Photo by Flickr.
Photo by Flickr.
One of the market-leading savings accounts, the RAMS Saver, will have its interest rate reduced by 20 basis points tomorrow.
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.
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.
*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.
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