Bank Terms and Conditions Savers Hate The Most

Ave Maria on 08/06/2024 - 11:14
Last edited 08/06/2024 - 11:18

aka Bank terms and conditions savers would like to see gone

I will start this conversational topic in the hope some bank managers take notice (unlikely but one can only hope).
At least it may provide a vending avenue for frustrated savers & bank customers

To get paid the full bonus or max rate

(1) Increase your balance each month
Like if we do not have bills to pay & have a source of income other than savings?

(2) Increase your balance each month on top of interest paid
As if (1) was not bad enough interest increase is excluded (why? why? why?)
Oh yes, you do not want to pay me interest if you can avoid it.

(3) No withdrawals allowed or just 1 withdrawal allowed (latter not so bad)
really I can save but not spend money to live on? as bad as (1) & (2)

(4) Do not increase your balance above X amount
Why? Don’t you want more of my money ?
Oh yes you do but you do not want to pay me interest

(5) Transfer x amount ($200 to $2K) from an external account into a specified account (that could be different from the saver account).
I would love to know who 1st came up with this one & name & shame them.

(6) Make 4-5 transactions on your debit card (linked to a transaction account)
I would love to criminally charge & sentence to an institution for the mentally insane whoever came up & continues to insist on this condition.

(7) Meet conditions previous month to qualify for the next month (the time travel clause that makes the healthiest of us dizzy with motion sickness).

Transfer Limits/Limitations

(1) You can use OSKO but only up to $1K (what the ????)

(2) We can take your money but you can only take out what we may allow you.
Call us and we will try not to put you on hold for hours to "temporarily" increase your limit.

(3) We will let you take money out but it may take up to 3 business days to reach the target account (fast payments anyone?)

(4) No OSKO/NPP (fast payments) – some banks call it a security feature to benefit customers (I will not name & shame we all know which ones)

(5) Not allowed to transfer make payments directly from the saver account.
So we are forced to make an internal transfer 1st to pay bills.

(6) No direct debits from saver accounts.
So we have to plan ahead for direct debits for credit card & bill payments.

It does not look like banks care for anything other than maximising profits and keep devising new ways for savers to miss on interest payments (again to maximise profits).
Banks are all for profit and nothing else. They advertise customer service and focus but they are anything but (even the credit unions/customer owned ones – some of those are actually the worse).

I hope I kept the list short. Please feel free to add to the conversation. And yes most of us find clever ways around most of the unreasonable hoops and conditions but some are so insane that only offering a top rate (often short lived) can attract savers to the banks imposing them.

Financial

Comments

  • MS Paint on 08/06/2024 - 11:24
    +13

    hope some bank managers take notice

    The branch manager at your local ANZ has no influence on how the organisation sets it savings accounts terms and conditions.

    Banks are all for profit and nothing else.

    That's sort of what shareholders demand. Economics 101.

    • askbargain on 08/06/2024 - 11:32

      invest in bank stocks. some economics rule: more risk = more return.

    • pegaxs on 08/06/2024 - 11:42
      +5

      Banks make cents, cheers…

  • askbargain on 08/06/2024 - 11:30
    +1

    so many reasons and you can't think of why banks are doing it other than "maximising profits"

  • pegaxs on 08/06/2024 - 11:35
    -1

    1) easy fix. Have 2 bank accounts and split your pay.
    2) easy fix. Put $5 a month into that 2nd savings account
    3) easy fix. Use your 2nd account as a “savings only” account.
    4) never heard of a bank saying “please don’t give us more money”
    5) easy fix. You transfer it in, then transfer it back out.
    6) easy fix. Can’t tell me you don’t use your card at least 1 or 2 times a week to buy shit.
    7) easy fix. Read the conditions and apply them. They are not unreasonable and it’s usually silly shit like “grow your account in a positive direction…”

    Part Duex
    1) I make car and motorcycles purchases well over the value of $1k. My last bike I OSKO’d $13k… or $12k more than your imaginary limit.
    2) you can take as much as you like from the bank. You either have to take it in the form of EFT or bank cheque, or, if you want cash, you may have to wait a day, because no bank has $500,000 sitting around as liquid cash on the off chance you might want to close out your account for cash.
    3) but on the other hand, if something goes wrong you will want the transaction stopped 2 days later when you realised you (fropanity) up the account number…
    4) so, banks protecting their customers is bad? Again, I have never had a problem with sending larger amounts on OSKO or EFT and it being in their account either instantly or within a few hours. (I will; Adelaide Bank, Heritage Bank, HSBC, RACQ Bank, and RaboBank, to name a few…)
    5) again, never had a problem with this… but “saver” accounts are usually set up to deliberately make it hard because it’s a “savings” account, not and “everyday transaction” account.
    6) again, not an issue for me. I have direct debits coming from “saver” accounts. But again, it is set up like that to make people think twice about delving into their savings account…

