MASSIVE EXPLOITATION ON FIXED TERM ACCOUNTS

I’m heavily aggrieved by this huge imposition I was placed in.

April 2020, I invested a sizeable amount of money into a 5 year fixed deposit account (earning 9% per annum).

Before I invested the funds, I tried to find out (telephonically via a consultant at Capitec) what the admin / penalty fee would be should I want to withdraw earlier.

The person informed me that they could not say as it all depended on the amount and time invested and how far you have invested for. I also asked if they could give me ANY (thumb suck) indication as I need to make a decision. They could not based on the amount I wanted to invest.

Once you press the “invest” button on your internet bank profile to FIX that money, you are given a bunch of documents you have to agree on / sign (with an "x"), but nowhere is there any mention of the ********** penalty fees involved should you opt to exit earlier. This week, (18 October 21) I went to a Capitec branchto ask if I could release the money and surprise, there is a R91000 penalty fee for early withdrawal. If I had known up front of this MASSIVE EXPLOITATION, I would never have done this transaction and rather invested in say, an investment with say, Stanlib where I could get almost the same interest rate, but with zero penalty.

I feel that this situation is purposefully NOT discussed with the client and no one at Capitec that I spoke to (not even supervisors) can give you any clue/ idea on the penalty fees due.

How many people have been caught out by this? It might even be smaller penalty amounts and because poeple get desperate they just have to accept the penalty fee.

Herewith a link to see what they offer where there is no mention of penalty fees: https://www.capitecbank.co.za/global-one/save/single-deposits-option-fixed-term-savings-plan/

A twitter feed where a client asks a Capitec consultant what the “admin fee” is, also no indication of any penalties, just an admin fee. https://twitter.com/capitecbanksa/status/***?lang=en

Unfortunately “Contacting Capitec client care” also bears the same result. They cannot tell you.

Would appreciate your help please as I’m hitting a wall at Capitec as no one wants to answer.

How Convenient!

Sincerely Disgruntled Account holder