An offset account is an everyday banking account which is linked to your variable rate home loan. Any money in this account is offset daily against your outstanding loan balance, reducing the interest payable on the home loan.
Here’s an example:
- Let’s say your offset account has a balance of $40,000.
- And you owe $400,000 on your mortgage.
- The amount on which you pay interest is $360,000 ($400,000 - $40,000).
- As your offset acts as an everyday account, you can still access the $40,000 when you need it.
Four key features: RAMS offset account
- 24/7 account access via myRAMS online banking - to easily monitor and manage your savings.
- With your debit card, you can use it to make ATM transactions at any ATM# around Australia
- Easy everyday transactions with eftpos Tap & PayTM.
- No account fees - view RAMS deposit fees and charges.
You need to have an eligible RAMS home loan to link to your RAMS Action with Offset account.
Other eligibility criteria:
- Not available to companies and trusts.
- Must be an Australian resident for taxation purposes with an Australian residential address.
- Must hold a valid email address and Australian mobile phone number.
How to apply
- You can apply for a new RAMS Action with Offset account via myRAMS, simply login and go to Apply Online.
- Register to access myRAMS by calling 13 RAMS, that’s 13 7267.
- Please refer to RAMS deposit fees and charges and RAMS deposit terms and conditions for full details.
What information do I need upfront?
- Apart from personal information such as name, date of birth and Australian residential address, you’ll also need to provide:
- Australian mobile phone number
- Driver’s licence details (optional)
- Tax file number or exemption code (this is optional but if you choose not to provide it, we are required to deduct withholding tax at the highest marginal tax rate plus the Medicare levy)
- We can even try to verify your identity online so you may not need to provide any or all paperwork.
Note: The offset facility is not available to company or trust borrowers, while your loan is on a fixed interest rate, or on RAMS line of credit loans.
Chloe and James have a $400,000 Home Loan and $40,000 in a RAMS Action with Offset account.
The interest rate payable on their home loan is 4.5% p.a.
Due to the offset account being linked to their home loan, the amount on which they pay interest is $360,000 ($400,000 - $40,000), which results in an interest charge of $1,376 for the month*.
This is $152 less than they would have paid without the offset facility.
The good thing is, the money sitting in their offset is easily accessible when required, as it is a transaction account.