CHOICE has written a submission to the Australian Consumer and Competition Commission (ACCC) calling for the regulator to take action against Australia's banks for failing to offer accessible and fair savings rates.
For many families, the interest earned on a deposit account is an important safety net for their financial security.
In May 2023, CHOICE asked over 7800 members and supporters about their experiences with interest rates on deposit accounts. Respondents, including retirees and people on low-incomes, shared their experiences of financial loss and harm from banks failing to pass on fair rates. The clear message from the community is that people expect stronger obligations on banks to do the right thing.
CHOICE calls for three bold reforms:
- Banks should be required to automatically switch people to the best possible rate they offer, mitigating the harmful practice of banks charging a "loyalty tax."
- Barriers to switching banks should be removed, making it as easy to cancel a deposit account as it is to set one up.
- Financial institutions should be subject to a new "Consumer Duty", ensuring firms offer fair value for the savings accounts they offer.
Download the report (PDF)
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