Understanding current account fees: what they are and where to find them

Do you want to know how much your current account costs? Or understand if a bank's offer is truly advantageous? In both cases, the information is available in documents that the bank is required to provide you. However, it's important first to understand what the costs of a current account are and to clearly distinguish between "pay-as-you-go" and "packaged" accounts.

Current account costs

Just like a utility bill or a car, a current account comes with both fixed and variable costs:

• fixed fees are those you pay even if you don't use any of the services offered by the account. Examples include stamp duties, the account maintenance fee, and any charges for mandatory bank communications;
• variable fees depend on how often you use your account. The more transactions you make, the more you pay. For instance, if in a year you make ten bank transfers at €2.50 each and ten withdrawals at €1 each, you'll pay €35—€25 for the transfers and €10 for the withdrawals.

Depending on which type of fee dominates—fixed or variable—accounts generally fall into two categories:

• pay-as-you-go account (also known as a "standard" account). This is an account where each transaction incurs a charge. You might choose this if you plan to make few transactions for specific needs; for example, linking it to a securities account for investments or using it to pay mortgage instalments;
• packaged account (also known as a bundled account). This has a flat monthly or annual fee that includes a set number of transactions; beyond this limit, each transaction is charged. Sometimes, an unlimited number of common transactions, like withdrawals and transfers, is included. Before choosing this type of account, estimate the number and type of transactions you realistically expect to make in a year and assess whether the "package" of transactions suits you. Keep in mind that if you exceed the number of transactions included in the "package," the fees for each additional transaction could be high.

Where to find fee information

To understand the full cost of an account, three key documents are available:

• the Fee Information Document;
• the Information Sheet;
• the Summary Document;

Make sure to read all documents very carefully before signing the contract.

The Fee Information Document provides information on the main fees, such as the annual fee and those for common services linked to the account, like fees for credit transfers and withdrawals. You can find it at bank branches and on the bank website. It follows a standard format valid for all banks in the European Union, making it easy to compare offers.

The Information Sheet contains information about the bank, the terms of the offer, and the main features of the transactions and services, conditions that will also be included in the contract. You can find it at bank branches and on the bank's website.

The Summary Document provides personalized information about the costs and conditions of the offer, for example, following a promotional offer or an agreement with the bank. It may coincide with the Information Sheet if the offer is not personalized. The bank must provide you with this document before you sign the contract.

The Fee Information Document, the Summary Document, and the Information Sheet must comply with transparency rules issued by the Banca d'Italia. These are very precise requirements regarding content (i.e., what information must be included) and form (i.e., how this information is presented). For example, the Information Sheet must follow a format that facilitates comparison between offers.

The actual cost of the account will depend on the services you use and the number of transactions you make; in other words, on how you use the account. To give you a reference, the Fee Information Document provides six standard user profiles—young people, families, and retirees with varying levels of activity—and for each, it shows the Total Cost Indicator (ICC), an indicative annual cost of the account for each profile.

However, remember: the cost of the account for you might differ from the ICC value. This indicator is an estimate and might not consider some costs of services linked to the account, such as charges and interest on credit facilities.

To get a complete overview of the cost of all services included in the offer, you can consult both the Information Sheet and the Summary Document, when there are differences between the two.

Where to find the costs of your account

Now, let’s turn to the costs of the current account you already have. At least once a year, the bank must inform you about your account performance and any change in the financial conditions applied. To do so, the bank provides you with three documents:

• the Bank Statement 
  This document lists all transactions, amounts credited or debited, the balance (debit or credit), and the calculation of interest when applicable;
• the Updated Summary Document
  This document lists the economic conditions currently applied. Any changes compared to the previous communication must be highlighted;
• the Expense Summary 
  This document summarizes the expenses you've incurred, categorized by type. It also includes the ICC. You can then compare the actual expenses with those expected and assess whether the account still suits your needs. If not, you can consider the current account offer of other banks or post offices or even switching to a mere payment account.

Being aware of your account's costs is important. The way you use it and your needs can change over time; for example, the frequency with which you use certain services might increase or decrease.

If you want to change accounts

If you decide to close your account and open a new one at another bank, consider that you can use the portability procedure to transfer the deposited amount and the payment services you've activated, such as salary crediting or direct debiting of bills, to the new account. Portability is your right, and it is free.

Remember that portability does not imply closing the old account, which you must explicitly request. Also pay attention to the account closure fees. You can check all costs and other conditions in the Summary Document.