update on changes due to system development
key information
After the development is implemented, the following business changes are expected to be introduced from the second half of April 2022:
foreign currency payment orders
Your foreign currency payment orders will be accepted even if you do not have sufficient funds available on your account at the time of the order. If the funds are received on the same day by the time specified in the Announcement, the order will be executed; otherwise the order will be rejected due to insufficient funds.
fees and interest owed to the bank
If your account has insufficient funds to pay the fees of the services you use and interest, it will be replenished from your other accounts held with K&H Bank. Your loan and other debts to the Bank may also be settled from your other accounts held with K&H Bank (excluding joint accounts).
crediting of incoming transfers
As regards the discounts linked to regular credits to the account, after the implementation of the innovation only the items received by the 20th of the month will be considered as credits. If in the month the innovation is implemented you were to be adversely affected by the change in the crediting test date, the discount for that month will be credited to your account on the first business day of the following month, regardless of the date of receipt of the transfer.
interest calculation
In cases where the last day of the month is a non-business day, the interest calculation date will be moved to the business day preceding the non-business day.
(For example: changes to interest periods in April 2022:
- previously: 1-30 April 2022; 1-31 May 2022
- after the development: 1-29 April 2022; 29 April-31 May 2022)
The change will affect:
- interest calculated on demand deposits
- interest payable on a negative account balance
- interest payable on overdrafts
You will not be affected by any adverse change, as any difference between the old and new calculation methods is negligible, so any negative difference estimated for a five-year period will be credited to your account as a one-off amount in the month following the implementation of the development.
fee conversion
If you initiate or receive a transaction involving a currency conversion, the associated fees will be settled at the MNB middle rate instead of the previous K&H FX I middle rate. We will also apply the MNB middle rate to all regular and ad hoc fees if the currency of the relevant fee type as specified in the Announcement is different from the currency of the account debited.
blocking
The service of blocking amounts at the customer’s request will be discontinued from the day the development goes live.
closing the account
When an account is to be closed, if there is any collection order submitted on the basis of an official transfer order, a remittance summons or a letter of authorization is registered on your payment account, because of the rejection process of that order the account closing cannot be completed immediately; it may take longer, with the stipulation that the Bank will be able to close the payment account on the next business day at the earliest.
bank account statements
Our bank account statement will be renewed in both form and content. The most important new features are as follows:
- The free basic life insurance linked to a K&H Retail Bank Account opened/applied for before 1 April 2011 will no longer be shown on the bank account statement. In the future our call center will provide information on the life insurance service.
- The details of term deposits will be shown on the maturity accounts instead of the previous term deposit accounts.
- Contractual interest and late interest will be shown uniformly as interest transactions. The narrative information section will provide details on the interest items and amounts making up the amount debited.
- Reversal transactions will be shown with the description and narrative of the original transaction, the only difference being the +/- sign of the amount booked.
Please be advised that at the same time we will also make changes to the Announcement and the General Contracting Terms and Conditions, which will take effect simultaneously with the implementation of the developments.
payment orders
Your foreign currency payment orders will be accepted even if you do not have sufficient funds available on your account at the time of the order. If the funds are received on the same day by the time specified in the Announcement, the order will be executed; otherwise the order will be rejected due to insufficient funds.
Your direct credits sent inside or outside the Bank that are rejected will be credited immediately, item by item.
loan repayments
Your repayment instalment due will not be blocked on your account on the morning of the due date, but will be deducted from your account at the end of the due date, as before.
If there are insufficient funds on the repayment account, your debt will be deducted from your other accounts held with K&H Bank after the due date.
negative account balance in the case of interest and fee payments
The interest and fees related to your account (including any overdraft facility) will be debited to your account without a verification of sufficient funds. If you do not have sufficient funds on your account, this may result in a negative balance (in excess of the amount of your outstanding overdraft facility). Your negative account balances will be settled from your other accounts held with K&H Bank.
interest calculation
In cases where the last day of the month is a non-business day, the interest calculation date will be moved to the business day preceding the non-business day.
(For example: changes to interest periods in April 2022:
- previously: 1-30 April 2022; 1-31 May 2022
- after the development: 1-29 April 2022; 29 April-31 May 2022)
The change will affect:
- interest calculated on demand deposits
- interest payable on a negative account balance
- interest payable on overdrafts
You will not be affected by any adverse change, as any difference between the old and new calculation methods is negligible, so any negative difference estimated for a five-year period will be credited to your account as a one-off amount in the month following the implementation of the development.
The different delays related to your account will be treated uniformly as overdrafts and therefore the late interest on the overdrawn amount will be uniform. Once the interest rates have been harmonized, you will pay the lowest fixed rate of 6% interest on any overdue amounts, regardless of where they result from.
fee conversion
If you initiate or receive a transaction involving a currency conversion in the future, the associated fees will be settled at the MNB middle rate instead of the previous K&H FX I middle rate. We will also apply the MNB middle rate to all regular and ad hoc fees if the currency of the relevant fee type as specified in the Announcement is different from the currency of the account debited.
loans taken over for settlement
In the case of loans taken over for settlement, the repayment items will be transferred to the employer one by one and immediately. The transfers will be trackable on the bank account statement.
product names
The names of some products will change; the changes are set out in Annex 12 of the Corporate Announcement.
closing the account
When an account is to be closed, if there is any collection order submitted on the basis of an official transfer order, a remittance summons or a letter of authorization is registered on your payment account, because of the rejection process of that order the account closing cannot be completed immediately; it may take longer, with the stipulation that the Bank will be able to close the payment account on the next business day at the earliest.
bank account statements
Our bank account statement will be renewed in both form and content. The most important new features are as follows:
- Some of our transaction codes and names will change once the development is implemented. If you export the bank account statement and account history available in the K&H Electra system for further electronic processing, please note that a new transaction code list will take effect after the system change, which can be downloaded, as usual, from the K&H Bank website at https://www.kh.hu/web/eng/electra under the “useful” menu item.
- The details of term deposits will be shown on the maturity accounts instead of the previous term deposit accounts.
- Contractual interest and late interest will be shown uniformly as interest transactions. The narrative information section will provide details on the interest items and amounts making up the amount debited.
- Reversal transactions will be shown with the description and narrative of the original transaction, the only difference being the +/- sign of the amount booked.
Please be advised that at the same time we will also make changes to the Announcement and the General Contracting Terms and Conditions, which will take effect simultaneously with the implementation of the developments.