Banks failing to boost interest rates on savings accounts

Australian banks are failing to increase savings interest rates on savings accounts, despite being very quick to hike their home loan rates.

The Reserve Bank of Australia (RBA) opted not to lower the cash rate earlier this month, which prompted the country's major banks to put their mortgage rates up within a week.

Aussies with savings accounts and term deposits would have been hoping that their nest eggs would also be the subject of an increase, but this has not been the case.

Analysis of 200 accounts by Public Defender found that savers were denied any extra cash, despite the fact that 36 institutions lifted their home loan rates, the Herald Sun reports.

The research also revealed that one bank had even cut its interest rates for savings by 0.15 percentage points.

Experts have accused banking chiefs of double standards and have urged Aussies to switch providers if they feel that they are not receiving fair rates.

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