ASIC warns over high-interest savings accounts
While depositors across Australia are searching high and low for high interest savings accounts as the base rate continues to plummet, the investment regulator is urging customers to read the small print when looking for online deals.
According to the Australian Securities and Investment Commission (ASIC), there is a risk that people could be misled by some adverts for high interest web-based savings accounts due to various clauses in the small print.
One of the main concerns raised in a new report published by the group is offers of high introductory savings interest rates, which then drop down to relatively low returns after an initial period.
“This is most relevant where the advertising continues despite the fact the relevant promotional period is due to expire shortly,” ASIC warns in a new report.
Speaking to the Australian, Greg McAweeney, general manager of RaboPlus, which does not offer introductory rates such as those under scrutiny, said the bank fully supported the regulator’s findings.
The ASIC has also recently undertaken a wide-reaching investigation of the insurance industry and has called for greater leeway for policy holders who are struggling to make payments due to financial hardship.