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if you're an offset account owner, you may be paying extra interest for your bank's mistakes.

eight major australian banks failed to correctly link offset accounts, overcharging homeowners $55 million in interest over two years.

it turns out the banks aren't as automated as we thought. a massive review by asic found that 86% of these errors were caused by staff manually failing to link accounts properly. in one extreme case, a single customer was hit with an extra $3,500 in interest in just one month because their account was accidentally unlinked.

this isn't just about a few bucks; it's a systemic failure across 70% of the home loan market. while the banks have started paying back what they owe, the regulator expects the total compensation figure to keep climbing. keep an eye on your statements for any unexpected jumps in interest charges that don't match your balance.

the RBA is keeping rates high, meaning your rent or mortgage won't be dropping anytime soon.

RBA Governor Michele Bullock confirmed in a public speech that interest rates will likely be maintained at the current rate of 4.35% in an attempt to combat the current 3.8% inflation rate.

The head of the Reserve Bank just gave a speech making it clear they aren't ready to drop interest rates yet. With inflation sitting at 3.8%, the RBA is staying firm on its 4.35% cash rate to try and cool things down. Markets are even pricing in a 43% chance that rates could actually go up again when the board meets on August 11.

This is a tough spot if you're stuck in the wages-rent squeeze. While your real wages have effectively dropped by 5.1% over the last few years, the cost of debt stays high. It means the pressure on the rental market and your daily cost of living is set to stick around for the rest of the year.