Dear friends of Mr Banca , many of you do not know that from 1 August Banca Intesa San Paolo has decided to raise the cost of current accounts to € 10 a month.
A nasty surprise is coming right under your umbrella. Some banks including Banca Intesa San Paolo have decided that, for some of their clients, the current account management fees will rise up to € 10 a month, which means a fairly large annual cost: € 120 !
Extremely strong currents, the surprise under the umbrella
Such an increase does not really find reason to be and is justified by Banca Intesa San Paolo as a direct consequence of the raising of interest rates decided by the ECB.
We know that banking institutions, when it comes to making maneuvers in their interest, are very resolute and fast, but this time it seemed too much!
Current accounts at a cost of € 10 a month? Yes, it’s reality since August 1st
Mr Bank wants to show you how and what the background is behind this whole story.
The communication of Banca Intesa San Paolo
We already had bad news from Banco Popolare, Ubi Banca and Deutsche Bank; now Intesa San Paolo has also decided to increase current account expenses to its most loyal customers, those who respect these two criteria:
1) opened the current account before 2016 ;
2) they have an average annual stock of over 2,000 euros.
In practice, Banca Intesa sent a communication in which it warns most of its account holders that due to the new market conditions and the negative reference rates, the fee for their current account will increase to € 10 depending on how the average stock is positioned in this table:
Mr Bank wants to help you understand what lies behind this unexpected and unpopular decision. What’s in fact behind this price increase by Intesa San Paolo?
The reason is constituted by the low interest rates of the interbank market which in fact make the liquidity left in deposit on the current account by the customer a “cost” for the bank. The European Central Bank ECB has recently recognized the interest rate at -0.4% and this reduction in market rates has generated this increase, which however remains unjustified vis-à-vis the customer.
Is Intesa San Paolo’s position legitimate?
By law, banks can make unilateral contractual changes, in accordance with the Consolidated Banking Act, without prejudice to the fact that specific rules must be complied with on notice, personal communication and above all justified reason in making the change.
As regards the Intesa San Paolo affair, on this point in particular we could discuss, even if the client always has the right to withdraw from the contract.
Should it change at this point in the banking system?
Before understanding what are the procedures and any inconveniences that we may have to face in a hypothetical change of the banking institution, we must ask ourselves the question: “ should we really change banks? “.
Italians generally complain a lot about the conditions offered by their own banking institution, but then in reality they are not always really determined to make a change. In fact this behavior is not always to be stigmatized, also because the things to be taken into account are not few.
Below is a useful reminder of the main points to consider:
- Did we find a cheaper bank? It’s true, there are online banks, but can we really do without the physical desk for our needs? In addition to the monthly fee, what are the variable costs of the main operations we usually do?
- How many and what are the things that we will have to manage (change of cards, credit, domiciliation, etc.)
- Do we have any associated securities accounts? Will we have to open them with the new bank? How much will it cost?
What should I do to close a bank account?
First you need to follow some common sense rules, in particular … open the new one first! And not only open it, but also move the domiciliation, the possible crediting of the salary, credit cards, etc. Not to be underestimated then is the case in which securities accounts are also opened, because the shift, for example, of shares or other financial products may not be very fast. In some cases it will be necessary to keep the two accounts open in parallel for a few weeks, if not longer.
At the time of closing the account remember that, according to the law, you have the right to reimbursement of unused rents, if the payment is for example annual and early.
At this point you have all the elements to decide without having to regret hasty decisions.
Here are the online current accounts reviewed by Mr Banca