Portugal’s high street banks must from today display information on low costs accounts in their branches.
A 'minimum banking services' account category was created by law in 2007 but from October 5th this year banks must display information for customers who then can open new accounts, or switch deposit accounts to current accounts, under the news low cost regime.
The new rule was published a week ago in the Official Gazette by the Bank of Portugal, so as from today, if customers are fed up with monthly bank charges eating into their hard earned cash, they must have access to information about an account which cannot be charged at more than 1% of the national minimum wage – per year.
The current minimum wage rate is €505 pcm so low-cost accounts must not cost more than €5.05 a year compared to many current accounts that cost this amount each month.
Part of the new regime for low-cost banking is that banks also much contact their deposit account holders and inform them of the new option.
During the first six months of this year, just 5,140 low-cost accounts were opened at Portugal’s eight main banks as they have been reluctant to advise customers on how to save on bank charges.
The 'minimum banking services' account includes a range of services considered essential such as provision of a debit card, direct debits and national interbank transfers.
Banks now must provide these minimum banking services and may not charge extra.
Before deciding which low-cost account to go for, many customers are waiting for Portugal’s CTT post office to launch its new banking service.
When contacted today, PT’s press officer Fernando Serrano Marante commented,
"Banco CTT is expected to be launched by the end of 2015. The bank will use CTT's Post Offices as branches throughout the country and will offer a portfolio of no-frills and useful products and services to its clients. Banco CTT's launch date and brand identity, as well as the offer details, will be announced in the next few months."
