A ValueIreland reader write in earlier this week to share their experience of just how desperate the Irish banks (or one of them at least) are to get money locked away on long term deposit.
Our reader went into a branch recently to lodge a decent sized cheque to their current account in order to pay some bills.
They went in with their cash card and presented the cheque to be lodged as one would normally do. The reader thought it was strange that the receipt provided was manually made out rather than printed, but confirmed with the teller that the money was available immediately (both accounts were with the same bank).
Given assurances from the teller that the money was immediately available, further cheques were written and posted out.
And all of the cheques bounced.
When checked with AIB, the reader found that instead of lodging the money into their current account, the money was actually lodged into a term deposit account, locking the money away for months.
As the reader says:
I had a feeling something was up when they gave me a written receipt rather than a printed one, but suppose I shouldn’t have been so trusting when they told me the money was definitely available in my current account immediately.
I had no inkling that they would even be able to lodge the money to another account since I provided them with my cash card linked to my current account.
It just shows the efforts they’d have gone to to use that information to track down if I had any other accounts and then lodge the money to an almost dormant term deposit account rather than to my current account.
For anyone familiar with term deposits nowadays, it’s nigh on impossible to get money out before the term ends, so in doing this immediately without any fuss, to me it just shows that the bank knew well they’d been caught out pulling a fast one on one of their clients.
Moral of the story – as usual, never trust your bank, particularly an Irish one. And secondly, when lodging money in the bank, make sure you check your receipt – printed or written – and make sure the money has ended up resting in the account that you expect.