Savers urged to check interest rates on accounts as Macquarie admits failings

Macquarie Bank has admitted to failures in the promotion of its "welcome" interest rate for new savings account customers.

The bank has admitted to breaching the Corporations Act and could face a $14 million penalty, in proceedings brought by ASIC.

Macquarie described the interest rate as a "welcome variable rate" and a "bonus", which ASIC alleges could have led customers to believe it was paid on top of the standard variable rate.

In fact, the Welcome Rate generally operated as a fixed rate that applied instead of, rather than in addition to, the standard rate during the four-month promotional period, the regulator said.

The penalty, which the parties have jointly proposed to the NSW Supreme Court, comes in addition to $8.8 million in remediation initiated by Macquarie which has already been paid to nearly 40,000 customers.