What’s the catch with PTSB ‘paying’ account holders?

QPermanent TSB’s new current account pays customers money. A bank paying us money – that doesn’t sound right! What’s the catch?

APTSB is quite excited about its new Explore account that, as it points out, ‘pays customers instead of charging them’. And, in fairness, it has a lot of pluses – but also quite a sizeable possible catch for people who have their mortgage with PTSB too. First the positives:

1. Every time the PTSB Visa Debit Card is used in-store or online, you get 10c. That’s up to a maximum of €5 per month but it all helps and other banks charge customers for using cards.

2. If you pay bills by direct debit, you get 5% cashback from certain companies including Sky, SSE Airtricity and Topaz, with more set to join up, according to PTSB. That’s not as much as it sounds. Even if your fuel, TV/ broadband and energy bills totted up to a hefty €300 per month, this would save the princely sum of €15.

3. In partnership with Visa, PTSB says it will come up with personalised offers and discounts based on the ‘kind of things (customers) like to buy’. We’ll have to wait and see what sort of offers they come up with. But many people would feel uncomfortable about having that close a relationship with their bank.

Of course, banks know what we spend our money on, but I personally wouldn’t want them analysing this and sending me out offers based on that knowledge. But maybe I’m a fuddy duddy who hates shopping anyway and others may appreciate the bargains (if any) which PTSB sends their way.

There are no fees for using the debit card or direct debits and standing orders. And the main cost is a lowish €4 monthly fee, yet this still adds up to €48 a year – to be deducted from the gains outlined above.

In financial terms, this account is obviously the best value as it’s the only one that pays you money. Yet PTSB will still make profits. They’re cashing in on the trend where companies monetise information about you and use it to do promotional deals with other firms. This, admittedly, can be of benefit to everyone, including you.

PTSB is cute and knows customers get riled about bank charges, even though they are among their least financially significant products. By shopping around for bank charges you can save €48 a year, by shopping around for a mortgage, you can save €17,500.

Mortgages here are among the dearest in Europe and PTSB advertises the third dearest variable rate here. So if you get your mortgage from the lender you bank with, as many people do, you may not get the best deal out there.

You could go to another lender for your mortgage, but one of the cheapest (KBC) gives a low-rate incentive if you open a current account too, which trumps PTSB’s offer if you’ve a mortgage with PTSB too – a far more significant product.

QI receive Single Person Child Carer Credit, which I believe can save a lot of tax. But it’s not much use to me as I have no income. I am still on good terms with my former partner who does earn a lot. Can I transfer it to him?

AAs the main claimant, you can give up the credit in favour of a secondary claimant provided the child resides with him for not less than 100 days a year. You must both sign Revenue Commissioners forms (SPCC1 and 2) relinquishing and applying for the credit respectively. (Available from revenue.ie).

Where there is more than one qualifying child, two or more secondary claimants may be entitled to claim the credit, provided all conditions are met.

QI have Verizon and Vodafone shares since investing in Eircom. Is there a low-cost option to sell them?

AThe low-cost window has closed. You can sell Vodafone through a stockbroker here. For Verizon contact Verizon Shareowner Services, c/o Computershare, PO Box 43078, Providence, RI 02940-3078, USA. Tel: 00 1 781 5753994.