Rams Interest Rate Dropping from 3% to 2.8%

Dacs on 24/09/2018 - 13:43
Last edited 24/09/2018 - 14:37 by 1 other user

I just got an email from Rams:

We're writing to let you know that the RAMS Saver rate will change to the new rates below, effective Wednesday 26 September 2018. The base rate is decreasing by 0.20% p.a. There is no change to the bonus rate.

It's a pity about this as it is an ongoing rate rather than an introductory rate and is easy to meet the requirements ($200 deposit per month) for money that you don't need to draw on.

And banks justified their mortgage rate increases by saying that the cost of borrowing has increased?

Time to look at other options again.

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Comments

  • bluesky on 24/09/2018 - 14:03
    +3

    Thanks for info. They dropped it to 2.8% sometime ago, and then raised it back to 3.0% while there was not much interest movement in the market. Now, a drop again. Would be nice if they do a surprise rise again later :-)

  • JimmyF on 24/09/2018 - 14:08
    +12

    So mortgage rate increases and saving rate decreases…. Hmmmmmm someone is skimming a bit too much from the middle me thinks!

  • Unorthodox on 24/09/2018 - 14:14
    +3

    Hmm interesting as it's within Westpac and we're seeing a bit of a play off between the banks.

    Somewhat disappointed as this puts Ubank at first with 2.87% but limited to one account for those who create multiple accounts/buckets.

  • azndraon on 24/09/2018 - 14:19
    +1

    That's a shame to hear, been with them for a few months as a purely savings account to dump $200 in. 2.8% still decent, hopefully they raise it again.

  • AdamFury on 24/09/2018 - 14:28
    +2

    UBank is the way to go!

    • JimmyF on 24/09/2018 - 16:31

      UBank is 2.87%, so a massive 0.07% better :/

      But yes still better $70 a year better interested per $100k.

      • billy3000 on 24/09/2018 - 19:20

        My ubank rate is 2.69 and we got $1k cash.. Refinanced a cpl months ago.

        • JimmyF on 24/09/2018 - 19:43
          -1

          ubanks website says its 2.87% vs 2.8% at rams now. So you're getting ripped at 2.69%.

          But as I said, $70 a year better in interest per $100k with ubank. Key word…..DIFFERENCE………

      • Gotchas on 24/09/2018 - 20:38

        Don’t forget about the poor tax man

        • JimmyF on 24/09/2018 - 21:34

          True, chop off at least 30% for the tax man, and where down to around $50!

      • Click_It on 26/09/2018 - 07:56

        If you're parking $100k to get 2.87% you need a financial strategist post haste.

        • Dacs on 26/09/2018 - 08:07
          +2

          Not necessarily. The $100k might be just part of your bonds/cash asset allocation.

          • pgdownload on 26/09/2018 - 12:23

            @Dacs: Then with your presumably $1-$10 million dollar portfolio chasing an extra $70 from your cash account is P still not warranted ;)

            • Dacs on 26/09/2018 - 12:29

              @pgdownload: If you're, say, a retired couple both 65 years old, you might have $1m in retirement savings with 40% to 60% of that in cash. You'll still need to live pretty carefully in case you need it to last you for another 40 years. A ~$350 per year saving is worth switching for.

        • bthaddad on 03/10/2018 - 16:51
          +2

          I am keeping my savings in cash because I plan to buy a property in the next 12 months. You should ask a financial strategist to explain investment horizons to you post haste…

          • Click_It on 08/10/2018 - 08:18

            @bthaddad: If that was to me, I already work closely with my strategist but thanks for sharing concern. My original comment was with property in mind actually, much more than 2.87% to be had there…

            Different strokes for different folks. I get that, we're all friends here.

  • jackofspade on 24/09/2018 - 15:18

    citibank 3.05%

    • Dacs on 24/09/2018 - 15:20
      +1

      Citibank 3.05% only for the first 4 months. For those of us that have already had one of those accounts the interest rate is only 1.70%

      • jackofspade on 24/09/2018 - 15:22

        Rinse and repeat

        • Dacs on 24/09/2018 - 15:27

          Is it not once-per-lifetime?

        • jackofspade on 24/09/2018 - 15:39
          +1

          @Dacs:
          Apparently not http://whrl.pl/RfdaVl

        • Dacs on 25/09/2018 - 12:18

          @jackofspade: I messsaged Citibank asking about this. Their reply was:

          We advise that the promotional rate on the Citibank Online Saver Account is only applicable on the first Citibank Online Saver that you open. Accounts that you will open will attract a standard variable rate of 1.70% p.a. for balances between $0-$500,000+.

        • jackofspade on 25/09/2018 - 12:49

          @Dacs:
          Probably a loophole in their system. Best not to bring it to their attention and ruin it for others.

          • j39 on 26/09/2018 - 07:46

            @jackofspade: surely they have these loop holes, and depends who you speak to.
            I have a friend on 5.00% with another bank and he mentioned the bonus rate can be adjusted..

