The Bonus Interest Trap: Why Australians Still Struggle to Access Promised Bank Incentives

Conor's Corner

"You simply can’t trust banks to act in your best interest…But you can trust MyMoneyMedic"

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Despite repeated calls from financial regulators, Australia’s biggest banks are still falling short when it comes to making bonus interest offers transparent and accessible for everyday customers.

According to a recent article from The Guardian (read here), the Australian Securities and Investments Commission (ASIC) has flagged ongoing concerns that major banks are not doing enough to ensure consumers can earn the advertised bonus interest on their savings accounts. These bonuses—touted as incentives to encourage saving—often come with confusing conditions, poor communication, and unclear tracking systems that leave customers unaware of how close they are to qualifying.

What’s Going Wrong?

ASIC’s warning highlights several persistent issues:

• Lack of transparency: Customers often don't know if they’ve met the monthly requirements (e.g. minimum deposits or zero withdrawals) to qualify for the bonus.

• Poor digital tools: Most banks don’t offer real-time tracking or alerts to show if the bonus interest will be applied.

• Inconsistent communication: Key information about qualifying criteria is often buried in fine print or sent in hard-to-find notifications.

  
  

Why This Matters

In a cost-of-living crisis, every cent counts. Bonus interest rates can help Australians maximise their savings, but only if they understand how to earn them. When banks obscure the criteria, it undermines customer trust and widens the gap between advertised benefits and actual outcomes.

ASIC Chair Joe Longo has reiterated that financial institutions must be proactive in simplifying and clarifying the bonus interest process. The watchdog is calling for banks to improve their user interfaces, adopt real-time tracking, and clearly inform customers of any missed conditions.

How You Can Protect Yourself

At MyMoneyMedic, we believe transparency and empowerment go hand-in-hand. Here are some practical steps to make sure you’re not missing out on promised interest:

• Set reminders to meet minimum deposit or transaction requirements.

• Regularly check your app or online banking—even if the system isn’t perfect.

• Keep a log of your savings activity so you can contest missed bonuses if necessary.

• Switch banks if your current institution lacks transparency or support.

The Bigger Picture

This issue is a symptom of a wider problem: financial literacy and digital engagement tools must catch up with consumer expectations. Australians deserve banking systems that support—not hinder—their efforts to save.

At MyMoneyMedic, we’re working to put financial wellbeing back in your hands. Through personalised insights, simplified tracking, and trustworthy advice, we help ensure you’re not leaving money on the table.