A major Australian bank will be cough up $240 million in fines after engaging in "widespread misconduct" affecting almost 65,000 customers.

ANZ admits failing to respond to hundreds of notices about customer hardship, making false and misleading statements about its savings interest rates and failing to pay that amount to customers.

The financial services watchdog also said the Big Four bank acted "unconscionably" while managing a $14 billion bond deal in services with the federal government as it incorrectly reported bond trading data and overstated volumes by tens of billions of dollars for years.

Even the dead were not spared, with ANZ failing to refund fees to thousands of dead customers and not responded to deceased estates inquiries from loved ones within the required time frame.

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