    90%+ of your “rant” sounds like it is self inflicted by either not knowing how to set things up, by not understanding how the account types function or by picking a bank that offered shit products…

    • askbargain on 08/06/2024 - 11:41

      4) many banks have tiered interest rates

      • pegaxs on 08/06/2024 - 11:49

        And if you have more money than what a bank wants to pay you interest on, you would be better investing that money in other things. A bank may not want a $1 million long term deposit, and you may only get 3% on it anyway, where investing it may yeild 8~12%. People who have a lazy $1m+ dont put it in the bank to "get interest" off it.

        If OP is crying that a bank wont take their "overly large and generous" deposit because it's over the banks limit… she is doing it wrong in the first place and really needs to seek out proper financial advice.

        • askbargain on 08/06/2024 - 11:55

          never heard of a bank saying “please don’t give us more money”

    • Ave Maria on 08/06/2024 - 11:59
      -2

      I think you are missing both the point and the statement I made at the end

      "And yes most of us find clever ways around most of the unreasonable hoops"

      • askbargain on 08/06/2024 - 12:01

        i'd rather a bank make profit on lazy customers.

      • MS Paint on 08/06/2024 - 12:09
        +3

        It's not clever. It's just applying common sense to the limitations imposed.

      • xrailgun on 08/06/2024 - 12:09
        -5

        lol 99% of replies on ozb forums are from karens who are not-so-subtly flexing about how they're better than you by not personally facing similar issues. they cannot think on a systemic scale. in their mind, the OP is always the soyjak, the businesses, banks, corporations, are always the gigachads who can and should do whatever they want because money.

        • MS Paint on 08/06/2024 - 13:05
          +1

          At least our shift keys work so we can use capitals.

  • c64 on 08/06/2024 - 12:09

    i've grown to prefer getting bonus interest in the following month, eg ME bank HomeMe, vs bonus interest in the same month. it makes withdrawals much easier without losing interest

    • Ave Maria on 08/06/2024 - 13:05
      +1

      Until you also have to manage ME Home Saver, ING Savings Maximizer, Great Southern Bank Home Saver, BOQ Saver, UBank, AMP, Rabobank, Hiver CBA Goal Saver etc. etc. all at once -:) and try to keep up with all the condition variants -:)

      I would love to have one simple account (reasonable rate) - I put money in - I take money out - it makes no difference - I still get paid interest at the end of the month
      I can also transfer money in/out & pay bills/diret debits without a fuss

      that was my whole point - but happy to have everyone chip in - relevant or not - critisise or not - troll or not - (that is what hapens with an open forum) -:)

      I love the Karen posts by the way (you just became one) winge for the sake of winging -:)

      • ssmith3104 on 11/06/2024 - 15:51

        I liked your post.

        Take a look at the Macquarie online savings account. It might satisfy you.

  • randomusername2017 on 08/06/2024 - 12:19

    Oh.. this was supposed to be a serious topic 🤔

    • Ave Maria on 08/06/2024 - 12:58
      -2

      I am glad someone finaly saw the houmor in this -:)

  • Dollar General on 08/06/2024 - 12:37
    +1

    Being on welfare, I bank with the reserve bank of Australia

  • justworld on 08/06/2024 - 12:49

    Put the money in your offset or in shares rather than a savings account. You lose 30-47% of the interest due to income tax so why bother with a savings account.

    • Ave Maria on 08/06/2024 - 12:57

      Some people prefer the safety of cash. Especially older savers/pensioners that have no affinity for risk and got burned some 15 years ago (some learn the lessons of history some don't and most younger savers did not share that bad experience). All investments come with a risk (including cash accounts) but shares are riskier (and ok for those that enjoy taking that risk). I sleep better at night with money in bank (aknoweledging that there is a risk there as well and less returns - hence why I spread that risk as well)

    • Ave Maria on 08/06/2024 - 17:14
      -2

      You do not pay any tax if you are a pensioner and your source of income split in 2 is either tax free (under the threshold) or coming from your tax free super income.

      It is easy to generalise - but not everyones circumstances are the same or in the same boat -:)

      Saving accounts is still a good/best option for some

  • El cheepo on 08/06/2024 - 13:09
    +1

    1) I add $1 but you could literally add 1c to meet that condition.

    2) same as point one…

    (3) can get on board with you there, but i also understand why the banks do that.

    (4) what bank and what amounts? Never heard of it.
    Usually banks with high interest rates just are capped at x amount.
    If you have higher than those amounts and your plan is to park it in a bank are you really investing wisely?

    (5) can be annoying if your pay isn’t directly into that account but it takes less than a minute to do yourself.

    (6) what on earth do you pay for things with?
    If your using a bank for savings but not as your main account, just put an extra few extra bucks in and use that card instead of your usual card.

    (7) this links in with the reason banks do point 3

  • Ave Maria on 08/06/2024 - 13:20

    (4) Upper limits

    examples

    ANZ plus (unless it changed recenty & I do not save with them anyway) you go over $250K you get next to nothing

    St George - used to be unlimited - now it pays a little bit less if you go over $249,999 so not that bad (work around open more than one saver account)

    UBANK, AMP, BOQ, Rabobank just to name a few all have an upper limit of $250K for paying the max rate

    MEHome Saver , ING Maximiser, GSB Home Saver have a $100K limit

    Great Southern Bank Advantage Savers has tiers at $100K-$750K-above that

    Some better experience (to a point)

    Hiver (existing customers of old account) pays 5.25% near unilimted but allows no withdrawals and you have to deposit $1K each months (yes there are work arounds to the deposit & 1 withdrawl on 1st of the month if not a public holiday/weekend)

    CBA Goal saver only has to increase by 1 cent

    Yes ME Home Saver only has to increase by 1 cent (unless you also maintain the other saver account) but you do have to increase above the paid interest rate & pays less for amounts over $100K

    So yes some savers are happy to keep up with the hoops and some manage better than others (it all depends how many hoops and what is the personal tolerance limit)

    Again thanks for all the input & suggestions - that is the point of an open forum (avoiding being offending, rude or a toll) -:)

    • miwahni on 08/06/2024 - 21:52
      +1

      Bear in mind that the government guarantee for funds with individual institutions caps out at $250k so why would you want more than that in any bank? I would think that splitting your funds across a couple of banks would be the more prudent course of action.

  • Ave Maria on 08/06/2024 - 13:25
    -1

    Just to add - I am well aware of all available work-arounds for each bank -:) I have been there & done that & happy to share the knowledge & tricks of a saver if asked (always happy to help) - Not here to critisize or offend anyone.

  • Ave Maria on 08/06/2024 - 13:41
    -5

    And a bit on the funny side

    Maintaining multiple bank accounts is a bit like paying maintenance to multiple ex partners -:)

    You have none (just 1 current) - you are in happy land
    You have one (ex) - you are in trouble but at least learned from the experience
    You have 2 exs - did you not learn any lessons last time ?
    You have more than 2 - you deserve to be punished

    Best lesson learned = either stick to one happy relationship with 1 partner (bank) or have multiple casual non long term relationships (banks) with whoever makes you happier (maximise returns)

    and I expect lots of heat for even suggesting multiple relationships -:)

    PS - I had an account with CBA since 2000 - It is still my primary transaction account where I receive salaries - in a way it is my "unhappy long standing relationship" so I look for happier casual relationships elsewhere on every opportunity I get. Being with CBA has its long term benefits (like access to a branch visit, getting a home loan, fast OSKO high limit payments etc etc).

    • askbargain on 08/06/2024 - 13:53

      CBA is also the only bank that does the 24 hour hold.

      • Ave Maria on 08/06/2024 - 13:58
        +1

        Only the 1st time & if you know the rules you do a small transfer (to a regular paying account) ahead of time.

        My suggestion for 1 off payments to external accounts (not your own) is not to use CBA & send the money to UBANK, St George (an established and already used other savings account) and do the payment from there (as they do not do the 1st time 24 hour hold)

        Ubank has a $20K OCKO limit, St George $100K limit (from the Freedom account) - AMP also can fo $250K fast NPP (not OSCKO)

        just to name a few other saving accounts with high limits.

        For transferring large amounts between your own saving accounts CBA is by far the most flexible (after a 1st time payment)

        I know I have been there my self (but I learned my lesson) -:)

        • askbargain on 08/06/2024 - 14:14

          if i had this money to complain about bank rules, i wouldn't be putting it all in AUD. but clearly you have some mental hurdles to get over.

    • randomusername2017 on 08/06/2024 - 14:00

      and I expect lots of heat for even suggesting multiple relationships -:)

      Still on the topic of deposits to financial institutions or looking for alternative bank options?¿

      • Ave Maria on 08/06/2024 - 14:02

        its an open forum and open for expansion (it's all about banking & getting around hoops - even if that means moving banks -:) )

    • MS Paint on 08/06/2024 - 14:06
      +2

      You have more than 2 - you deserve to be punished

      WTF are you banging on about?

