While many banks have been charging account management fees for a long time, the ING direct bank always advertised with its free checking account. But now it should be over – at least for some of the customers.
ING is the first large direct bank to say goodbye to its unconditionally free checking account this year. Other banks have been tying free checking accounts to certain conditions for some time.
As the ING states in a letter to your customers, the change will come into effect in May 2020, the first payment will then be made in June. However, only for current accounts, “which receive less than 700 euros per month”. These accounts then cost 4.90 euros account management fee.
Payroll accounts are not affected by the new fee
Accounts that are used as a salary account and that receive at least EUR 700 per month are not affected by the cost introduction. Withdrawing money and all other previous free benefits of the account remain free.
Young people continue to pay no fees
If you are under the age of 28, you do not have to expect new account management fees, ING announces on its website.
ING advises those who expect fees in the future to switch: If the salary account moves to ING, the current account remains free of charge.
Costs are only passed on to some customers
“Because account management costs money” is the reason given by ING. The technology, cards, telephone service and services provided by other companies would have to be paid for.
“We have not passed on these costs to our customers in the past,” the bank said, but the market has changed in recent years. In the future, customers who do not have ING as their house bank will share in the costs. For example, those who have previously only used the current account at ING for “money parking” should be made responsible.
Pensions, pensions and other income affected?
Pensions, pensions or other income are also counted as income by ING and thus ensure a free current account. It does not matter where the money comes from – it is important that it is at least 700 euros per month.
If you earn less than 700 euros in a month – for example as a freelancer or when changing jobs – you will pay an account management fee for this month, which will be suspended as soon as more than 700 euros are returned to your account.
A quarter of ING customers are affected
As the “Süddeutsche Zeitung” reports, around a quarter of 2.8 million ING customers with current accounts are affected by the new fees. Most customers already use the account as a salary account or are under 28 years old.
For a direct bank without a branch network, however, the costs for the other customers are comparatively high. Up until now, ING had always advertised with its free accounts and had thus attracted many customers to the branch banks.
Other banks have introduced similar conditions
According to the consumer portal “biallo.de”, the DKB had already introduced a similar regulation in the same amount in 2016. Here, however, customers do not pay a fee, but are put in a worse position than “active customers” – for example, they pay a higher discount rate.
In January the portal compiled that only a good 40 banks now offer a free current account. In addition, there were around 60 financial institutions that – like ING – now waive the account maintenance fee under certain conditions.
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