Big four banks hold billions in customer savings earning zero interest
Australian banks hold billions in customer accounts earning no interest, while raising rates only on products with strict conditions.
The Commonwealth Bank holds nearly $122 billion of customer money in non-earning accounts, while Westpac holds nearly $82 billion, NAB about $67 billion, and ANZ about $61 billion. After the RBA's recent rate rises, all four banks increased their maximum saving rates by 0.20 to 0.25 per cent, but only on select products with strict conditions.
If you miss those conditions, such as making a minimum monthly deposit, your account reverts to a base rate of just 0.10 per cent, earning almost nothing. A 2023 competition regulator inquiry found more than 70 per cent of customers never met the monthly conditions on high-interest accounts.
Only 16 per cent of consumers switched savings accounts in the past three years.
Why it mattersYour savings may be earning far less than the headline rate advertised, and you could be losing money to inflation if you don't actively check your account's terms and switch if needed.
AustraliaAustralian savers are missing out on the full benefit of interest rate rises because of hidden account conditions and lack of switching. Billions sit in banks earning zero interest while their account holders fall quietly behind.
✓ Claims checked against the source. checked 3 h ago
