ICICI - negative interest?

Dan29

EDIT: Mystery solved: my Term Deposit account was opened 26 February but the funds weren't transferred until 4 March, so the interest payment for February must have been higher than it should have been. Will make sure I check the interest payment on the Term Deposit account is correct next February


ORIGINAL MESSAGE: Has anyone else found that their HiSave balance has gone down with this month's interest payment?! I seem to be £12.54 worse off when I was expecting about £20 in interest.

DocProc

HiSAVE, rather stupidly, pay interest in advance!

If you make a transfer out of your HiSAVE account, say into a Term account or even into your linked account and do this at the very end of the month then you will find that they will have overpaid you interest for just a few days at the end of the month.

This is an absolutely stupid thing to do and they are creating loads of demanding and headache-giving problems for themselves by doing it.

Just imagine how you explain all of this to a customer. The explanation of it is so complicated.

So.....they need to take this overpayment of interest back again, as a correction, and will do so at the end of the following month.

When you actually try to work out your interest for this 'following month' (the one where they have corrected and taken the overpayment out), well, at first glance, it looks as though interest has been underpaid.

It's not until you take the two months together and take account of the days required to do the withdrawal transaction, do you find out that all is actually quite alright, and they have actually paid the correct amount of interest after all.

This kind of thing has happened to me twice now.

This damn bank is alright until things begin to go wrong. That's when you go into a state of despair, you find their staff are just not up to sorting things out and that they cannot communicate well enough about it to the customer either.

The people dealing with the public have no authority. They are not Internet aware. I get the impression too, that lots of the account managers just cannot be bothered to do their job thoroughly and they don't have any authority to correct things either.