Capitec interest theft

TheBadMadMan

TheBadMadMan

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Capitec interest ERROR

I have just picked up that Capitec has a mistake on the addition of my interest.


Let me explain:
(Balance) + (Interest) = (New balance after interest) ------ RIGHT?

Ok, so we agree on that I hope.


But what I have picked up is the following: (These are my actual transactional account figures - only the cents are really important here)

(Balance Rxxxxx.44) + (Interest Rxxx.87) = (New balance after interest Rxxxxx.28)

Now according to my calculations it should equal to Rxxxxx.31

So there is a 3 cents difference.

Sure it's only 3c, but do this for a million people and you score R30k out of nothing.

Capitech%20Interest%20mistake.png


The only way I picked this up is that I use a manual app (MyBudgetBook) to log every single cent I spend/earn. So my balance on my app was out by 3 cents and I basically tracked it down to this.

NOTE: This error is only evident on my primary card account NOT on my other linked savings accounts which each got their interest calculated correctly.


Anyone else have something similar happen?
 
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Seems rather unlikely that their bank statements don't add up mathematically. (I've added up loads by hand...though admittedly not capitec as they don't do biz accounts)
 
In principle, interest is calculated daily and capitalised monthly. Did you take that into account? That's the only proper way of calculating if your interest is correct and where it potentially could've been miscalculated.

Also, from what I've seen (more than 1 bank), some transactions don't appear sequentially and may affect (positive or negatively) your interest accrual, e.g. did the interest calc take the sms update fee or payment fee into account?
 
I'd suggest before decrying theft etc, make a ticket with the bank support people, and ask...

Then come back here and let us know what the banks version of the story is.
 
MrR said:
In principle, interest is calculated daily and capitalised monthly. Did you take that into account? That's the only proper way of calculating if your interest is correct and where it potentially could've been miscalculated. ...
Click to expand...
But that showed acumulated interest for the month, didn't it?
 
Tariq786 said:
I have just picked up that Capitec has a mistake on the addition of my interest.


Let me explain:
(Balance) + (Interest) = (New balance after interest) ------ RIGHT?

Ok, so we agree on that I hope.


But what I have picked up is the following: (These are my actual transactional account figures - only the cents are really important here)

(Balance Rxxxxx.44) + (Interest Rxxx.87) = (New balance after interest Rxxxxx.28)

Now according to my calculations it should equal to Rxxxxx.31

So there is a 3 cents difference.

Sure it's only 3c, but do this for a million people and you score R30k out of nothing.

Capitech%20Interest%20mistake.png


The only way I picked this up is that I use a manual app (MyBudgetBook) to log every single cent I spend/earn. So my balance on my app was out by 3 cents and I basically tracked it down to this.

NOTE: This error is only evident on my primary card account NOT on my other linked savings accounts which each got their interest calculated correctly.


Anyone else have something similar happen?
Click to expand...

What was Capitec's response to your complaint?
 
Theft is the wrong word, click bait, but wrong. My appologies.

Re Capitec response. - They have yet to respond to me. I'll give them till Monday.
 
Keep us updated, I'm interested to know how it works.
I'm guessing there is a rational / reasonable explanation.
The interest is obviously calculated at a specific time, based on the balance in your account at that time. If the balance in your account changes between the interest calculation and the actual interest amount being inserted, you might find an adjustment is made to account for this difference. Or something like that...
 
So Capitec responded:

Good day Mr XXX

Thank you for contacting us.

Kindly be advised that your calculation is correct; the adjustment of R0.03 was made on your account.
Feel free to obtain a printed statement at your nearest branch.

We do apologise for the inconvenience caused.

Should you have any further queries in this regard, you are more than welcome to contact client care on 0860 10 20 43.
Click to expand...


My response:
Hi

Thank you for the response.
My real concern is how something like this happened?
Can you perhaps elaborate as to what caused this?

Thank you
Click to expand...

Capitec:
Good day Mr XXX

Thank you for your further reply.

The interest on a savings account would depend on the balance on the account.

Interest is calculated on a daily basis and added to your account balance on a monthly basis.

During the last few days of each month the system will calculate the amount of interest the client is liable to receive at the end of the that given month, however when the system does this calculation it takes the clients full current balance into consideration including pending transactions such as point of sale purchases, therefore when the actual interest credit is made to the clients account it may adjust before or after dependant on when the external instruction banks the point of sale purchase on their end.

This may occur in the future again, however interest/credits accrued will always be added at the end of the month.

I trust that the above explanation has provided you with more insight and clarity.
Click to expand...
 
Going by the above, it makes sense to me but then why not change the value shown on the transaction history?
 
I agree with OP.

3c is a pittance but do it a million times over to a million people and it is a nice kitty indeed.


Banks are thieves by default.
 
lerouc said:
Get a new hobby.
Click to expand...

Why? I've done something similiar for about 15 years... besides unplanned hiccups, I know exactly what I have in my account in 3 months time.

It makes budgeting far ahead extremely easy... and you know exactly what you're worth.

Takes me about 30min a month to balance my accounts and investments.

You'd also be surprised how many times I've caught one of my previous banks doing "adjustments".
 
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xrapidx said:
Why? I've done something similiar for about 15 years... besides unplanned hiccups, I know exactly what I have in my account in 3 months time.

It makes budgeting far ahead extremely easy... and you know exactly what you're worth.

Takes me about 30min a month to balance my accounts and investments.

You'd also be surprised how many times I've caught one of my previous banks doing "adjustments".
Click to expand...

I just ignore the fool. If he had asked me why I do this then I would have explained, instead he mocks me.

If only he knew the power and the advantage this kind of insight/keeping your finger on the pulse gives you in your personal finances.
 
Tariq786 said:
I just ignore the fool. If he had asked me why I do this then I would have explained, instead he mocks me.

If only he knew the power and the advantage this kind of insight/keeping your finger on the pulse gives you in your personal finances.
Click to expand...



Agreed, people should have a clue about finance management before commenting.
 
backstreetboy said:
Lol complaining about 3c...
+100
Click to expand...
So what if they did it again next month and the month after? What if it was 5c? What if it kept going for 20 years?
Wouldn't that add to more money?

What if it was R20 instead? Or R100?


The value doesn't matter, it's that the system is at fault, which is what the complaint/this discussion/thread is about.
 
Not a comment on whether the complaint is valid or not, but can you imagine the guy at the bank:
Boss man - "Ok Joe, please credit Mr Tariq's account for 3c..."
Joe - "Darn it, I have to fill in form RO72 and FL99, walk up to processing, etc etc for 3c?? There goes my lazy Friday plans :mad:"

:p
 
Archer said:
Not a comment on whether the complaint is valid or not, but can you imagine the guy at the bank:
Boss man - "Ok Joe, please credit Mr Tariq's account for 3c..."
Joe - "Darn it, I have to fill in form RO72 and FL99, walk up to processing, etc etc for 3c?? There goes my lazy Friday plans :mad:"

:p
Click to expand...

Or - darn it - someone picked it up... there goes the extra funds we were skimming from our clients for annual bonuses.

I wouldn't mind a situation where I could take a cent or two from every account at a bank monthly.
 
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