The Banks are screwing us down now. They may pay us the profits later do you think?

I asked one of my bankers a fairly simple & logical question. One I would have expected the media to pose before now. It was this:

In these times when interest rates are falling, those of us with fixed loans are required to pay a break fee to repay the loan early. The reason is that the bank looses money because they had to buy the funds at the rate prevailing at the time the deal was done. Fair enough. I can see that is reasonable. However, when the reverse situation is present and rates are rising, we never hear of people who repay the loan sooner than the fixed period ends, receiving a payout because the Bank has made a windfall profit. Wouldn’t it be reasonable to expect that both sides of this arrangement was honoured by the Bank, and not just the side where the Bank is out of pocket? It’s inequitable and verging on usury how the Bank dictates that the customer will cover the losses it suffers, but is not compensated in any way for profits on the other end of these deals.
This may sound like a gripe, I guess it is really, but it’s a serious question I would like a serious answer to.

My Banker has not answered this question as yet. I will press him soon. Ask your bank the same question, in your own way of course, and press them for an answer as well. I will be interested in feed back on this topic. Any Bankers out there?

You can contact you bank through these links:
ANZ-National, ASB, BNZ, Kiwi,TSB, WestPac

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