RAMS follows the flock by dropping high interest savings account rate
The pain has continued today for Australians eager to get the best returns on their savings account balances, with RAMS becoming the latest online provider to slash rates - dropping its Saver Account interest rate by 20 basis points from 3.00% to 2.80%.
Having previously held the position of joint market leader in the Mozo database for savings accounts with ongoing bonus interest rates, the RAMS Saver Account has now dropped to equal fourth with ING’s Savings Maximizer and Australian Unity’s Active Saver accounts.
Peter Marshall, Mozo’s Product Data Manager, said the move by RAMS was unsurprising given the recent trend towards providers reducing deposit rates.
“We’ve seen a number of providers cut high interest ongoing bonus rates already this year, and I fear the trend may continue to be bad for savers going into 2018 if the RBA maintains the current cash rate,” he said.
“Though in saying that, savers shouldn’t become complacent, because the variety of rates out there means there are still opportunities to switch to a provider which could secure you a better return on your savings.”
The move by RAMS makes them the fifth savings account provider in 2017 to have dropped its ongoing bonus interest rate below 3.00%, with AMP’s Bett3r Save Account now the only remaining option in the Mozo database for savers with an interest rate of 3.00%.
In fact, according to Mozo data, savings accounts with ongoing interest rates have fallen across the board in 2017 - the average ongoing rate having dropped from 1.89% to 1.80% in the past year.
Despite the fall, the Mozo Savings Calculator shows that Australians after more bang for their buck could earn a tidy amount of extra interest just by switching to a savings account with a higher rate.
The difference between an account with the current average rate in the Mozo database of 1.80% and the 3.00% offered with AMP’s Bett3r Save Account (should you meet the conditions) is $1,058 - based on a starting balance of $10,000 and weekly deposits of $100.
For those considering making the switch to a high interest savings account, don’t forget to check out the Mozo savings account comparison hub where you can compare nearly 200 different savings accounts from 69 providers.
Top 6 savings accounts by ongoing bonus interest rate
Here are the current top six savings accounts for ongoing bonus interest rates in the Mozo database as of Wednesday December 6, 2017: