Macquarie Bank admits to failures on savings account welcome rate
Key takeaways
- Macquarie Bank failed to clearly communicate a welcome rate offer on savings accounts in 2021-22.
- The bank may have to pay a proposed $14 million penalty. It has also already paid customers $8.8 million in remediation.
- What's next: the case highlights the often confusing nature of the conditions attached to high-interest savings accounts.
Macquarie Bank has admitted in the NSW Supreme Court that its "welcome rate" on savings accounts was unclear or confusing to customers.
The Australian Securities and Investments Commission (ASIC) took the bank to court over the way the bank promoted the welcome rate, and its failures to provide clarity, internal guidance and swift complaint resolution.
Macquarie Bank and ASIC jointly proposed a fine of $14 million to the court. Separate to this the bank has also repaid $8.8 million to almost 40,000 customers.
ASIC alleged that Macquarie's welcome rate, offered between December 2021 and September 2022, appeared to be a bonus rate but was in fact a rate that applied instead of the standard or base rate.
"Customers should not have to scrutinise every transaction to check their bank has paid the correct interest or charged them correctly," said ASIC Commissioner Alan Kirkland.
"Consumers deserve clear information about savings rates and the financial benefits they are promised."
Savings rates can be complicated
With five cash rate hikes in 2026, interest rates are now at levels Australian consumers haven't seen since 2008. This is bad news for borrowers but there's a big silver lining for savers: you can now get a rate of around 6.0% on your savings.
But getting that rate is complicated. Many banks only offer their top rate to new customers, and sometimes for a limited time.
Many high-interest savings accounts come with a base rate, and a bonus rate on top that customers can get if they meet certain criteria, like growing your balance by a certain amount each month.
It can sometimes be tricky for customers to earn the maximum amount of interest. Reading the fine print is essential.
Want to get more interest?
Check out the market's highest savings rates
Ask a question