1 reviews | Active since Oct 2016
FNB *****ing extra money paid into Homeloan BONDs to reduce interest
I have a bond with FNB. I have extra money which I pay into the bond to reduce the interest, on a monthly basis.
On 1 Feb 2020, FNB removed an amount equivalent to my Bond monthly installment from the extra money I have kept in the bond, as well as taking the normal Bond installment from my savings account. So in effect they are now holding twice the amount of money they should have from me this month.
When I contacted them to find out what has happened they indicated that this was done to ensure that I don't miss a payment. They indicated that the extra money would be back in my bond within 7 days. I have an email from them to this effect.
Now this in fact defeats the purpose that I keep extra money in the bond, as every day that the money is missing, there is less interest it can offset.
What can I do about this to ensure that it does not happen in future?
I am not a high risk to the bank, as I have never missed a bond payment. My credit record is "Excellent" according to TransUnion (of which I subscribe as a member).
I know many people will tell you that this, but for me it is true. So FNB has no reason to believe that I will miss a payment.
I would like to thank FNB for taking the time to explain the situation to me.
What has been happening is that the extra money in my homeloan (they term "prepaid") is suddenly reduced in amount every month for 7 days, and then returns back to the original amount. The missing money has not gone anywhere, it is simply made "unavailable" for withdrawal, which makes it appear that they money has been taken. FNB reserved some of the extra money ("prepaid") in event that should the Bond monthly installment debit not go through they are still certain of receiving the bond payment.
The bond reduction as a result of the extra money that I paid into the bond, is not affected.
I would like to thank FNB for taking the time to explain the situation to me.
What has been happening is that the extra money in my homeloan (they term "prepaid") is suddenly reduced in amount every month for 7 days, and then returns back to the original amount. The missing money has not gone anywhere, it is simply made "unavailable" for withdrawal, which makes it appear that they money has been taken. FNB reserved some of the extra money ("prepaid") in event that should the Bond monthly installment debit not go through they are still certain of receiving the bond payment.
The bond reduction as a result of the extra money that I paid into the bond, is not affected.