Bank scraps retirement saving accounts for all customers

One of the few Australian banks still offering a retirement savings account (RSA) will scrap the product from next year, forcing customers to roll their savings into another fund or risk it being sent to the tax office.

Qudos Bank, which merged with Bank Australia in 2025, will close all retirement savings accounts by February 5, 2027.

Impacted customers will need to organise a transfer to another retirement or superannuation fund, or have it paid out directly if they are at retirement age.

Qudos will transfer any remaining balances to the Australian Tax Office (ATO) after February 11.

Australians can consolidate or claim any ATO-held or lost super online.

The bank alerted its customers to the impending closure in a significant event notice.

“We have made this decision after carefully reviewing our product range and considering the options now available to customers in the broader market,” Qudos Bank said in a statement.

Qudos stopped accepting applications for RSAs in August this year.

Australia Bank said it would not charge fees for transferring the balance to another fund.

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However, it noted that another fund “may charge fees or costs for the transfer or ongoing management of your account”.

It is unknown how many Australian customers will be impacted by the decision.

Before merging with Bank Australia, an estimated 100,249 people banked with Qudos Bank.

The $18 billion merger resulted in the formation of one of Australia’s largest customer-owned banks, with over 300,000 customers.

Only a small number of Australian banks still offer RSAs, which is a low-risk retirement savings option which generally offers lower returns.

RSAs have decreased in popularity as traditional, high-yield superannuation schemes became the mainstream product for retirement savings.

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According to the Australian Prudential Regulation Authority (APRA), Defence Bank and the Australian Military Bank are the only other financial institutions which still offer RSAs to new customers.

Other banks, including Commonwealth Bank, IMB, BankVic and People First Bank, still operate RSAs for existing customers but no longer accept new applications.

Some Australian retirees are paid a pension through an RSA.

Nine.com.au has contacted Qudos Bank for comment.

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