Profit-soaked banks are plundering their own customers with an unfair double-whammy - lifting loan rates more than the interest they pay out in savings and term accounts.
ANZ and St George Bank both lifted their interest rates by 0.35 per cent yesterday, 0.1 per cent more than last week's move by the Reserve Bank.
The ANZ's rise placed it in the unenviable position of being the biggest mover of interest rates out of the major banks in 2008 - a mammoth 0.8 per cent jump in 10 weeks. But while the rises were damaging news for struggling homeowners, it was also a slap in the face for all bank customers.
Consumer groups yesterday criticised the banks over the growing disparity between interest charged and the interest achievable in savings and term accounts.
The Commonwealth Bank, the biggest offender, has lifted interest rates 0.7 per cent this year, while only offering a 0.5 per cent increase in interest achievable in its leading savings account. The ANZ has lifted interest rates 0.8 per cent, compared with only a 0.6 per cent jump in deposit rates.
All the major banks have moved well ahead of the Reserve Bank's official cash rate on loans, but are lagging behind on deposit account rates.
While interest rate rises affected all variable customers, the small increases in interest-bearing accounts are only available to some customers.
Bank consumer group Cannex believes the growing disparity shows blatant disregard for bank customers.
"Some institutions are just not raising their deposit rates as high as mortgage rates," Cannex analysts Jeremy Ooi said. "They are certainly not being very fair to consumers."
Treasurer Wayne Swan last night backed families angry with the banks' split decision on rates and again urged customers to rebel.
The anger at the rates disparity came as AMP yesterday lifted its interest rates on banking products by 0.30 per cent. It followed a 0.35 per cent raise by the Commonwealth Bank on Monday, while the NAB and Westpac last week moved their rates up 29 and 30 basis points respectively.
One family suffering at the hands of bank greed is the Cowan family, from Edensor Park in Sydney's west.
Matthew, 32, and his wife Carla, 33, bought the home for $465,000 in 2003, taking out a mortgage with the ANZ.
"There are economic reasons for the Reserve Bank rise, but when the banks go above it that's tough on young families," Mr Cowan said.
