Potentially missing out on more than $5bn a year in lost savings
Sydney, NSW (PRWEB) May 28, 2012
RAMS today released findings from a national survey which indicate more than a third of Australians (37%) either don’t understand the difference between a transaction account and a savings account or are not sure.
38% of deposit funds currently sit in low interest accounts with the four big banks. Consequently, potentially more than $5bn per year is being lost in savings through lost interest which could have been accrued in a high interest savings account.
The results coincide with RAMS, traditionally known for helping to bring more affordable home loan rates to Australians, launching its suite of deposit products to new customers for the first time. This includes a high interest savings account – RAMS Saver – which currently delivers the most competitive interest rate in the Australian market. The RAMS Saver account has a bonus variable rate of 5.75% p.a. and a high base variable rate of 4.95% p.a.
Interestingly, the RAMS Savings Satisfaction Survey has found that too many Australians are losing money by depositing their savings in a transaction account, rather than a high interest savings account. The research also found high interest savings account holders are generally savvier than the rest of the population and save on average 29% more than those without a high interest savings account.
RAMS Chief Executive, Melos Sulicich said by taking a more proactive and conscious approach to their banking, Australians can grow their money further.
“It is concerning that potentially more than $5bn in savings are being lost annually, simply because so many people are not putting their money into a high interest savings account.
“Our research has found that high interest account holders tend to be more proactive, save mor
e money and are more satisfied with the way they save money, than those who don’t have one,” Mr Sulicich said.
“While RAMS has traditionally focused on bringing great home loan rates to Australians we now want to bring our same great deals to Australians who are serious about their savings. Our deposit accounts see us step into a new era to enable Australians to make more money from their savings.
“RAMS bonus variable interest rate of 5.75% p.a. demonstrates our commitment to bringing Australians a better deal and ensures that they have the opportunity to grow their money further. The RAMS Saver account is a very simple way to help you use your money more wisely, more efficiently and drive your dollar further so you get the most back in return,” he said.
Impressively, the RAMS Savings Satisfaction Survey has also indicated that Australians are serious about their savings. Two thirds (67%) of the population forego something in order to meet their savings targets, demonstrating the nation is committed to meeting their personal savings goals.
RAMS today also launched an everyday transaction account to new customers, RAMS Action, and RAMS Action with a mortgage offset feature, that may assist RAMS home loan customers to pay off their home loan faster.
RAMS Savings Satisfaction Survey Key Findings:
Transaction versus savings accounts:
- 37% of Australians either don’t understand the difference between a transaction and a savings account, or aren’t sure.
- Based on analysis of deposit funds sitting in low interest accounts with the 4 big banks (38%) potentially more than $5b in savings is lost each year.
High interest account holders are more ‘savings astute’ than the rest of the population:
- Those with a high interest savings account save significantly more than the rest of the population, saving on average 29% more than those without a high interest savings account High interest account holders are more satisfied with how they save compared to the rest of the population (62% versus 51%)
- Those with a high interest savings account are more likely to save more money, with 57% of high interest account holders saving more than 10% of their monthly income, versus 49% of the rest of the population.
Australians are serious about saving:
- Two thirds (67%) of Australians forego something to meet their savings targets.
- Seven in ten (70%) contribute to their savings each month.
Australians are savvy savers:
- Australians, who succeed to save, are saving an average of $827.94 per month.
- 51% of Australians save up to 10% of their income per month.
- More than 60% (62%) of Australians usually track their monthly account fees, with 45% of these people paying up to $10 a month in fees.
For further information, please contact: RAMS Media Relations - Melanie Monico on (02) 8218 6359
About RAMS Deposit Products:
- RAMS Saver (high interest savings account) is an online savings account that pays a high rate of return, with interest calculated daily and paid monthly. It offers a bonus variable interest rate, currently 5.75% p.a. and a high base variable rate of 4.95% p.a. The bonus rate is designed to reward customers who save. If a customer deposits a minimum of $200 per month, makes no withdrawals, keeps the account open for the whole month and does not have more than $500,000 in the account, they qualify for the bonus rate (currently 5.75% p.a.) however it they do not meet this minimum requirement they still qualify for the high base variable rate, currently 4.95%p.a.
- RAMS Action (transaction account) has optional debit card access and unlimited transactions for 24 hour easy transfers with debit cards that can be used at any ATMs (no fees if used at an ATM in the RAMS ATM Alliance. The RAMS ATM Alliance includes Westpac, St.George (excluding St.George ATMs in BP service stations), Bank of Melbourne and BankSA branded ATMs. Other institutions may charge a fee for use of their ATMs.
- RAMS Action with offset account can be linked to an eligible RAMS Home Loan, providing 100% offset so customers can use their savings to help reduce the amount of interest they pay on their eligible RAMS home loan.