  • Krumby on 24/09/2018 - 15:27
    -2

    Rams (Subsidiary of Westpac) decreases its saving rate by 0.20 points while it has increased its variable interest rate on homeloans by 0.14 points.
    Again lets save dumb people who borrowed over what they can repay and "tax" people who saved some money by decreasing savings account interest rates…
    I hope later increases in homeloan rates just force those people to default so to teach them a lesson.

    • Roll Eyes on 25/09/2018 - 08:59

      Your comment is an example of not being able to teach some people anything.
      Roll eyes.

      • Krumby on 25/09/2018 - 13:39

        Yes you are right. We should give them a tap on the shoulder, tell them that they are the best and everyone is a winner… That's a great way of teaching people what to do and not to do…

  • No ONE on 24/09/2018 - 16:13

    Next stop Ubank!

  • Fundies on 24/09/2018 - 16:21

    Sorry Rams….3% is my extreme low point in earnings on my hard earned. You are yo-yo'ing your rates now…..pisses me off. 400K will soon be heading from you to Rabo TD at 3.4% and my Super fund. I'm sure you don't want my funds.

    • Dacs on 24/09/2018 - 16:28
      +2

      If you put money into a Rabo TD account, remember that you can get an extra 0.1% interest if you first put it in a one-month TD then automatically reinvest into whatever length TD you want.

    • lovesabargain77 on 24/09/2018 - 20:01
      +1

      Make sure you wait to transfer it on the first of the month otherwise you will lose your bonus interest with RAMS for having made a withdrawal.

    • j39 on 26/09/2018 - 07:44

      What is the best way to close the account and are there any fees? OR should you keep a small amount in there in case they lift rates again?

  • DaTa on 24/09/2018 - 17:06
    +1

    Yeah I opened one up recently purely because they held the best rate in town for my to set and forget. again im better off with ubank…

  • 2jzzzz on 24/09/2018 - 17:20
    +1

    Signed up with ING this morning.

  • jug123 on 24/09/2018 - 21:31

    Surely at 2.8 or 3% youd be better off putting your money elsewhere, dividends are paying nearly twice that

    • cheapisgood on 24/09/2018 - 21:39
      +2

      some people don't like risks and rather play it safe, especially if near retirement.

    • Fundies on 25/09/2018 - 08:55

      Partly true…yes I have shares as well. What I am fed up with is lending my money to the banks at such lowly rates. Savers are the bread and butter of banks, yet you wouldn't know that as it seems the share holder is now King.

  • TheOtherLeft on 25/09/2018 - 07:36
    +1

    Goodbye RAMS…

  • HappyXD on 25/09/2018 - 08:48

    In still with greater bank at 3% although U need to be under 25 to open the account I think. Worth considering.

  • Krumby on 25/09/2018 - 17:14
    +1

    For those of you who have $100,000 and don't mind locking their funds for 12 months, Citibank has a 12 months term deposit at 3%

    • Dacs on 26/09/2018 - 08:04

      You can also get 3% for a 12 month term deposit on amounts from $5,000 to $499,999 at Unibank and Teachers Mutual Bank.

      I don't know much about either bank, but Unibank's About page says it's "exclusively for staff, students and graduates of Australian universities and their families" and Teachers Mutual Bank says "Membership is open to current or retired employees of the Australian education sector or family members of members (i.e. shareholders) of the Bank. Additionally, individuals must be citizens or permanent residents of Australia."

      • [Deactivated] on 07/10/2018 - 04:56

        The family Hominidae fixes that. Some of them went to uni.

  • Geekomatic on 26/09/2018 - 02:10

    Any reason not to mention mebank @ 2.85%?

    • TheOtherLeft on 27/09/2018 - 07:43

      Appears to be new accounts only:

      "Everyday Transaction Account alongside your first Online Savings Account, and you could qualify for a delicious monthly bonus rate."

      • Geekomatic on 29/09/2018 - 18:15

        Thanks for that. This would be my first shift in a few years so I didn't catch that one.

        • Magic Mirror on 30/09/2018 - 13:23

          But that shouldn't be a problem in any case:

          "You’re automatically eligible for bonus interest on your first OSA unless it was opened before 10/08/15, in which case you’re only eligible upon request."

          If you don't have an account yet, open one and it's a new account, so eligible. If you already have an one opened before 10/08/15, then just ring up and request for it to be made eligible. From the Whirlpool thread, it seems more people had problem with the "weekly tap" requirement (and the exact definition of "weekly").

  • Dealhunter967671 on 28/09/2018 - 22:04

    I didn't even receive an email, time to move the motherlode again…

  • caffeinesloth on 30/09/2018 - 14:19

    Only just moved my savings into RAMS 3 weeks ago to get the 3%. Time to move them out again.

  • Fundies on 23/10/2019 - 16:08

    Now 2%…….what a joke.

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