That 1.5% is only applicable to the first transaction on that deposit, however banks are allowed to lend at multiples of what they hold on deposit and of course you only get 5 - 5.5% p/a on the first transaction. the other multiples are profit.
For example you deposit $100 k @ 5.5% you get $5500.00 by the end of the year, the bank will lend that same $100k many times over and not all of it @ 6.7 %, it will be spread over other more profitable loans and they will earn $100k + you earn $5.5k minus tax.
You can not alway believe all you read from the banks.
