UDB version 8.01.005

db2 connect to database user userid using password
gives me
SQL30082N Attempt to establish connection failed with security reason "24"
("USERNAME AND/OR PASSWORD INVALID"). SQLSTATE=08001

But
if I do
db2 connect to database user userid
and then enter the password it works fine

what could be the error ?

Urgent Help needed.

try enclosing the db2 command in quotes:May be your password contains characters that have special meaning to the shell.

n_i is right. I have this same problem , despite using double quotes.
The password contains the $ sign. Try to use single quote

regards

Mujeeb