Alternative Banks For Ulster Bank Customers

In February , NatWest, owners of Ulster Bank , confirmed that they will be withdrawing from Ireland.
They said they will begin a “phased withdrawal from the Republic of Ireland over the coming years

In late July 2021 Permanent TSB announced that they had signed a memorandum of understanding with Ulster Bank-owner Nat West to acquire €7.6bn of non-tracker mortgages, SME loans and 25 branches. The proposed deal could also see between 400 and 500 Ulster Bank staff transfer to Permanent TSB.

Ulster Bank announced in July that from close of business on October 29th, personal banking customers will not be able to access new products from the bank. This includes, current accounts, deposit accounts, ncredit cards and personal loans.

However – Ulster Bank will continue to accept applications from existing customers for new mortgage lending after October 29th. If you have a mortgage fully approved and an offer letter issued, it will transfer to a new provider in the future.



Here we are providing some information on some of the options and alternatives for Ulster Bank customers


What can Ulster Bank Customers do Now?

Current Accounts

Eventually , Ulster Bank will write to it’s current account customers informing them that their accounts will be closed. The usual practice will be that customers will be expected to find an alternative bank by a certain date. If the funds are not moved out of the account by the closing date – Ulster Bank will probably issue a bankers draft for the balance.


To save a last-minute rush – it might be a good idea to start thinking about getting a replacement current account sooner rather than later. You will have less chance of problems if you get things moving early.

Alternative Current Accounts

There are 8 options for switching current bank accounts in Ireland.
We have a regularly updated comparison of all the Current Bank Account Charges in Ireland.

Most of the banks now have charges – but as you will see from our comparison it is still possible to get free banking in Ireland.


This closure might be a good time to take the plunge and go fully digital with your banking with N26 ?


Switching Credit Cards

If you have an Ulster credit card in Ireland you will probably have 3 options:

  1. Clear any outstanding balance by the closing date ,and apply for a new credit card with another service provider. See our page listing the Credit Cards WIth The Lowest Interest Rates

2) You could apply for a new credit card with another provider and transfer the balance to the new card. ( If your credit history is poor – you might not be able to get a new card.)
There are a few credit card providers that will even give you 0% interest on balance transfers for a few months. However – some of these offers might be withdrawn if they get a deluge of Ulster customers switching.
See our List of Credit Cards With Offers

3) If you can’t clear the credit card balance and you can’t transfer it to a new provider – then Ulster will probably have to work with you to convert it into a personal loan.

There is a good guide here about Credit Cards in Ireland


Savings Accounts

Money in Ulster Bank accounts is covered by the Irish Deposit Guarantee Scheme. This covers up to €100,000 per person. This means for joint accounts you will have protection up to €200,000. So your money is safe.

It is estimated there are €10 Billion of household deposits held with Ulster Bank in Ireland. Many people just keep their savings with the same bank they have their current account with. By doing this you could be losing out on potential interest. The difference between some deposit interest rates can be as much as 100 times more ( 0.01% compared to 1%) .

Whilst there is no big rush to move savings – now might be a good time for Ulster Bank Customers to start looking for alternative savings accounts.

We have a page showing the Best Interest Rates in Ireland
Some of the highest interest rates are available from EU banks.


Alternatives to Deposit Accounts:

If you do have some cash on deposit making very little interest – you might be thinking of investing some of it in stocks and shares. Before you do – take a look at our Comparison of Share Dealing Fees in Ireland – it could save you hundreds of Euro in charges.
(Note – Risk of loss. Your capital is not guaranteed when investing in shares.)


Mortgages


Ulster Bank is estimated to have about 15% of the mortgage market in Ireland.

It is expected that anyone with a Mortgage at Ulster Bank in Ireland will not have to do anything if they don’t want to.
It is very likely that the mortgages will be sold on to other financial institutions. The good news is that all mortgages will have to continue under the existing terms until the loan is paid off.
So if you have a low rate tracker mortgage with Ulster Bank – you will not lose it. Don’t switch – or you will lose the tracker rate.

If you are on a fixed-rate mortgage – you should wait until Ulster Bank tell you what is happening with your mortgage, then you should be able to switch without penalty. If you switch now – you may have to pay a fee.

However, – if you are just on a standard variable rate, you may want to think about switching to another mortgage provider.

Many lenders in Ireland are offering cashback to new mortgage customers – sometimes as much as 3% of the mortgage. On a 300,00 mortgage that would be €9000.
You might also get a lower rate of interest than you are currently paying with Ulster Bank.

Read more about Cashback Mortgages here

Check our page on the Lowest Mortgage Rates in Ireland to check the possible alternatives for Ulster Bank customers