Do you have a retail deposit account? Wondering whether you're getting a good return for your hard earned savings? If so, the Australian Competition and Consumer Commission (ACCC) wants to hear from you.
The commission is calling on customers, banks and other stakeholders to provide feedback on a a range of issues affecting retail deposit products, including how banks set their interest rates as part of its ongoing retail deposits enquiry.
ACCC chair Gina Cass-Gottlieb said Australians collectively hold over $1.45 trillion in retail deposit accounts.
"The vast majority of Australian consumers have at least one savings, transaction, term deposit or other retail deposit account," she said.
"For many Australians, the interest earned on these accounts is an important source of income, and consumers are understandably keen to ensure they are receiving a good return on their savings."
Over the past 12 months, the Reserve Bank of Australia has increased the cash rate target from 0.35 per cent in May last year to 3.60 per cent in March in response to rising inflation.
While banks have generally increased variable rate home loans interest rates in line with cash rate increases, increases to savings interest rates banks pay their customers have frequently been smaller or conditional.
Ms Cass-Gottlieb said the inquiry would also look into competition and consumer issues affecting supply of products to Australian consumers and self-managed super funds, how banks make decisions relating to interest rates and barriers preventing consumers from getting a better deal.
It will also look into differing interest rates on similar products depending on deposit amounts, demographics, whether customers are new or existing and whether they hold other products with the same bank.
"We also want to hear from consumers and consumer organisations about experiences in searching for and taking up retail deposit products, including any impediments consumers face in switching banks to get a better deal," Ms Cass-Gottlieb said.
Key issues the ACCC is seeking feedback on include:
- How banks and other authorised deposit-taking institutions set rates on retail deposit products
- How their approaches differ from rate setting for credit products, such as home loans
- The role of deposits in their overall funding mix
- Consumer information and switching.
Other issues to be considered include competition between banks and financial institutions and the potential for new competitors to enter the market.
Financial regulators, including the Reserve Bank of Australia, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission will be closely consulted throughout the process.
Submissions are open until May 19. To share your feedback email fscompetition@accc.gov.au. For more information on the ACCC click here.