  • Ave Maria on 08/06/2024 - 17:03

    lack of houmor (or appreciation of it) is obvious - plus you are now out ride rude verging on the side of trolling (something I will not tolerate) - I am cutting you loose

    • miwahni on 08/06/2024 - 21:52

      Who is this aimed at? It's a new post, not a reply to anyone.

      • Ave Maria on 09/06/2024 - 03:13
        -1

        it was a reply to someone that used foul language - I hidden his posts (for me) - I do not tolerate any such behaviour

  • Ave Maria on 08/06/2024 - 17:11

    and I thought Whirlpool had trolls - here is actually worse - I can always use the magic "hide" button - magic button pressed all trolls gone

  • foxmulder on 08/06/2024 - 17:15

    I'm wondering what's the main reason for all these songs and dance customers need to do to get interest? Just to disqualified passive savers?

    • Ave Maria on 08/06/2024 - 17:17
      -1

      Most likely yes - smart savers get around the hoops, so passive savers, older people or anyone not spending time monitoring their savings misses out (you are 100% correct)

      In other words it is just banks being banks and utilising all the dirty tricks in their book (call it Terms & Conditions)

  • Natt on 08/06/2024 - 21:28

    6) Go to supermarket self check out. Split payment. Pay 1c x 6. Use preferred card for remainder. Done in one hit.

    • Ave Maria on 09/06/2024 - 03:10

      I don't even do that. I use a single credit card for all my payments not the bank debit cards. I buy $1 Amazon gift cards online x 5 times and repeat for each bank debit card (I only do it for ING & GSB at the moment and soon only for ING while they still pay 5.5% - beyond that is a chore to do each month - I used to do it for BOQ & for the ME Saver - had enough of that after 2 months) - it is much faster to buy AMAZON gift cards (get used straight up) & does not get any alerts raised for suspicious activity.

      Thanks for all the suggestions, I manage just fine - never said otherwise. That does not mean I have to like all the silly bank term and conditions and accept them as the norm. Using a bank account should not be that complicated & the underway financial review of bank practices agrees with that.

      • Natt on 20/06/2024 - 15:05

        @Ave Maria Ooo the Amazon gift voucher is a great idea. I will steal it!!

        And after researching surcharges on payments etc. I actually totally agree with ' have to like all the silly bank term and conditions and accept them as the norm'.

        You are right, we get used to so much as 'normal' but it doesn't mean it should be :O

    • BigBirdy on 09/06/2024 - 08:55

      Once you have a few or more HISA accounts, you’ll only want accounts where the interest rules can be met with automated transactions. Manual transactions, like card payments, are a hassle and easily missed.

  • Ave Maria on 09/06/2024 - 03:22

    Just an observation. Most savers that shop around experience at least some of the listed T&Cs. Others never do.
    Not everyone shares the same experience or opinions on things. Just because you find something easy it does not mean it is easy for everyone else.
    Don't judge others just by your own experience & do not force your opinions on others. We all have a choise & that choise does not have to be the same as everyone elses..

  • Speckled Jim on 09/06/2024 - 13:41

    Ahh Trollbender ghost account. Gotcha!

    • Ave Maria on 09/06/2024 - 14:10

      it call it a mouse trap - that reminds me I need to go to Bunnings to get one as I saw one running around my living room (at least he will not be chewing on paper money-:)

  • Ave Maria on 09/06/2024 - 14:26

    Quote(s) of the day

    "you either have money or time to spend, consider yourself lucky if you have both"

    "spend money while you can - you can't spend it in the afterlife"

    "money can grow in time, but money itself does not extend time"

  • suti1 on 13/06/2024 - 19:45

    (1) Increase your balance each month
    (2) Increase your balance each month on top of interest paid
    (3) No withdrawals allowed

    Each month, a bank is required to assess how much of its deposits will need to be paid out in cash over the next 30 days. The bank then needs to keep the equivalent amount in highly liquid assets (cash at RBA, government bonds), which also happen to be low returning assets, so that it can pay out the deposits.

    By imposing the restrictions (1), (2), or (3), the bank has a higher confidence that funds wont be withdrawn in the next 30 days and therefore the bank can hold less liquid assets against these deposits.

    (4) Do not increase your balance above X amount

    This exists, with X generally being $250k, because masses of people are less likely to withdraw their <250k amounts even if they thought the bank was in stress, because they are protected by the government guarantee. This again increases the confidence of a bank that these funds are 'sticky' and therefore this means that a bank can hold less liquid assets against these deposits.

    This is the simple answer to your question. A more detailed explanation can be found in APRA's APS210, including withdrawal assumptions on different types of deposits.

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