ANZ Bank Faces Customer Backlash Over Cash Deposit Policies
A major bank's cash deposit policies have come under scrutiny after one dissatisfied customer shared his experience of being unable to deposit $2,400 at his local ANZ branch. The customer, who wished to remain anonymous, claimed he was told by the teller at the Hervey Bay branch of ANZ, "there was a $2,500 minimum deposit required for over-the-counter transactions, with notice required beforehand." This statement sparked frustration, considering most banks allow cash deposits without stringent conditions.
According to Yahoo Finance, the angry customer was directed to use the bank's ATM instead, which he found to be out of order at the time. After attempting to deposit his cash again through the teller, he was simply told to return later when the machine was operational. He remarked, "It came out of left field" and expressed his disappointment with the bank where he had maintained accounts since 2009. Having had positive experiences until now, he stated, "I won’t be dealing with them after this. I will be pulling my banking from them and moving elsewhere." He urged the bank to "do well, and do the right thing" for customers.
While ANZ responded to the backlash, noting there are no minimum deposit limits for teller transactions, many Australians agreed with the customer's grievance. Comments from other customers echoed his frustration, with some noting they felt pushed toward ATM usage instead of being served by tellers. One user criticized, "If the machine’s not working and they’re still a branch, it feels silly to turn customers away." Another added, "ANZ seems to push customers very strongly to their ATMs, even for higher-value transactions." The Australian Banking Association has reported shifting customer preferences toward ATMs, which accounted for 91 percent of cash transactions last year.
Shifting gears to the broader economic picture, ANZ's latest Property Focus report reveals changes on the horizon for homeowners as mortgage rates stabilize. The report indicates the current fixed mortgage rate options stand at 4.99 percent for two years, leading to suggestions from ANZ economists about locking in rates for longer terms soon. Their analysis shows there may not be significant drops below the current levels as many borrowers have shifted toward shorter fixed terms or floating rates, anticipating declines before settling on one-year fixes, which accounted for 34 percent of mortgage flows late last year.
"That's a lot of borrowers who chose to shorten how long they were fixed for – or moved to floating, and they are now well placed to make decisions on what to do next," ANZ stated. With their recommendations leaning toward fixing for two years at the current rate, they indicated it could strike the right balance between certainty and flexibility amid future economic uncertainties. They emphasized caution, indicating, "There is no shortage of uncertainty. But based on our expectation of a 3 percent low for the OCR, we think one- to three-year mortgage rates are approaching cyclic lows."
They also noted, "History shows mortgage rates need to drop below 5 percent, ideally around 4.5 percent, which requires the OCR to fall below 3 percent, and that's not currently projected." With these figures on the table, the economists assessed whether borrowers should refinance. They highlighted the cost of breaking existing mortgage terms might outweigh the benefits of lower rates. For those with less than one year left on fixed terms, it could be worth paying fees to re-lock at reduced rates.
Compounding these financial challenges, the accounting body CA ANZ is advocating for changes to third-party debt requirements with the Australian Taxation Office (ATO). They argue the current strict conditions on the Third-Party Debt Test (TPDT) are unrealistic for many businesses. CA ANZ criticized the ATO’s interpretation of “minor or insignificant” assets, which is seen as not representative of commercial realities. They suggest evaluating assets based on their impact relative to total assets, rather than strict thresholds.
Jenny Wong, tax policy lead at CPA Australia, emphasized these concerns, stating, “The evidentiary burden imposed by the ATO makes it practically unworkable.” CA ANZ is pushing for adjustments to allow for more inclusive definitions of commercial activities to account for capital management strategies, stating, “Those activities are important for ensuring enough cash flow to meet short-term obligations.”
To alleviate compliance burdens, CA ANZ has recommended extending application times for TPDT, allowing amendments post-filing, and permitting withdrawal options for businesses who may realize they no longer qualify. Echoing the sentiment, they acknowledged ATO's initiative for transitional compliance processes to assist entities dealing with newly enacted thin capitalization rules.
Overall, ANZ is witnessing pushback from customers frustrated with cash deposit restrictions and is amid changing tides characterized by mortgage rate predictions and proposed financial regulation reforms. These developments reflect wider banking industry shifts and highlight the importance of responsive practices within financial institutions to meet customer needs.