I’m sharing a cautionary tale today – let the bank customer beware – so you don’t get caught out like we did!
You are particularly in danger if you have been a long term, loyal, bank customer – like us.
Hubster has been with this bank for 35 years; I joined when we were married, over 26 years ago.
But that seems to mean nothing these days.
A Cautionary Tale: Bank Customer Beware!
About twenty years ago we set up a “Bonus Saver” account with our bank. The idea was that it would promote saving – the rules were that if we kept a minimum of $500 in the account, and made less than two withdrawals in a month, we would get a “bonus” rate of interest. Hence the name “Bonus Saver” (funny, that!).
To be honest, we hardly ever used it. Like most families, savings were merely a figment of our imagination.
However after hubster received a redundancy payout last year, we spoke to our home loan manager and were advised not to put the lump sum into our home loan – as it would throw the account into credit and we would not receive any interest. Instead, we should put it in one of our savings accounts. So we put it in that “Bonus Saver” account (it’s still called that to this day).
When Bank Accounts aren’t what they Seem …
But did you know that the rules change? And that just because a banking product is called a BONUS SAVER, doesn’t mean a damn thing?
Never having had “savings” before, I didn’t pay much attention to the interest going in each month. It wasn’t until we did our tax with the accountant last week, that we realised we should have been getting more interest. As in, a whole LOT more interest.
Thinking the bank had made a mistake I followed it up.
Apparently, it’s our fault. Too bad so sad. Snooze you lose. And all that guff.
Here’s the rub: it is up to you, as the bank customer, to keep track of any changes in the fine print (because you have nothing better to do, of course!).
Apparently we were advised back in 2008 that the interest rate would change to just 0.05% – in the fine print at the end of the statement that nobody ever reads. Oh, and there were ads in the newspapers too.
My question is: we obviously wanted a “bonus saver” type account. So why didn’t they just automatically switch us to whatever the new version of the account is (currently called an e-saver on their website from what I can see), instead of penalising us?
We were also told bank staff called us a couple of times to try to book an appointment to “discuss our options” (which we translated as “so we can try to sell you life insurance” – funnily enough – because that’s what’s happened previously). I don’t know about you, but we get so many spammy and salesy calls, we actually DON’T drop everything for them (shock, horror)!
So – it’s our fault we didn’t realise that we were now landed with a “Bonus Saver” account that actually wasn’t, with a really crappy, 0.5%, interest rate.
“Don’t contact us; it only counts if we contact you”
The thing is, over the past year or two, hubster and I have both had occasion to sit down with a member of bank staff to discuss particular concerns. The hubster, about his redundancy pay out (the conversation with the home loan manager mentioned above). Me, because I got hit with a $62.50 transaction fee on that exact account (it had been so long I’d forgotten this condition). Needless to say I tightened up my banking habits at that point in time.
But at no stage was it mentioned that our “Bonus Saver” account, was anything but.
The bank claims it is our responsibility. It seems they can change the goal posts whenever they like, throw something in the fine print at the bottom of a statement and that’s it. Personally I would like to see it in bold capitals, at the top of the statement – or here’s a thought – actually send us an email/letter to let us know!
Seems there is no such thing as “good will”, or looking after loyal, long term customers. Silly us for thinking that our banking product was the same as it was 20 years ago, and for believing them when the account was titled a “BONUS SAVER” account.
For the first time, like many others in the “middle aged” bracket, we actually have some savings (hooray!). I want everybody to know, be “vewy vewy careful” about what accounts you have, especially if it’s an “old” account, or you have been with your bank for more than a few years.
I’m pretty sure hubster and I are reasonably intelligent. I can only imagine – if we have been caught out, have many others are, have been, or will be?
Needless to say we are switching banks. We have already filed a complaint with the banking ombudsman too, but hold out little hope – a big bank against little ol’ us? Yeah, good luck with that.
You’ve heard the saying “let the buyer beware”. I’d like to add, “LET THE BANK CUSTOMER BEWARE”.
Is it just me, or have we been ripped off and misled? Has your bank treated you like dirt?!
UPDATE: We lodged a complaint with the finance and banking ombudsman, and about a month later the bank paid us the missing interest. Yay!
Can’t believe this!! How crazy! >:(
Oh dear! Unfortunately, or fortunately, don’t know which, you are both right. They have followed their contractual obligations, albeit in a very limited and non-transparent way and you have every right to expect a bit more customer service and consideration than what they have provided. We are simply another number to them (maybe they should be in government).
You are doing the right thing, vote with your feet. I’ve thought of doing this so many times over the last few years, however I have my account structure set up how I want it and working to our best advantage. It fits our lifestyle and there is no other provider that can offer us the same or better. So, for now, we stay where we are and complain (alot) about the bank. Good luck with the Ombudsman.
I see it like insurance, it’s something we should constantly review to see if we are getting the best on offer, and be prepared to switch or renegotiate if it’s not.