Macquarie Bank has admitted to failing to prevent confusion to new savings account customers over a “welcome rate” offer, agreeing to pay a $14 million penalty and acknowledging it did not respond in a timely manner to complaints.
The Australian Securities and Investments Commission said on Wednesday the bank, which faced the NSW Supreme Court, had admitted to contravening the Corporations Act and failed to take necessary steps to ensure statements about its “welcome rate” were clear and not likely to cause confusion to new customers.
Between December 1, 2021 and September 9, 2022, Macquarie had described its welcome rate on the Macquarie Savings Account as a “welcome variable rate” and a “bonus” which the commission alleged could lead customers to believe it was paid on top of the standard variable rate.
Instead, the welcome rate generally operated as a fixed rate that applied instead of – rather than in addition to – the standard rate during the four-month promotional period.
As interest rates increased during 2022, the initial margin between the welcome rate and the standard variable rate could narrow or disappear. If the standard rate rose above the welcome rate, the customer’s rate increased only to match the standard rate.
The commission and Macquarie jointly proposed the bank pay a $14 million penalty to the court, in addition to the $8.8 million in remediation initiated by Macquarie which has already been paid to nearly 40,000 customers.
Macquarie also admitted its advertising framework was not sufficiently rigorous to identify the risk that customers could misunderstand the offer. The commission said the bank lacked clear internal guidance about how the product operated and customer complaints did not prompt a “sufficiently timely correction.”
ASIC commissioner Alan Kirkland said customers should not have to scrutinise every transaction to check their bank has paid the correct interest or charged them correctly.
“This wasn’t just unclear wording,” he said. “Macquarie’s systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the welcome rate worked. At a time when Australians are contending with cost-of-living pressures, consumers deserve clear information about savings rates and the financial benefits they are promised.”
The proposed resolution will need approval from the court which determine whether the proposed orders are appropriate and whether any other orders should be made.
In a media release, Macquarie said it would not contest the court proceeding and acknowledged it had contravened its obligation to provide financial services efficiently, honestly and fairly.
“The matter arose because, when standard variable rates increased and exceeded the welcome rate, customers were instead paid the higher standard variable rate though some expected a bonus margin over that rate,” it said. “Macquarie acknowledges that some of the wording on its website was not sufficiently clear and may have caused confusion.”
Macquarie head of banking and financial services Ben Perham said while the commission has acknowledged the bank’s actions were not deliberate, the bank apologised for any confusion caused.
“We should have better explained on our website how the welcome rate would be applied,” he said.
Perham said the $8.8 million in compensation it had already chosen to pay would put customers in the position that they would have been if the welcome rate was a fixed bonus interest margin.
“Additionally, we have conducted a thorough review of all product descriptions we use across our website in relation to our transaction and savings account products and have prioritised the uplift of our governance, systems, controls, and procedures associated with the creation, approval and publishing of any future customer-facing collateral,” he said.
The bank said the matter was identified and fully accounted for in Macquarie’s financial year ended March 31, 2026.
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Millie Muroi is the economics writer at The Sydney Morning Herald and The Age covering workplace and economics. She was formerly an economics correspondent based in Canberra’s Press Gallery and the banking writer based in Sydney. Instagram/TikTok: @millie.muroiConnect via X or email.From our partners
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