If you are looking to maximize your savings and worried about the impending changes to your OCBC 360 account (Which may effectively reduce its return to about 2.05%), perhaps you can consider the newly launched "UOB One Account". Lets take a look at the requirements to enjoy the interest rates as advertised by UOB.
1. Usage of Credit Cards
- A minimum charge of $500 to the UOB One Card or UOB Direct Visa Debit Card.
2. Salary or Giro
- To credit your salary (min. of $2000) per month
OR
- Perform 3 GIRO debit transactions
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The Deal
To qualify for the high savings interest for the UOB One Account, you would be required to meet the basic criterias listed below:1. Usage of Credit Cards
- A minimum charge of $500 to the UOB One Card or UOB Direct Visa Debit Card.
2. Salary or Giro
- To credit your salary (min. of $2000) per month
OR
- Perform 3 GIRO debit transactions
The Savings Interest Rates on meeting the above criterias are as follows:
| Account Balance in your UOB One Account | Meet Card Spend of S$500 | Meet Card Spend of S$500 and Credit Salary / make 3 GIRO debit transactions |
|---|---|---|
| First S$10,000 | 1.00% | 1.50% |
| Next S$20,000 | 1.50% | 2.00% |
| Next S$20,000 | 2.00% | 3.33% |
| Above S$50,000 | 0.05% | 0.05% |
^ Maximum effective interest rate (EIR) on the One Account is 2.43% p.a. at S$50,000 deposit, provided customers meet both criterias of S$500 Card Spend and S$2,000 Salary credit or 3 GIRO debits per month.
Whilst the criteria set by UOB is simple enough to achieve, especially for existing holders of the One Card, the actual Effective Interest Rate (EIR) actually falls short of the headlined 3.33%. In fact, the total EIR comes up to 2.43% on your $50,000. Although it is not be as attractive as the 3.05% that OCBC 360 used to promise, it certainly will be; come 1st May, when OCBC revises that figure.
Summary
Whilst the criteria set by UOB is simple enough to achieve, especially for existing holders of the One Card, the actual Effective Interest Rate (EIR) actually falls short of the headlined 3.33%. In fact, the total EIR comes up to 2.43% on your $50,000. Although it is not be as attractive as the 3.05% that OCBC 360 used to promise, it certainly will be; come 1st May, when OCBC revises that figure.
You can read more about the impending changes to OCBC360 here: Other Alternatives to the OCBC 360
