Bank of Ireland has written to its customers to remind them that the bank will be changing the charge structure applying to current accounts from December 7th.

Previously, Bank of Ireland customers who maintained £100 in their account qualified for free transactions but this will no longer be the case.

Instead, the bank is eliminating the 21 different current account service charges which are in place at present, including set-up charges for standing orders and direct debits and annual cheque and eurocheque charges. It is replacing them with two simple fee structures - customers can either choose to pay 22p for every transaction they make from December 7th or opt to pay a quarterly flat fee of £9 which will cover up to 90 transactions. The bank estimates that most customers make around 36 transactions per quarter.

Bank of Ireland says its new fees will be simpler and easier to understand and should save most customers money. It estimates that just 7,000 of its 500,000 current account customers availed of free transaction banking by maintaining a £100 balance in their accounts. While they will now have to pay the transaction charges, they will no longer incur service charges as in the past.

The bank estimates the change to the charging structure will cost it £5 million per annum and will benefit some 95 per cent of customers. The change is part of a 100-step programme being undertaken by the bank between now and 2000 to improve its banking service for customers.

Customers with queries about the new charge structure can contact the bank's Customer Advice Line on 1800 30 10 30.