Banks Not Paying Customers Enough Interest: ACCC

Bank customers who collectively hold over $1.4 trillion (US$938 billion) of their savings in products such as savings accounts and term deposits, and depend on them to earn a decent return, are missing out on higher interest rates, the Australian Competition and Consumer Commission (ACCC) Retail deposits inquiry final report has found. “While high headline interest rates may seem attractive to customers, they can come attached with conditions that are hard for customers to meet and keep track of,” ACCC Chair Gina Cass-Gottlieb said. While offers of bonuses and introductory interest rates are commonly used by banks to attract customers, the ACCC has found that in the first six months of 2023, on average 71 percent of eligible accounts did not receive bonus interest in any given month....