RAMS decreasing their interest rates

cpho on 29/05/2013 - 12:46

Just got an email from RAMS about their interest rates being cut back from June 1st.

"We're writing to let you know about 2 changes to your RAMS Saver rate, which are effective Saturday 1 June 2013.
Following recent Reserve Bank cash rate changes, the RAMS Saver rate with bonus will reduce to 4.76%p.a. That's still one of the best online savings rates today. Plus it's an ongoing variable rate (not just an introductory rate) and there are still absolutely no fees.
We're increasing the bonus rate to 1.30%p.a. (when you meet the bonus eligibility criteria) and reducing the base rate to 3.46%p.a.
So in summary, from 1 June 2013, you'll earn a high bonus variable rate of 4.76%p.a. (that's the variable base rate of 3.46%p.a. plus variable 1.30%p.a. bonus) when:
 
- you deposit a minimum totalling $200 a month;
- you make no withdrawals in the month; and
- have an account balance that does not fall below $0 or exceed $500,000 at any time during the month."

For the sake of being a discussion topic;
Will RAMS still be the most competitive?
Will all the other smaller banks follow suit and cut their interest rate too?

Financial

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Comments

  • c64 on 29/05/2013 - 14:46
    +1

    thanks for letting us know. i was wondering if they were ever going to drop their rates or whether i should open an account. i'm getting 4.75% with mebank so i'll stick with them at the moment.

    Will all the other smaller banks follow suit and cut their interest rate too?

    i think most will have already done so

  • snappy1234 on 29/05/2013 - 17:17

    Good on them for emailing this out… Unlike Ubank :(
    shame tho.

    Matches Rabo rate now

  • cpho on 29/05/2013 - 18:11

    Isn't Rabo only an introductory rate?
    Also, is it still worth sticking with RAMS or does anyone have a better alternative with a higher return?

    • Hunter80 on 29/05/2013 - 20:55

      RAMS is very competitive for savers rate, as long as you can fulfil the bonus condition, I think you will be right. They are up there…

    • muncan on 30/05/2013 - 08:06

      Looks like MeBank is still at 5.1% if you got the 12 month bonus 1.6% bonus
      (3.5% variable + 1.6% bonus = 5.1%)

      • Jarr0d on 30/05/2013 - 09:03
        +1

        No my mebank was cut from 5.10 to 4.75 the same week the RBA was cut, without a single notice, email or anything.

        • muncan on 30/05/2013 - 12:36

          I could have sworn the base rate was 3.5% this morning when I posted above comment. Grrr…

  • Weezle on 31/05/2013 - 18:09

    just a question, does opening heaps of bank accounts (ubank, ING, mebank, RAMS etc), affect your credit rating? Cause I already have a few with empty balances when the rate sucks..?

    • muncan on 31/05/2013 - 19:43

      It would be wise to close them (ING particularly) so that you can claim future bonuses when opening new accounts.

      • snappy1234 on 31/05/2013 - 21:43

        muncan is pretty on the case there but i would just close ING… the others keep the rate for old/new clients (but increase balance by $200 to qualify)
        Rabo can be an exception if you have that.

    • c64 on 31/05/2013 - 22:17
      +1

      does opening heaps of bank accounts (ubank, ING, mebank, RAMS etc), affect your credit rating?

      generally not. only if you apply for credit, eg, a credit card. a visa/mastercard debit card does not provide credit.

      Cause I already have a few with empty balances when the rate sucks..?

      if you aren't getting charged monthly account keeping fees then what does it matter. you could close them if you want to tidy things up. i think banks will automatically close inactive accounts after a year or two.

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