of illegally obtained money is disguised. Under the law, the minimum requirements for opening an account are to establish a true name and date of birth for the applicant and to establish the applicant's address.

You cannot use the same document as proof of both your identity and your address These are minimum requirements and it is at the discretion of the bank to look for further information.

You can prove your identity with any of the following: 

• A valid passport 
• A current Irish driving licence 
• A National Age Card (issued by An Garda Siochana) 
• An identification form with a photograph signed by a member of An Garda Siochana 
• Documents issued by Government departments showing your name.

Government documents must be verified by a statement from a person in a position of responsibility such as a solicitor, accountant, doctor, community employment scheme supervisor or social worker. That person must also come to the bank themselves with proof of their own identity.

The following is a list of documents that provide evidence of your address:

• A current utility bill (such as a gas, electricity or telephone or mobile phone bill) 
• A current car or home insurance policy that shows your address 
• a document issued by a Government department that shows your address 
• A list of your tax credits 
• A current balancing statement or a C2 certificate from the Revenue Commissioners
• A social insurance document that shows your address
• A letter from your employer or licensed employment agency stating that you have recently arrived in Ireland and have started work but cannot yet provide evidence of your Irish address (you will have to provide evidence of your address at a later date).

If you open an account that pays interest on your money, you also need to supply your PPS (personal public service number). If you do not have a PPS number a bank may accept a copy of your birth certificate.