Is interest on deposits paid to companies required by law?
Is there a law that requires companies to pay interest on deposits? I have provided CI$200 deposit to both Cable and Wireless (now Flow) and CUC and realise I only receive interest on deposit from CUC. I have never gotten any interest from Flow, only continual crappy service.
Auntie’s Answer: The quick answer is no, there is no law that requires companies to pay interest on deposits. I asked CUC why they paid interest and they confirmed that there was no legal obligation for them to do so.
A spokesperson said, “As a good corporate citizen and recognising that we hold deposits for a long time, customers do get interest on their deposits. This has been the case for quite some time and it is now included in our 2008 Transmission & Distribution license, Section 14, which you can find on our website.”
So there you have it.
Category: Ask Auntie
For information, Flow does pay interest on deposits held on account. This interest is refunded yearly as a credit to your phone bill at the end of Flows fiscal year. Don’t be so quick to bash Flow.
Flow will allow some banks to hold their deposits for you. As a result you may get interest from your bank with the deposit