Despite natural reluctance to switch your current account to a different bank, you should select the institution whose charges best suit your habits, writes Laura Slattery

When your quarterly or annual bank statement lands on your hallway doormat, it is easy to be dazed by the endless pages documenting every ATM visit and direct debit that has conspired to make your current balance seem very modest indeed.

But yesterday, the Irish Financial Services Regulatory Authority (IFSRA) said bank customers should examine how they use their accounts in order to save on fees and charges.

Consumers can pocket significant savings by shopping around for a current account, but the potential savings vary according to our routine banking habits, according to Ms Mary O'Dea, consumer director of IFSRA.

"The savings may not be immediate, as with other financial products, but over time they can be considerable," she said.

"The way you operate your current account can make a difference to your costs. For example, some institutions may charge less for phone or internet transactions than for paper transactions."

Ms O'Dea's comments coincide with the publication of IFSRA's second independent cost survey of current accounts. In addition to detailing personal current account charges, the survey contains three consumer-profiles and calculates the total charges different banks would impose.

The first consumer-profile is a person who uses his or her bank branch frequently and writes cheques for most payments. This person holds an average credit balance of €150 during the year.

IFSRA found that the annual charges for the customer ranged from nothing at all to €126.80.

The second profile was of a typical consumer who banks online and by telephone, with most transactions using laser or ATM.

This consumer requires an approved overdraft facility, which meant he or she could not avail of National Irish Bank's Freebank current account. However, the consumer could still save €77 by shopping around.

The third sample consumer was a person who pays all bills by direct debit or standing order and uses laser to make purchases and ATMs to withdraw cash.

This consumer does not maintain a regular credit balance and has been overdrawn by up to €200 on a few occasions without an agreed overdraft.

IFSRA found that such a consumer could save up to €62.40.

Permanent TSB was the most expensive bank for the chequebook and branch-user. However, the bank offers its mortgage customers - and people who hold a balance of €1,000 or more - free transaction banking.

Ulster Bank's U First account proved to be the most expensive for the second two profiles.

The account costs a fixed €9 a month - €108 a year - in exchange for free transactions, an automatic overdraft limit of up to €320, and a number of other lifestyle benefits and discounts.

But the monthly fee does not include charges for setting up standing orders and direct debits or exceeding the overdraft limit.

Since IFSRA published its first current account cost survey, Ulster Bank has raised the threshold for free banking on its standard personal current account to €500. Until May, any current account holder qualified for free transactions - as long as their account remained in credit.

That move left National Irish Bank as the only financial institution in the Republic offering free banking to all personal customers whose accounts remain in credit.

Despite the savings available, it is believed that very few people ever switch their current accounts, largely due to the cost and hassle of setting up new direct debits and acquiring new bank cards.

The IFSRA survey is available on its website (www.itsyourmoney.ie) or at its new information centre at College Green in Dublin. Copies can also be obtained by calling its consumer helpline on 1890 777 777.