With interest rates in Australia the highest in ten years, finally the tables have turned for Australian savers, who’ve endured years of meagre returns on their bank deposits.
Australian households collectively hold more than $1.3 trillion in savings and deposit accounts. Many of these accounts are held by pensioners and self-funded retirees.
But despite hopes of a payday, the rates extended to savers haven’t appeared to keep pace with the rate rises by the RBA, prompting the ACCC to investigate.
As the cash rate rose from 0.1% to 3.35% in the recent run-up of RBA rate hikes, savers were hoping their hard-earned money sitting in the bank would finally start bearing fruit.
It’s yet to happen.
“We welcome this direction from the Government to shine a light on the retail deposit market and rate-setting decisions of banks,” said ACCC Chair Gina Cass-Gottlieb.
The ACCC announced the inquiry on the same day that the Commonwealth Bank (ASX:CBA) posted a record half-year profit of $5.15 billion.
The equation is simple, higher interest rates helped the bank improve margins.
The retail deposit inquiry won’t conclude until December, by which time the RBA may even have begun to lower interest rates again.
In the meantime, the ACCC has hinted that savers should also do their homework to get the best rate from the banks.
“We will also examine the extent to which consumers can benefit from shopping around and switching, and what other barriers are stopping consumers from seeking a better return on their savings,” Ms Cass-Gottlieb said.