Business · Companies · 53 mins ago
Macquarie admits savings-rate failures and agrees to proposed $14 million penalty
Macquarie Bank admitted it failed to explain its savings offer clearly to new customers in Australia.
From December 2021 to September 2022, it described a four-month promotional rate as a “bonus” or “welcome variable rate.”
The rate generally replaced the standard rate rather than adding to it, which could leave customers expecting more interest than they received.
As standard rates rose, customers were paid the higher standard rate if it exceeded the welcome rate.
The bank has already paid $8.8 million to nearly 40,000 customers and jointly proposed a further $14 million penalty with Australia’s financial regulator, ASIC.
ASIC says savers should check the conditions attached to advertised rates and whether they are receiving the interest promised.
The NSW Supreme Court must approve the proposed penalty before it takes effect.
Macquarie Bank admitted it failed to explain clearly how its welcome savings rate worked for new customers.
The bank and the Australian Securities and Investments Commission jointly proposed a $14 million penalty, subject to court approval.
The welcome rate generally applied instead of the standard variable rate during a four-month promotional period, not on top of it.
Macquarie has already paid $8.8 million in remediation to nearly 40,000 customers.
The bank said its actions were not deliberate and apologised for confusion caused.
- Who
- Macquarie Bank and the Australian Securities and Investments Commission (ASIC).
- What
- Macquarie admitted failures in explaining its savings account welcome rate. The parties jointly proposed a $14 million penalty, subject to court approval.
- When
- The bank described the rate this way between December 1, 2021 and September 9, 2022; the proposed penalty was reported on November 11, 2026.
- Where
- New South Wales, Australia; the proposed resolution is before the NSW Supreme Court.
- Why
- The rate was described as a “welcome variable rate” and a “bonus,” which could lead customers to think it was paid on top of the standard rate.
This story does not have two clearly opposing sides.
Macquarie described its savings account welcome rate as a “welcome variable rate” and a “bonus.
The welcome rate generally applied instead of, rather than in addition to, the standard variable rate.
Macquarie initiated $8.8 million in remediation, which was paid to nearly 40,000 customers.
Macquarie admitted contravening the Corporations Act, and the bank and ASIC jointly proposed a $14 million penalty.
- Proposed penalty
- $14 million
- Remediation paid
- $8.8 million
- Customers paid remediation
- Nearly 40,000
- Promotional period
- Four months
- Product wording period
- December 1, 2021–September 9, 2022
- Court
- NSW Supreme Court
2 sources
What people are saying
This wasn’t just unclear wording
Consumers should check what conditions apply, whether they are meeting them and whether their bank is paying the interest rate they have been promised.
We should have better explained on our website how the Welcome Rate would be applied and we apologise for any confusion caused.
Macquarie acknowledges that some of the wording on its website was not sufficiently clear and may have caused confusion.