Millions of Australians could be losing out on extra cash as the corporate watchdog slams banks to deliver on their promises to customers.
The Australian Securities and Investments Commission (ASIC) has issued a warning for customers to check their bank statements for what interest is actually being paid, stating the fine print of promotional offers may be confusing or misleading.
The warning comes as Macquarie Bank admitted it failed its customers around how it advertised a special Welcome Rate offer, which has led to a millions of dollars in repayments to more than 40,000 customers.
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“Banks must get the basics right, which includes having systems and processes that deliver on the promises they make to customers,” ASIC Commissioner Alan Kirkland said.
“Customers should not have to scrutinise every transaction to check their bank has paid the correct interest or charged them correctly.”
In proceedings brought by ASIC in the NSW Supreme Court, Macquarie admitted a contravention of the Corporations Act 2001, with both parties proposing a $14 million penalty to the court, on top of the $8.8 million they already repaid to customers.
Macquarie described its Welcome Rate as a “welcome variable rate” and a “bonus”, which ASIC alleged could lead customers to believe the interest was paid on top of the standard variable rate.
In reality, the Welcome Rate replaced the bank’s standard variable rate for four months, rather than being paid on top of it.
For example, customers might have expected a 5 per cent Welcome Rate on top of their standard 4 per cent rate, giving them 9 per cent interest. Instead, the 5 per cent rate replaced the standard rate, meaning they earned just 5 per cent.
Macquarie has admitted it failed to make the offer clear, had inadequate safeguards to prevent customers misunderstanding it, and did not act quickly enough when complaints were raised.
In proceedings brought by ASIC in the NSW Supreme Court, Macquarie has admitted breaching the Corporations Act, with the parties jointly proposing a $14 million penalty.
The proposed penalty is subject to court approval.
“At a time when Australians are contending with cost-of-living pressures, consumers deserve clear information about savings rates and the financial benefits they are promised.“
Urgent warning to check your statements
ASIC is urging Australians to check the rate currently being applied to their savings accounts, whether advertised rates are introductory or conditional, and exactly what they need to do to qualify for a higher return.
Customers should also check how long promotional rates last and what interest rate will apply once the offer expires.
“If you don’t understand the conditions attached to your account or can’t easily work out what interest rate you are receiving, contact your bank and ask them to explain it,” Kirkland said.
“And if you have met the conditions for a higher rate but aren’t receiving it, raise it with your bank.”
He said ASIC would continue to closely monitor the issue through enhanced supervision of banks and would not hesitate to act where consumers were harmed.
Watchdog puts banks on notice
Kirkland said the Macquarie case was more than confusing advertising.
“This wasn’t just unclear wording. Macquarie’s systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the Welcome Rate worked,” he said.
The case is not the first time ASIC has taken action over savings interest rates.
In December 2025, the Federal Court ordered ANZ to pay a record $250 million in combined penalties for widespread misconduct affecting the Australian Government and almost 65,000 customers.
This included a $40 million penalty for making false and misleading statements about savings interest rates and failing to pay tens of thousands of customers the interest they had been promised.
Never assume you’re always getting the best rate
ASIC’s latest warning comes as the watchdog steps up its scrutiny of how banks advertise and deliver savings rates.
Kirkland said banks must make it easy for customers to understand what they have been promised and then follow through.
“If a customer qualifies for a particular interest rate, they should receive it,” he said.
“If the conditions are too complex or difficult to decipher, customers may miss out on interest they could otherwise be earning.”
He warned consumers not to assume they were automatically receiving the highest rate advertised by their bank.
Higher rates may only apply for a limited time or depend on customers meeting certain conditions, such as making regular deposits, limiting withdrawals or increasing their account balance.
The Australian Competition and Consumer Commission’s (ACCC) Retail Deposits Inquiry found, on average, 71 per cent of bonus interest accounts did not receive the bonus interest rate in each month during the first half of 2023.
