Background: The Reserve Bank of Australia has already raised the cash rate three times this year, by a total of 75 basis points (so far). Those rate hikes tend to flow through to borrowers pretty quickly, with banks rapidly adjusting mortgage repayment rates after changes are announced.

What happened: Now, it's been revealed that Australia's major banks didn't fully pass on those rate increases to many savings customers. While the RBA lifted rates by 0.25% in May... CommBank only passed on 0.15% to its existing savings customers. And the other Big 4? ANZ and NAB lifted rates by 0.35% on savings accounts - but only if you jumped through a number of “bonus” hoops.

What else: It's causing scrutiny over how quickly banks raise borrowing costs compared with the pace and extent of increases offered to savers. And it seems the banks have mastered a very special skill…charging you more immediately… while paying you later.

What's the key learning?

💡 The advertised savings rate and the rate people actually get are two very different stories. Many bonus saver accounts operate with a very low base rate - sometimes as little as 0.01% - plus a higher bonus rate that only applies if customers meet certain monthly requirements.

💡 Bonus rates often come with conditions that must be met consistently, such as increasing account balances, avoiding withdrawals, or completing other eligibility rules. Miss those conditions... and customers can quickly fall back to earning almost nothing on their savings.

💡 Banks structure these products knowing many people won't qualify every month. The ACCC previously found that 71% of bonus interest account holders didn't receive the bonus rate on average each month, often because of emergency spending, tighter finances, or simply forgetting the rules. So, banks can advertise higher rates while paying out less.