A simple test will prove the double standard and dubious method of calculation adopted by lenders since 50 years.
Ask them to workout the weekly repayment for a loan of $ 100,000 for 30 years at 8% p.a. It would be $ 169.23 per week.
Now, tell them you want to open a savings account (of any type) depositing weekly $ 169.23 for 30 years.
Ask them to 'assume' if interest rate is 8% p.a. on that deposit account what will be the total accumulated amount of your deposit + interest at the end of 30 years.
Surely the answer will not be $ 100,000. The difference between $ 100,000 and the amount calculated and told by the bank is the FRAUDULENT calculation they do.
Your deposits, including money in Superannuation Fund get only simple interest. No deposit gets compound interest.
Does it mean our money has the smell of sweat and stinks that it treated differently whereas the lenders money is having best fragrance and gets treated with hidden method of calculation?
The normal profit for any bank/lender is by difference in interest rate on lending as against on deposits, eg, if the lending rate is 8%p.a the deposit interest rate would be less, say 5% p.a.
But in reality on LOANS they make the cream by deceptive method of NOT DISCLOSING the COMPOUNDING MONTHLY interest calculation loot this profit!
How could all the learned Judges accept this as “FAIR” (as I took the banks to court on the grounds of (1) unfair terms in contract and (2) NON disclosure of important term of the contract in an understandable manner for the borrowers!!!