Couldn't resist: banks break promises to customers to keep rates on accounts
Banks are not fulfilling their obligations to maintain interest rates on deposits, Izvestia found out. For example, when opening an account, customers are assured that profitability will not be reduced for at least two months, but soon the conditions will be adjusted. While the key rate was high, financial organizations worked with citizens through ultra-attractive rates, and now they have changed tactics. At the same time, if the term and the interest rate were clearly specified in the contract, then the reduction would be a violation, and an error in consultation would be a misselling. How to deal with clients in such a situation is described in the Izvestia article.
How Banks Cheat Customers with Welcome Rates
Credit institutions are reducing welcome rates on savings accounts, despite promises to customers to keep them. Experts told Izvestia about this.
Market participants launch promotions or welcome periods, promising the client an increased rate fixed for a certain period, most often for one or two months. These conditions are stipulated when opening an account and are sometimes confirmed in a conversation with the operator, said Vladimir Chernov, analyst at Freedom Finance Global. However, in practice, it is not uncommon for banks to change the rate earlier than the promised period expires, he added.
— Formally, financial organizations hide behind the fact that the contract or product rules specify that the rate can be changed unilaterally. However, from the point of view of the customer's perception, this looks exactly like a breach of promise," the analyst explained.
In the case of savings accounts, this is now a regular practice, said independent expert Andrei Barkhota. At the same time, an adjustment is unacceptable for term deposits, because this is how the rate is prescribed in the contract, he said. At the same time, as the Association for the Development of Financial Literacy explained to Izvestia, according to the law, an oral consultation must comply with what is written in the contract. Otherwise, it's a misseling.
Users of the national rating " <url>" also talk about the violation of their promises by credit organizations. According to one of the complaints, on August 30, a customer opened a Save savings account with a 19% discount in Yandex Bank. The specialist assured the person that such conditions would be in effect until October 31. However, on September 15, the rate was lowered to 17%. Another customer of this credit institution also indicated that he was attracted by the rate of 19% per annum for 62 days for new customers, which was the highest among other market players. However, the day after the account was opened, the rate was reduced to 17% without warning.
An MTS Bank cardholder complained about a similar situation — he opened a savings account on August 13 with a welcome rate of 19% for the first two months. However, in early September, the client was paid an income of 5%, the remaining interest remained under consideration, the timing of which is not specified.
Izvestia sent a request to these financial organizations. As indicated in the press service of MTS Bank, updating its savings proposals depending on changes in the key interest rate is a standard practice in the market. If the client wants to avoid fluctuations in the rate, he should open a fixed-term deposit during the entire deposit period.
Why are banks lowering interest rates on savings accounts
The reason for the decrease in guaranteed promotions is to adjust the key one, explained Alla Khrapunova, deputy head of the project of the Popular Front for Borrowers' Rights. While it was high, banks worked with the customer base through super-attractive rates on such a convenient tool as savings accounts. However, then they began to reduce them.
— After reducing the key rate, many commercial credit organizations begin to gradually reduce rates on their products, such as deposits and savings accounts, in order to maintain their profit margin, — said Maria Ermilova, International Financial Adviser, Associate Professor of Finance for Sustainable Development at Plekhanov Russian University of Economics.
Another reason is the change in the basic conditions for savings accounts at the bank itself, Andrei Barkhota added. This means that the rate can decrease at any time, even if the key rate has not changed.
From the legal side, it is legal to reduce interest rates on savings accounts, but from the point of view of customer perception it looks like cheating, especially if managers or promotional materials created the impression of guaranteed profitability, said Vladimir Chernov from Freedom Finance Global. The FAS and the Central Bank have repeatedly pointed out to banks the need for transparency and the inadmissibility of ambiguous promises. And the regulator considers such cases risky for the reputation of financial organizations.
At the same time, Sovcombank and Alfa Bank noted that the welcome rate should be maintained for the entire promotional period. For accounts opened in August and early September, the 18% rate is valid until the end of October, Alfa Bank's press service explained.
Izvestia also asked the Bank of Russia how widespread such actions of credit institutions have become after the key reduction from a record 21%. The regulator pointed out the importance of carefully reviewing the terms of the agreement, given that banks do not fix rates on savings accounts, unlike deposits, for which the rate and expiration date must always be clearly defined.
How to effectively manage your savings
To maximize the benefits of savings, you can diversify your savings portfolio and place your free funds in deposits, recommended the head of savings products at Dom Bank.Russian Federation" Natalia Mulganova.
In addition, customers who were attracted by high interest rates that did not meet expectations can transfer money to another bank with better conditions, as they can close their savings account without losing interest, said Igor Dodonov, an analyst at Finam Financial Group. You can also put money on an urgent deposit if it is unlikely to be needed for a certain time.
If a client feels misled or dissatisfied with the changes, they have the right to contact a credit institution for clarification, recalled Maria Ermilova from Plekhanov Russian University of Economics. In addition, a consumer of financial services can file a complaint with the Bank of Russia, the Central Bank added.
To file a complaint, evidence is needed: audio recordings of conversations or a screenshot of chat correspondence, warned Elman Mehdiyev, CEO of the Association for the Development of Financial Literacy. Secondly, you need to re-examine the contract: is there a clause in it that the bank can change the rate at any time.
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