The competition watchdog says increases to the rates offered to savers by the banks have often been “lower, slower or conditional” when compared with the rate rises they’ve passed onto mortgage holders
, as it welcomed an inquiry to increase transparency around the issue.
While the banks have passed on all the RBA’s rate rises to mortgage holders since the central bank started tightening monetary policy, the increase in deposit rates has been more limited and patchy, a dynamic that is boosting bank profits while“Banks should treat their customers fairly when it comes to savings accounts,” Chalmers said.
“[Banks] shouldn’t be picking and choosing, the complacent savers miss out,” she said. “I wouldn’t say competition is not existent in the savings sector, it’s just that some banks are hoping that complacent savers won’t notice they are on a dud rate.” “[The inquiry] will alert consumers to the fact they might not be on a competitive rate and put pressure on the banks to do the right thing with future rate hikes that come our way.”
“The most competitive rate depends on how much a customer wants to put away in savings and how quickly they want to access their funds as cash.”
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