Std Bank AccessFinance... sneaky

[TheShadow]

I’ve been scanning through the vehicle finance section. Std Bank are so so sneaky.

Why was the benefit reduced on my Access Finance Account
The current economic climate has placed us in a position whereby we are no longer able to continue with this product in its current form and as a result, have reduced the benefit. The other option was to close all the accounts but we felt it better to rather reduce the benefit and thereby allow those people that feel that the benefit is still significant enough to keep the account open.

How will this affect me?
The current benefit is at a ratio of 1:1: in other words for every R1 placed into your Access Finance account, you receive R1 interest free on your Vehicle and Asset Finance deal. This benefit will now reduce to R0,75 for every R1 deposited into your account.

This means that they are scoring by 25% on any amount extra you put in. They used the ‘current economic situation’ as an excuse, that’s shocking… how is putting extra money in affected by the economy? Funny how they don’t publish this openly.

How is the benefit allocated if I have more than one deal?
The benefit will be split proportionately from the highest to the lowest capital outstanding balance using the same rate as each vehicle finance agreement.

Can I choose what benefit amount goes to what deal?
No, our system automatically splits the benefit from the highest to lowest capital amount owing. If you would like this option then you would have to open separate Access Finance accounts for each deal. This, however, will cost you more in bank charges.

This is even more ingenious. By allocating the interest saving against the larger loan first, they are saving themselves in that larger loans tend to have lower interest rates, so you save less this way. Then they say you have to open separate AccessFinance accounts if you want to decide which loan gets the money first.

So when banks around the world come crashing down they get no sympathy from me.

 

[Colin62]

Thanks for posting - I'm actually looking at getting finance from them at the moment, and I think I'll trawl around a bit more after reading that.

 

[TheShadow]

i'm not sure if Wesbank has changed their rules like Std Bank has but I've used them before for this.
i think it's called the WheelsPlus product.

 

[Nerfherder]

People who don't know what they are talking about shouldn't start threads.

 

[ALFAHOLIC]

People who don't know what they are talking about shouldn't start threads.

LMAO...SB employee?

 

[w1z4rd]

I know I am being nailed by SB costs, moving to Capitec at the end of the month.

 

[FrancTheTank]

... on Previous Capitec bank comment
Because they have ATMs everywhere - at till points, ONLY.
(so do other banks)
This is enough for me not to move to them.

 

[supersunbird]

... on Previous Capitec bank comment
Because they have ATMs everywhere - at till points, ONLY.
(so do other banks)
This is enough for me not to move to them.

And like i think i told you ages ago in another thread that you can use any ATM if you are with Capitec and pay just R7 for the whole transaction, no matter the amount withdrawn. These days I don't care what brand the ATM is, I just use it...

 

[Nerfherder]

LMAO...SB employee?

No, not actually... but I work in the industry.

 

[w1z4rd]

... on Previous Capitec bank comment
Because they have ATMs everywhere - at till points, ONLY.
(so do other banks)
This is enough for me not to move to them.

I dont need ATMS, I need free debit card purchases... so I dont have to carry cash on me. Thats how I deal with money. Unless I really have to, I never want cash on me. Debit cards are so so convenient.

 

[Colin62]

No, not actually... but I work in the industry.

You obviously disagree with the OP, do you feel like letting us know why?

 

[Nerfherder]

You obviously disagree with the OP, do you feel like letting us know why?

The rate is based on the interest rates being high.... they are not high anymore so its not a viable product. So instead of ending the product they still offer it at a reduced rate.

Its quite simple... I can't see what the issue is ?

Its like any investment account... when the interest rate drops they drop theirs as well.

 

[Colin62]

For me the issue is that (on similar products) when I deposit R100 (assuming an interest rate of 12% for simplicity) I would expect (roughly) R1 reduction in my interest for the month, not R0.75. This is independent of what the ruling interest rate is.

 

[phiber]

The rate is based on the interest rates being high.... they are not high anymore so its not a viable product. So instead of ending the product they still offer it at a reduced rate.

Its quite simple... I can't see what the issue is ?

Its like any investment account... when the interest rate drops they drop theirs as well.

Agreed, still a good product if you are looking to buy a car. When loaning money, look at ur cost v benefit and not the banks. Some banks might have found a way to make more, and still benefit you more.

 

[TheShadow]

The rate is based on the interest rates being high.... they are not high anymore so its not a viable product. So instead of ending the product they still offer it at a reduced rate.

Its quite simple... I can't see what the issue is ?

Its like any investment account... when the interest rate drops they drop theirs as well.

thanks for eventually explaining... much like a bank employee indeed.

why isn't this logic used with home loans? or am i being screwed over there as well?

 

[milomak]

it's not really sneaky if they say upfront they reserve the right to adjust. that's the key thing.