Macquarie Bank to pay $14m penalty after confusing ‘welcome rate’ promotion

Macquarie Bank faces a $14 million penalty from the Australian Securities and Investments Commission (ASIC) for breaching the Corporations Act with its "welcome rate" promotions in 2022. The regulator found that these promotions were unclear, leading some customers to believe they would receive a bonus on top of the standard variable rate.

As interest rates rose, the gap between the welcome rate and standard rate narrowed, causing customers to only receive the standard rate instead of the bonus. ASIC commissioner Alan Kirkland emphasized that customers should not need to closely examine every transaction to ensure they receive the correct interest. He stated that banks must have systems and controls in place to deliver on their promises to customers.

The Macquarie spokesperson acknowledged the bank's failure to provide financial services efficiently, honestly, and fairly, and confirmed it will not contest the court proceedings. The regulator's study revealed that 71% of bonus interest accounts failed to deliver the promised bonus rate due to customers breaching opaque conditions.

Kirkland urged consumers not to assume they will always receive the highest advertised rate, as it may depend on meeting specific conditions. He reminded customers to check account conditions, ensure compliance, and verify whether their bank is paying the promised interest rate.