Macquarie boosts term deposit rates after admitting welcome rate failures
- Macquarie Bank lifts term deposit rates by up to 15 basis points
- The bank’s headline 12-month offer is now 5.50% p.a., below current market leaders
- The rate rise comes as ASIC announced Macquarie had admitted failures in its welcome rate savings account offer
- ASIC warns many Australians may be missing out on savings interest
Macquarie Bank lifted rates by up to 15 basis points across its classic and digital term deposit range, bringing its headline 12-month offer to 5.50% p.a.
The increase brings the bank closer to the top of the term deposit leaderboard, although its 12-month rate trails leading offers currently available.
Last week, Suncorp Bank snatched the lead after a 35-basis point boost lifted its 12-month term deposit rate to 5.75% p.a.
AMP GO and Gateway Bank come in second with their 5.70% p.a. offers.
Several banks have been in a heated competition in recent weeks, seeking to lure depositors willing to lock away their funds amid the current high interest rate environment.
See also: Compare 12-month term deposit rates
Macquarie Bank's latest term deposit rates
Here are the latest rates for Macquarie classic term deposit for balances of up to $1 million:
Term | New rate | Deposit size | Interest paid |
3 months | 5.20% p.a. | $5,000 - $1m | End of term |
6 months | 5.40% p.a. | $5,000 - $1m | End of term |
9 months | 5.40% p.a. | $5,000 - $1m | End of term |
12 months | 5.50% p.a. | $5,000 - $1m | End of term |
Macquarie Bank's digital term deposits, available for balances at least $25,000, also pay similar rates for equivalent terms.
Deposits exceeding $1 million in both classic and digital TDs get lower rates for the same terms.
Despite falling below the top rates on the term deposit leaderboard, Macquarie's best rate remains higher than those offered by the big four.
CBA's special offer for 12-month term has recently been upped to 5.35% p.a. while NAB, ANZ, and Westpac offer a top rate of 5.30% p.a.
See also: Big four term deposit rates
Macquarie under scrutiny over welcome rate
The rate rise comes as the Australian Securities and Investments Commission (ASIC) on Wednesday announced that Macquarie had admitted failures in the administration of its savings account Welcome Rate offer.
ASIC found some Macquarie customers did not receive the promotional interest rate they were entitled to.
Between 1 December 2021 and 9 September 2022, Macquarie advertised its Welcome Rate as a "welcome variable rate" or "bonus offer".
See also: Macquarie Bank Savings Accounts Review
ASIC alleged the way the offer was communicated could have led customers to believe it was paid on top of the standard variable rate.
However, the regulator found the Welcome Rate generally operated as a fixed rate that applied instead of, rather than in addition to, the standard rate during the four-month promotional period.
"As interest rates increased during 2022, the initial margin between the Welcome Rate and the standard variable rate could narrow or disappear," ASIC said.
During that period, if the standard rate rose above the Welcome Rate, the customer's rate increased only to match the standard rate.
ASIC also found clear internal guidance on how the product operated was lacking and that customer complaints did not trigger a timely correction.
"This wasn't just unclear wording," ASIC Commissioner Alan Kirkland said.
"Macquarie's systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the Welcome Rate worked," he added.
Macquarie had admitted to the advertising failures and agreed to a proposed penalty of $14 million, in addition to the $8.8 million in remediation already paid to nearly 40,000 customers.
The bank currently offers a high-interest savings account with no ongoing deposit or transaction conditions.
See also: Macquarie's raises savings account rates after RBA November hike
Macquarie announced on 1 September it was scrapping the welcome rate on savings accounts opened after 14 September 2026 as well as introducing new balance tiers.
Commissioner Kirkland said the case was a reminder that banks must "get the basics right", including ensuring they deliver the promises they make.
"Customers should not have to scrutinise every transaction to check if their bank has paid the correct interest or charged them correctly," he said.
Many Australians missing out on savings interest
Just as ASIC issued a reminder to banks, the regulator also urged consumers to check that they're receiving the savings rates promised by their providers.
ASIC warned many Australian savers could be earning less interest than they should if they do not understand how rates are earned and paid on their accounts.
Many banks in Australia offer welcome rates that apply only for a limited time, as well as bonus rates that often come with conditions which, ASIC said, "can be difficult to understand".
"Banks need to make it simple for customers to understand what they have been promised and then deliver on that promise," Commissioner Kirkland said.
"If a customer qualifies for a particular interest rate, they should receive it."
ASIC said savers should not assume they are guaranteed the highest rate advertised.
See also: The different types of savings account interest rates
Instead, customers are encouraged to check whether promotional rates have expired and whether the bank is paying the rate when they meet the conditions.
"If you don't understand the conditions attached to your account or can't easily work out what interest rate you are receiving, contact your bank and ask them to explain it," Commissioner Kirkland said.
The commissioner also urged consumers to raise concerns with their banks if they believe they have not received the interest they were promised.
Commissioner Kirkland said ASIC would continue to closely monitor the issue through enhanced supervision of the banks and would not hesitate to take action where necessary.
The warning follows a string of regulatory actions involving savings products.
In 2025, the Federal Court ordered ANZ to pay a $40 million penalty for making false and misleading statements about savings interest rates and failing to pay customers the interest they were promised.
See also: Which banks are increasing savings accounts rates after RBA hike
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| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
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5.30% p.a. | 5.30% p.a. | $1,086 | – | $0 | $99,999,999 | $0 | $0 | $0 |
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2.50% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.25% p.a. Intro rate for 4 months then 5.65% p.a. | $1,186 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Disclosure | ||||||||||
4.15% p.a. | 6.15% p.a. Intro rate for 4 months then 4.15% p.a. | $973 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
