Macquarie Bank is set to pay a $14m court-imposed penalty after it admitted to breaking the Corporations Act with its “welcome rate” promotions.The penalty comes amid a crackdown by Australian Securities and Investments Commission over complex savings conditions that risk short-changing consumers grappling with the cost of living.Macquarie Bank described its savings offer as a “welcome variable rate” or “bonus” in promotional material in 2022, according to the regulator, which could lead some customers to believe it was paid on top of the standard variable rate.As interest rates increased that year, the gap between the welcome rate and the standard rate shrank.Once the standard rate overtook it, customers only received the standard rate with no bonus added, Asic alleged in the NSW Supreme Court proceedings.The Asic commissioner Alan Kirkland said customers should not have to scrutinise every transaction to check their bank has paid the correct interest.“Banks must get the basics right, which includes having systems and processes that deliver on the promises they make to customers,” Kirkland said.“This wasn’t just unclear wording. Macquarie’s systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the ‘welcome rate’ worked.”A Macquarie spokesperson said in a statement the bank will admit in court proceedings that it failed to provide financial services “efficiently, honestly and fairly”.“Macquarie will not contest the proceeding and is expected to pay a $14m civil penalty,” the spokesperson said.Fine printMost lenders now offer attention-grabbing savings rates with strict conditions, marking a shift from the “unconditional” accounts that used to be the industry norm.The competition regulator found in a 2023 study that 71% of bonus interest accounts failed to receive the bonus rate each month due to customers breaching the often opaque conditions.Kirkland said on Wednesday that customers should not assume they are guaranteed the highest rate advertised by their bank.“Higher advertised rates may only apply for a limited time or may depend on the customer meeting certain conditions,” Kirkland said.“Consumers should check what conditions apply, whether they are meeting them and whether their bank is paying the interest rate they have been promised.”Savers can be disqualified from earning the advertised rates when they do not make a deposit into their account each month or grow the balance.

Some savings products also require customers to make no withdrawals.The issue is particularly pertinent during periods of high living costs, when many customers rely on interest to supplement their income or save for a home deposit.Australia’s official interest rate is now at an 18-year high of 4.85% as elevated inflation persists.Angel Zhong, a professor of finance at RMIT, said when interest rates move, the banks’ promotional offers for savings products “get louder”.“That is exactly when clear, honest rate disclosure matters most, because small differences in wording can steer big decisions,” Zhong said.“This is about clarity, not complexity. Rate wording should be treated as a core compliance risk, with clear senior accountability.”