Pay a fixed monthly amount for all your bills.
What is the Flat Rate scheme?
- It is security, knowing that you will be able to meet all the bill payments included.
- It is peace of mind, as every month you pay a small amount and you'll never again have to worry about getting a nasty shock from a bill.
- It is confidence, you can take it for granted that all the bills included have been paid, just like that.
Which bills can I include?
You can include any bill, except credit card bills, loan repayments or bills issued by businesses and banks.
Bills can be monthly, quarterly or annual.
The total amount may not exceed €3,000* (*Subject to the Bank's risk admission criteria).
When do I pay my bills?
Every month you pay just a small amount. The only thing you have to do is plan your year in terms of the bills you receive, think about which bills set your monthly budget off balance, and together we’ll sort out your accounts:
For example, in my case:
- In March, I pay the home insurance: €104.80/year
- In March, I pay the life insurance: €97.45/year
- In August, I pay the car insurance: €409.65/year
- Last year, in mobile phone bills, I paid: €749.00/year
(Every month, my mobile phone bill (family contract) is different, varying between €25 and €200/month. Adding up all the bills from last year, it gives me a total of €1,360.90/year)
- Last year, my total electricity bills came to: €1,385.00/year
(Even though I now get billed monthly, I’m not sure about the system they use to estimate it because every month I pay a different amount, so I added together all my bills from last year and increased it by approximately 7%).
In total 2,745.90; then I add on a little more for any possible increases, for example an extra 3% for potential increases, giving a total of approximately €2,828.28.
I divide the resulting amount between 12 months and I know that every month I will pay €235.70. It’s as easy as that.
And can I change the bills I wish to include?
Absolutely, at no additional cost. All you have to do is come down to the branch and let us know, and we will remove or include any bills you wish. Remember that the limit we have is €3000 (*) a year.
However, you should remember that by changing bills, the limit will change and so we will have to recalculate the monthly amount, so you have the peace of mind of always knowing how much you have to pay every month.
What happens if I get my sums wrong and the total is higher than I had estimated? And what if it is lower and I’ve paid more than the total of my bills?
To answer your question, I’m going to continue with my own case, assuming different possibilities:
- Having done all the calculations we did before, I’ve forgotten to add that % and haven’t taken into account minor price increases, and I take out my payment protection account for €2,745.90:
At the end of these 12 months, I will have to settle this account, and the difference will be debited from my instant access account: €82.38 (3% of €2,745.90).<
- I try to keep my whole family on a tight rein and I negotiate with my car insurance provider to reduce my premium this year by a little, taking the total of my bills to €2,686.85 (5% less than expected).
At the end of the 12 months, the amount of €141.43 (5% saving made on my bills) will be credited to my instant access account.