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Macquarie Bank Limited (Macquarie) has admitted failures in the way it promoted its Welcome Rate offer for new savings account customers, in proceedings brought by the Australian Securities and Investments Commission (ASIC) in the NSW Supreme Court.
Macquarie has admitted a contravention of the Corporations Act 2001, and the parties have jointly proposed a $14 million penalty to the Court. The proposed penalty is in addition to $8.8 million in remediation initiated by Macquarie, which has already been paid to nearly 40,000 customers.
Between 1 December 2021 and 9 September 2022, Macquarie variously described its Welcome Rate as a 'welcome variable rate' and a 'bonus offer'. ASIC alleges this could lead customers to believe the rate was paid on top of the standard variable rate. In fact, 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 margin between the Welcome Rate and the standard variable rate could narrow or disappear.
Macquarie has admitted it failed to take necessary steps to ensure statements about its Welcome Rate were clear and not likely to cause confusion to new customers. It also admitted its advertising framework was not sufficiently rigorous to identify the risk that customers could misunderstand the offer, that it lacked clear internal guidance about how the product operated, and that customer complaints did not prompt a sufficiently timely correction.
Alan Kirkland, Commissioner, ASIC
Alan Kirkland, Commissioner, ASIC said:
"Banks must get the basics right, which includes having systems and processes that deliver on the promises they make to customers. Customers should not have to scrutinise every transaction to check their bank has paid the correct interest or charged them correctly.
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.
At a time when Australians are contending with cost-of-living pressures, consumers deserve clear information about savings rates and the financial benefits they are promised."
Macquarie has admitted contraventions of sections 912A(1)(a) and 912A(5A) of the Corporations Act 2001. ASIC's action follows an April 2025 determination by the Australian Financial Complaints Authority. The proposed resolution is subject to the approval of the Court, which will determine whether the proposed orders are appropriate and whether any other orders should be made.
Separately, ASIC has urged consumers to check they are receiving the savings interest rate they have been promised by their bank, warning that introductory, welcome and bonus rates can come with conditions or apply only for a limited time. Australians hold nearly $1.8 trillion in household deposits. ASIC has a 2026 enforcement priority focused on pricing practices affecting the cost of living, as well as an enduring enforcement priority focused on systemic compliance failures by large financial institutions that result in consumer harm.
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