AI Looms as Threat to $300b Held in Non-Interest-Bearing Accounts

The Reserve Bank of Australia's recent decision to raise the cash rate to 4.6% has prompted major banks to increase interest rates on savings accounts, but not on daily transaction accounts that pay no interest.

Major Australian banks hold over $300 billion in deposits in non-interest-bearing transaction accounts, with Commonwealth Bank accounting for $120 billion of this total.

With the rise of artificial intelligence, consumers are increasingly using technology to find accounts offering better returns, and experts warn that savings in these accounts could become a target for AI agents.