The shopper watchdog has been requested to look into rates of interest for savers amid concern banks aren’t providing their prospects a good deal.
Treasurer Jim Chalmers urged the Australian Competition and Consumer Commission to analyze the matter, noting savers must be seeing larger rates of interest by now.
“Banks should treat their customers fairly when it comes to savings accounts,” Dr Chalmers stated on Wednesday.
“People who rely on their savings bore the brunt of very low rates in the past and they should see the benefits of higher rates now – it should be the silver lining in all of this.”
An ACCC spokesperson welcomed the probe, noting lenders have been passing on the Reserve Bank’s rate of interest hikes to mortgage prospects however will increase on deposit merchandise have been typically decrease, slower or conditional.
“This inquiry will provide transparency on these issues,” the spokesperson informed AAP.
But RateCity analysis director Sally Tindall stated prospects didn’t want to attend for the outcomes of the inquiry to discover a higher deal.
She welcomed the inquiry however stated competitors was nonetheless alive and nicely amongst banks.
“What we are seeing as the result of rate hikes is the gap between the highest savings account and the lowest is widening so people need to be proactive until those banks decide to lift rates across the board,” Ms Tindall informed AAP.
Common methods employed by banks to keep away from passing on the complete rate of interest improve embody mountain climbing some deposit accounts however not others, in addition to providing promotional or conditional charges to prospects.
She stated the banks have been providing excessive charges with strings connected, comparable to depositing a specific amount into the account every month, to encourage savers to deal with them as their main financial institution.
Higher charges for youthful savers is one other tactic utilized by banks to draw prospects which might be saving up for a vacation or a home deposit, and can seemingly be searching for credit score merchandise down the road.
“There is a lot of competition in the saving sector but some banks are taking some of their customers for a ride,” Ms Tindall stated.
She urged prospects to keep away from complacency and store round, with 17 banks now providing ongoing financial savings charges of 4 per cent and over.
The RBA began mountain climbing rates of interest in May final yr to fight fast-rising inflation.
The central financial institution has lifted the money charge by a cumulative 300 foundation factors from document lows of 0.1 per cent, with additional hikes anticipated in 2023.
