By turning your RAMS Action Account into an offset account, you can reduce your interest obligation on your home loan. This is a 100% offset, meaning the full dollar of your account balance is used towards your home loan. This results in a lower amount of interest owed, putting more of the payment towards the principal. Keep this up and you will end up repaying your home loan before you had anticipated.
What are the features of the Rams Action account with Offset?
The mortgage offset is just one part of this account. The RAMS Action Account is also a transaction account, allowing you to take care of your everyday money needs with ease. When comparing this type of account between different Australian banks, be sure that you are considering the banking features along with the offset benefit:
- Offset benefit. The mortgage offset facility holds your excess funds which are linked to a RAMs home loan. Each month, the interest that is due on the home loan is reduced the assumed interest that would have otherwise been paid to you on the balance of the Rams Action Account. This allows for you to pay off your loan or build up equity quicker.
- Availability. The offset facility is available to individuals who have a RAMS Action Account and home loan.
- Monthly fee. You will not be charged any monthly fees for this account.
- Unlimited free transactions. You are permitted to access your account for free online, by using EFTPOS, or making cash withdrawals at an ATM. This includes using BPAY and Pay Anyone, or making transfers between different RAMS accounts.
- Linked debit card. This account does come with a linked debit card to help you make purchases and withdrawals, with the money being deducted straight from your account.
- ATM availability. You are allowed unlimited free transactions using your linked debit card at ATMs in the Westpac, St.George, Bank of Melbourne and BankSA networks.
- Overseas ATMs. Your RAMS debit card can be used overseas at ATMs displaying the Cirrus logo. Your account will be charged $5 for each of these transactions.
- No monthly fee
- Linked Visa debit card
- Free transactions across the Westpac ATM network
- Lack of branches
How do I apply for the RAMS Action with Offset?
If you already are a RAMS home loan customer, you can visit the RAMS website to begin an online application for the RAMS Action with Offset. It takes just 10 minutes to sign up online (with online ID verification). In addition to needing to have a RAMS home mortgage, you must also be able to meet the following eligibility requirements in order for your application to be accepted:
- Minimum age. All applicants must be at least 18 years of age in order to apply for this account.
- Residency requirements. You must be an Australian resident for tax purposes with an Australian residential address.
- Depository requirements. You will not be asked to meet an minimum opening deposit requirements.
Once you determine that you are eligible to apply, RAMS suggests that you have the following documentation next to you to help with filling out your online application:
- Tax file number. It is optional to provide your tax file number (TFN) or exemption code, but if you do choose not to provide it, RAMS will be required to deduct withholding tax on any interest earnings at the highest marginal rate plus the Medicare levy.
- Identification. The details outlined on your driver’s licence. If a driver’s licence is not available you will be instructed on what other types of identification are acceptable to help confirm your identity.
- Contact information. RAMS will need both your address and Australian mobile phone number in order to send you important information regarding your account.
If RAMS is able to verify your identity online, they will go ahead and link your new offset facility to your home loan so that you can begin benefiting from lowered interest payments.