Interest rate change breaks your own T&Cs?

Your own terms and conditions (pages 17 / 18) say you’ll provide at least 30 days notice if you change how you calculate and pay interest?

Surely you’ve just given us 6 days notice at best. Explain?

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Hi @JM76 - we have not changed the way we calculate interest and we are still paying it in the same way also. What has changed is the rate, and the amount on which we pay interest. Technically for this we only need to give a day’s notice, but we like to give a week.

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Good pick up JM.

@CaptainXinja you have absolutely changed more that the rate. You have changed how you calculate interest And the interest rate. Previously you calculated interest on balances up to $245k. From next week you will only be calculating interest On balances up to $150k. This clearly requires at least 30 days notice.

I see what you are saying, but I don’t follow fully.

Doesn’t the thing in the T&C just imply the behind the scenes processing of how it works? Calculating interest on $150k or $245k or $10k would be an identical process. No?

Hi @NeoNerd & @JM76

This is how we calculate interest:

  • We divide the end-of-day balance by 365 and multiply the result by the interest rate
  • We do that daily

This is how we pay interest:

  • We pay the sum of each day’s calculation directly into the Stash account on the last day of the month
  • The last day of the month’s interest is NOT paid on that month but included in the next month’s total as per the terms and conditions

As per the T&Cs, “there may be different interest rates applicable to different portions of your Stash balance” - which can include a 0% tier. So next week, anything above $150,000 will move to a tier of 0%.

So we are not changing the way we calculate or pay interest. Please find an additional extract from our T&Cs below for reference:

“Interest is calculated daily (on the balance of your Stash at 12:00am (midnight) and credited to your Stash monthly in arrears on the first day of the following month. Xinja will calculate the daily interest rate by dividing the annual interest rate by 365 (even in a leap year). Interest paid for the month is inclusive of the 1st day of the month, and exclusive of the last day of the month. Therefore, if you make a transfer to your stash on the last day of the month, the first time interest will be credited to your Stash for that amount will not be the first day of the next month (the next day) but the first day of the month after that (for example, if you make a deposit to your Stash on Sunday, 31 October, you will receive your first interest payment on that deposit on Monday, 1st December).”

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You do not currently have a 150k tier. You are introducing a new tier and that is a change to how you calculate interest. See ‘Do you pay interest in Stash’ on your website. It’s very clear to me you should have given 30 days notice and i am very confident Www.afca.or.au would take the same view. Neo bankS 86 400 and UP recently made similar changes - one down to max $150k and the other removing max amount and both have more than 30 days notice.

@NeoNerd - I am unclear how you are connecting the calculation of the interest to what the interest rate is.

Xinja can change the rate to 0.1%, 10% or 1000000% and it would be the same. They might have no tiers or 50 tiers - a tier is just a construct to help package things together.

The exact numbers differ as rates change, but the process by which those numbers are used (and what is covered in the T&C) has not.

What 86 and Up have or haven’t done is not relevant to whether Xinja have gone against their own guidelines, which it appears they have not.

I disagree - they added a new tier. That’s a change in structure not just changing a rate.