Judobank Arbitrarily Changing Interest Rate on Fixed Term Deposit

Ave Maria on 29/09/2023 - 21:41

I just noticed this, and while waiting for a response from Judobank I would be interested if anyone else has experienced this.

I opened a 6 month Judobank TD in July, with the rate locked at 5.45% (that was the best possible outcome).

The correpondence received & kept online, indicates that the interest rate is locked at 5.45%.

However the account details checked today, show that the interest rate paid at maturity is only 4.95%.

Can anyone else that has a TD with Judobank also please check their TD account details and if they also see anything fishy report it here please.

Financial Interest Term Deposit

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Comments

  • CyberMurning on 29/09/2023 - 21:55
    +3

    Holy Maria… … if true this would be the biggest scandal of the 2023

    • Mokr on 29/09/2023 - 22:32

      Really never heard of a royal commission.

      Business are just people like you and me.

      They make mistakes or malice.

  • justgooddeals on 29/09/2023 - 21:58
    +3

    Screenshots or photographic proof or it didn’t happen. …..and I highly doubt it did.

  • jackofspade on 30/09/2023 - 08:33
    +1

    It was 5.45% back in July https://www.ozbargain.com.au/node/785838
    That's very dodgy

  • Drakesy on 30/09/2023 - 08:58
    +1

    A bank doing dodgy practices!?
    NEVER!

  • payless69 on 30/09/2023 - 09:06

    Suncorp just told me:
    Bad bad ACCC because of that I lost my interest! $150 bucks just gone without further explanation!

  • garetz on 30/09/2023 - 11:54
    +1

    Make a complaint to the ombudsman. As long as you have all the paperwork you should be fine.

  • Ave Maria on 30/09/2023 - 15:56

    I will post an update once an explanation is received from Judo bank. The maturity date is still for a 6M deposit but somehown not only they have reduced the interest rate from 5.45% to 4.95% but also the term number of days are now quoted as 129 (should be 184)! My only guess is that something must have gone wrong with their recent migration to a new digital platform that is also supporting the new Judo smart app access. Most likely they used the remaining dates since moving to the new platform and also gave me the rate at the time of the migration. If so I would not be the only one affected and hence the request (please) for other Judo customers to check their TD details online (if they had one set up in July-August) and report here (again please). I am sure once it is clarified as to what has happened Judo bank will correct it (well I hope so).

    • jackofspade on 30/09/2023 - 16:42

      More importantly, is the payout amount correct?

  • Ave Maria on 30/09/2023 - 16:48

    No it is incorrect - they only provide a suggested payment amount in the account details (but it is wrong) & on the original advice received indicating the locked details they never included the amount paid at maturity. My gues is that their recent migration to a new digital platform has messed up all TD accounts (and perhaps their loans as well).

    All they show for my 6M Term deposit at the moment is the below (only showing the significant details)

    Term 129 day(s) Start date 11 July 2023 Maturity date 11 Jan 2024 Interest rate (p.a.) 4.95% Interest payment frequency At Maturity

    The correct days is 184 & the locked rate is 5.45%

    Most savers do not check their TDs every day (I don't) as the interest rate is fixed. I did all the required checks when the TD was setup & a few more times after that to make sure the money is still there -:). I only checked again recently as I installed the Judo bank Smart App & noticed the discrepancies in both the online & smart app access.

    I am sure others are also affected but I was possibly the 1st to notice and/or report.

  • coolcup on 03/10/2023 - 00:24

    Hi mate - thanks for sharing this. Just FYI I checked mine on the portal and all seems per my original records. Perhaps some sort of specific error on their part? Just wanted to let you know that it doesn’t appear to be systemic.

  • Ave Maria on 03/10/2023 - 17:32
    +1

    Thanks to those that replied. Judobank confirmed today that there is an error in their system and that they will correct it. They did not explain what caused "the error" but as long as they do fix it all good.

  • Ave Maria on 23/10/2023 - 16:22

    TIme for an update on this. Three full weeks after JB aknowledged that the account details are incorrect, they still have not been able to correct anything. That is enough for me not to renew with JB early January. They are not to be trusted (very bad customer service based on my experience so far) & banking with them is always a risk as they are not making any profit according to their own financial statements. At the moment they are not even offering the best TD rates.

  • Ave Maria on 03/12/2023 - 13:17

    Judo back, has now both aknowledged & fixed an issue with the TD Maturity Instructions update facility. The issue repeated a second time when I decided to keep the TD with Judo bank, maturing next monthh, and this time they were very quick to fix the issue properly.

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