When

a

simple

bank

account

isn’t

so

simple.

We work hard to squirrel away money for the future, and for many, building the bank balance is the first step. With bank accounts being seen as the safest of investments, the returns on offer can be meagre (risk vs. reward) – so hunting for the accounts offering the highest rates is something we help keep on top of for clients.

However, once you create your account with the most attractive option and deposit your funds, is that it? Recent reports show that the ACCC found that 71% of bonus-interest accounts missed the bonus in an average month in the first 6 months of 2023, whilst Macquarie Bank has admitted to breaches over their bonus-rate account offer in 2021-22 which may have led account-holders to believe that their bonus rate would be in addition to a base rate that moved up along with the RBA cash rate, when in fact Macquarie calculated interest on the assumption that their bonus offer rate replaced the base rate and held
steady over time.

These cases show that Australians should make it a habit to check your accounts regularly to make sure you are receiving what you expect to receive. Interest is typically paid to accounts monthly, so a once-a-month quick check could be a small change that could help build some good financial habits.

Some of the high interest options require you to satisfy monthly criteria, so check your account interest to see if you’re receiving the higher rate, and if not – cross check the account flyer to see if you’re meeting requirements.

The error could be a simple misunderstanding on your end, or an error from the bank!

Quick and easy estimate for monthly interest payment = Bank Balance at start of month * Expected interest rate divided by twelve.

Quick and easy estimate to check interest rate being paid = monthly interest payment * twelve divided by the Bank balance at end of the month.

If your interest payment or rate is thereabouts or higher, you’re okay. If it’s not, time to look deeper!