LM
Linda M

1 reviews | Active since Feb 2019

19 Feb 2020, 12:44

Misleading interest rates

On 7/8 Nov 2019, I visited the Alberton branch of African Bank with the intention to open new 3 & 6 months fixed investments.During my discussion with the sales consultant, Nonhlanhla Dlamini, I indicated to her that I have seen the advertised interest rates on the African Bank website as follows: 3 months fixed deposit :7.49% (interest pay out on expiry) - 7.70% (annual interest pay out). 6 months fixed deposit : 7.97% (interest pay out on expiry) - 8.13 %(annual interest pay out). The sales consultant checked the website and confirmed that these were, in fact, the interest rates offered by the bank., She also called and spoke to someone from their head office to confirm these interest rates. At this stage I was quite happy and instructed her to continue and open the respective fixed deposits. To my surprise, when checking these fixed deposits online two days later, I noticed that the interest rates differed from the ones quoted on the African Bank website and definitely not what I expected. I then visited the Alberton branch of African Bank to protest about this anomaly. The sales consultant then called their head office and spoke to Nomsa, who was adamant that the rates appearing on my fixed deposits were, in fact, correct; - it was possibly on this premise that African Bank decided to repudiate my claim. She suggested that I should lodge a formal complaint to the bank which I did. As a pensioner, I shop around for the best interest rates on the market, to maximise my returns. In this case, I feel that I was short-changed by African Bank as the interest rates advertised on their website differed from the ACTUAL rates applicable to my investments. This seems to be misleading advertising. It is almost 2 months since I lodged a formal complaint with the Banking Ombuds, I hold my breath on that one. I'm very disappointed in the manner this entire debacle was handled by African Bank.

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