Bank with No Monthly Charges And No Minimum Balance Required. Sign up today! Australia’s banking regulator says it had no knowledge of the Bank of Queensland’s controversial new savings account that offers tickets in a monthly lottery rather than a higher interest rate, despite claims it had approved it.
The account has been criticized for encouraging gaming because it requires clients to forgo an ordinary 3.5 per cent in annual interest for the opportunity to win $20,000 a month. In standing up for the account yesterday, Bank of Queensland (BoQ) chief administrator David Liddy said the corporation had been through two years of scrutiny and been accepted by the Australian Prudential Regulation Authority, as well as and state drawing commissions.
Advertisement: Article continues beneath Although an APRA spokesperson said the regulator had but learned about the product the previous day. It had not accepted the account, nor was it required to. BoQ chief operating officer Ram Kangatharan was forced to defended his chief, who was on a flight when the revelation was made. Mr Kangatharan apologised and said Mr Liddy had been mistaken. Nonetheless, he said the account had been given the go ahead by the relevant state and territory lottery commissions, who regulated savings accounts with trade promotions. “We can basically go ahead with it,” Mr Kangatharan said.