The group’s head of policy,Patrick Veyret,also took aim at the widespread practice of offering higher rates to new customers than to existing customers,which he dubbed a“loyalty tax,” saying there was widespread discontent in the community.
“The strong message we’ve heard is that there’s been a real sense of disappointment,especially from older Australians who have been loyal customers for decades,” he said. “They shouldn’t have to ask every three months for the best rate.”
Veyret said vulnerable groups including retirees,those with disabilities and low-income earners were especially affected by banks not passing on fair rates.
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Earlier this year the federal government launched an Australian Competition and Consumer Commission inquiry into retail bank deposits,saying the rates offered to savers were often“lower,slower or conditional” when compared with the rate rises passed on to mortgage holders.
As part of its inquiry,the ACCC is looking into the pricing tactics used by banks,including introductory rates that are only offered for several months,and “bonus” rates that require customers to meet terms and conditions to get the best interest rate.
During the cycle of interest rate rises that began in May last year,banks have often been quick to raise rates on mortgages and increased bonus rates on savings accounts more than base rates,which do not require customers to meet conditions to earn interest.