AIB has made big play of a change it plans on the fees it charges personal customers. In fact, all it is doing is mimicking its rival Bank of Ireland. And in doing so, it has provided some odd messaging to its customers.

Since 2020, AIB has been charging customers a quarterly fee of €4.50 alongside various smaller charges for different services – a 20 cent charge for every debit-card point-of-sale transaction or direct debit, for instance, or 35 cent every time to use an ATM to lodge or withdraw money. Insisting on talking to a staff member at the counter would cost you 39 cent a time.

The headline charge looked competitive against the €6 monthly charge levied by Bank of Ireland.

But was it? Maybe not.

Announcing the change, which comes into force on July 1st, the bank said it would be cheaper for a majority of current account holders.

“These changes are in keeping with AIB’s commitment to put our customers first, and are being introduced on foot of customer research and feedback, and will result in a reduction of c12 per cent in customer fees on average. The majority of customers who pay fees will pay less than they pay now,” the bank said.

That implicit admission that the bank has been charging uncompetitive fees for the past six years seems an odd way to phrase a “customer win”. But will you really make those savings?

At present, AIB customers pay fees of €18 per annum and then choose what other fees they pay by their usage of direct debits, ATMs and other services.

Under the new regime, they will pay €72 every year.

If you assume that people are paying 10 direct debits a month from their account – which would cover most recurring household utility bills, insurance and the likes – they could expect to pay €24 a year under the old system.

One ATM withdrawal a week – generous in a world where the banks keep telling us people are less inclined to use cash – would cost €18.20 over a year. That’s a total of €60.20.

Ahh yes, but what about the savings on the 20 cent charge every time you use your debit card in a store or a pub?

What about it? You only need to put your card in a reader for a weekly family shop and if you want to fill the car’s tank. Otherwise, everyone simply taps and goes, and those contactless transactions are still free of charge.

So will the average accountholder really save 12 per cent? Or anything at all? Remains to be seen.