Bank correctly notified interest rate change

Lending restrictions,
Simon deposited $700,000 in an interest-bearing transaction account. He wanted ready access to the money because he was looking for a property to buy. In the end, however, he bought nothing. Simon subsequently discovered that deposit interest rates had fallen significantly, and he considered the bank had breached a duty to him by not directly notifying him of the fall in rates.
December 2018

Simon sought compensation for lost interest. He also thought banks should put the prevailing interest rate on bank statements, a step that would be of particular use to older customers who were not comfortable with internet banking. 

Our investigation

We found the bank notified customers of changes to deposit interest rates through notices in branches, on its website and in the public notices of national newspapers. In doing so, it complied with its obligations under the Code of Banking Practice, to which it was a signatory.


We found there were no grounds for recommending compensation. We did, however, say we would pass on his suggestion about including the current interest rate on statements to banks.

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