Keeping an eye on high-interest savings

Mozo

Wednesday 18 February 2009

Following the warning that Aussies need to keep a keen eye on introductory offers on high-interest savings accounts, RaboBank has called for new regulatory standards to be imposed.

The plea follows a report from the Australian Securities and Investments Commission (ASIC) in which it was warned that the savings interest rates offered on some savings accounts could wilt away once introductory offers expire.

RaboBank is one which refuses to offer enticing short-term rates and RaboPlus’s general manager Greg McAweeney has been instrumental in promoting transparent savings account returns.

Speaking to the Sydney Morning Herald, Mr McAweeney said: “In most cases there is a problem. We would like to see ASIC get into this. We would like to see the banks agree to some standards.”

One of the principal concerns raised by ASIC was that in some cases, people could be enticed to open an account because of a savings interest rate offer that is set to expire imminently.

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