Not upheld: interest calculation and clarity of terms and conditions complaint against Atom Bank PLC

Decision detail

Summary

Mrs C complained that Atom Bank unfairly applied the Withdrawal rate to her entire September monthly interest period when she withdrew all funds and closed her savings account, rather than applying the Reward rate up to the date of withdrawal. She argued the terms and conditions were unclear and that she would have timed her withdrawal differently had she understood the consequences. Atom Bank maintained it had applied the interest correctly in accordance with the terms and conditions. The Ombudsman found that the terms and conditions, account summary information sheet, and website all clearly stated that the Withdrawal rate applies for the whole of the monthly interest period if any withdrawal is made or the account is closed, and therefore Atom Bank acted correctly. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman found that the terms and conditions clearly state that if a withdrawal is made or the account is closed, the Withdrawal rate applies for the whole of that monthly interest period. This was further confirmed by the account summary information sheet which stated 'if you do make a withdrawal in the month you will receive the lower interest rate for that month' and the website explanation. The fact that interest is calculated daily does not contradict this approach, as the daily calculation determines the amount but the rate applied is determined by account activity in that month. The Ombudsman was satisfied that Atom Bank applied the Withdrawal rate correctly and in accordance with the terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website