Just wanted to raise awareness to what I think is a hidden charge from Bankwest. They spruik their smart ATMs as instant deposit and allow you access to the money immediately i.e. you can transfer to another account or bank instantly. What is not clear is that if you make the deposit after hours it is technically not credited to your account until the next business day. However they still allow you to transfer the money out which results in the account being overdrawn and being hit with a 12.88% interest rate until the money officially clears. The charges are generally small so most people wouldn’t bother but potentially lucrative for the bank. I only noticed because I deposited on a Friday night and transferred out straight away which resulted in an interest charge over the weekend.
Thanks for the warning. The interest rate seems to be extraordinarily high considering current interest rates.
The Bankwest website about Smart ATMs states…
Instant Deposits
Our Smart ATMs allow you to deposit cash and cheques into your account or credit card instantly. You can deposit up to $10,000 in cash and up to 50 cheques without an envelope.
You can also make a payment into another Bankwest account by entering their BSB and account number or credit card number. Remember, a limit of $1,000 cash applies.
If the account is your account (assume linked to one’s credit/debit card), then it is clear that the funds should be instantly available as soon as they are deposited using a smart ATM. There is no indication that deposits to one’s own account outside business hours is deposited the next business day (this would not be instantaneous).
I would be disputing any interest charged as a result of funds not being deposited instantly into one’s own account and request that this interest be reinbursed. Not being instantly in you account is misleading or false advertising under Australian Consumer Law.
If it was deposit say into another Bankwest account or external account (say to pay a bill or possibly not into the account linked to the credit/debit card used for making the deposit), then the website does not state it is instantaneous. In such case, the deposit could be delayed and Bankwest may beleive it has a right to charge interest if the funds are deposited the next day and interest is accrued.
I wonder what is buried away in the fine print concerning their banking terms and conditions?
Were the deposits cash, or cheque’s, or other?
I have disputed the interest charges and they have reversed it, although it took a while. They also said I would probably be charged interest again if I deposited and withdrew after hours. The money was deposited to my own account and they argued that my account was overdrawn, even though the deposit was done before the withdrawal. My point was that the bank would not allow a withdrawal if there were no funds in there as i don’t have an overdraft facility.
It was a cash deposit
