In a statement sent to RAMS customers, the Westpac-owned institution said it will be cutting the bonus rate by 20 basis points, lowering the maximum interest rate from 2.55% p.a. to 2.35% p.a.

The base rate will remain at 1.15% p.a.

The conditions required to get the bonus rate are unchanged: customers must still deposit at least $200 a month and make no withdrawals to get the bonus 1.20% p.a.

This news could prove disappointing for RAMS customers, who were one of the few groups of savings account customers not to get slapped with an interest rate cut in July.

Most banks passed on various rate cuts to their savings account and term deposit products following the Reserve Bank’s decisions to cut the cash rate in both June and July.

But RAMS, along with MyState and Up, did not, instead only passing on the first 25 point cut in June and holding firm in July.

Westpac, RAMS’ owner, also refrained from passing on a rate cut to its Westpac Life product in July.

But this change to the RAMS Saver is effectively a delayed rate cut from July, and given their relationship, it’s possible Westpac will also be making changes to its Westpac Life account.

Savings.com.au has reached out to a Westpac spokesperson for comment.

Who has the market-leading interest rates now?

Excluding honeymoon (introductory) interest rates that last for only a short period of time, RAMS previously boasted one of the highest interest rates on the market thanks to its no-cut July.

Now however it has slipped down the pecking order, with the likes of BOQ, Up and UBank offering higher interest rates at the time of writing.

Provider
Total interest
rate p.a.
Base interest
rate p.a.
Bonus interest
rate p.a.
 
2.50% 0.35% 2.15% More details
2.50% 0.80% 1.70% More details
2.50% 0.50% 2.00% More details
2.41% 1.35% 1.06% More details

*Data accurate as at 1 August 2019. Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rate, then by provider name (A-Z). Refer to providers' websites for bonus rate conditions.

The Westpac Life account meanwhile still boasts the highest interest rate among the big four banks.

Provider

00.010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Life

    01010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Progress Saver

      010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Reward Saver

        5000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        NetBank Saver

          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 14, 2024. View disclaimer.