Australian banks hold billions in savings accounts untouched by rate hikes

Australian banks hold billions in customer savings that fail to benefit from four interest rate hikes, as strict account conditions or non-interest-bearing accounts leave many savers with minimal returns. Major banks raised maximum savings rates by 0.20-0.25 percent after the latest RBA announcement, but only for select products. A 2023 ACCC inquiry found over 70 percent of customers never met monthly conditions for bonus rates, reverting to a flat 0.10 percent base rate. Commonwealth Bank held nearly $122 billion in zero-interest accounts as of June, with Westpac, NAB, and ANZ holding $82 billion, $67 billion, and $61 billion respectively. Consumer advocates urge banks to be more proactive, while experts recommend regular banking checks and exploring offset accounts. The RBA meets next week with markets pricing a 98 percent chance of a fifth rate hike this year.