In 2022, Jean was doing some trust paperwork and discovered the account had not been interest-bearing. In other words, the trust had received no interest on the $5 million during the three months the bank held on to the money. She complained to the bank that she had not been made aware of this fact, which was of some considerable importance given the amount of money involved. She asked the bank to pay the trust the interest it would have earned if the money had been put in an interest-bearing account. The bank maintained the account had been the right one for the trust’s needs and declined her request. She asked us to investigate.

Our investigation

We examined all the documents relating to the opening of the account, including diary notes of her visit to the bank and an email sent to her following the meeting. There was nothing to suggest it had been Jean's intention to hold the funds in an interest-bearing account. Rather, all the information pointed to the fact she expected to pay the funds to her children straightaway, and that the transfer had been held up for various reasons. We were therefore satisfied the bank had recommended an account type most suited to the trust’s needs, as expressed by Jean to the bank at the time. We found the bank had been clear in explaining how the account worked and the fact it was not interest-bearing.

Outcome

We did not uphold Jean’s complaint.