Pleasant surprise from UOB (One Account)

I have been trying hard to find ways to earn more from my War-Chest money while waiting for the right market opportunity. Currently the money is split between the UOB One Account $50k, DBS Multipler Account $50k, and the Standard Chartered Bonus Saver (we have 2 accounts for this switching between the 2 to get the bonus interest). I won’t go too much into which account is better as many bloggers have written about all 3 accounts and each have their own preference due to their own money circumstances.

Anyway back to the topic. I received an SMS from UOB about the changes to the UOB One Account and was thinking die, they are going to lower the benefits and there goes my interests. So I was pleasantly surprised that instead of taking away the benefits, they have actually made them better!

So what are the key changes?

From 1 August 2018, you get:

For me, the increase in the balance cap (i.e. the maximum amount that can earn the bonus interest) brought the greatest benefit. UOB have increased it to $75,000 from $50,000. That means more interest at their bonus rates. In fact the maximum interest amount you can earn has increased to $1,827 (previously it was $1,216, i.e. $1,416 with the additional $200 credit card rebate).

I belong to group B, so on first thought, I thought that all the interest in each tier has increased but I soon realized that after the first $30,000, the interest had actually dropped from 3.33% to 2.15% and 2.3%. Finally, I realized that I should be using EIR (effective interest rate to compare instead.

Previously:

Maximum effective interest rate (EIR) on the One Account is 1.60% p.a. for deposits of S$50,000, provided customers meet the criterion of S$500 Card Spend in each calendar month. Maximum effective interest rate (EIR) on the One Account is 2.43% p.a. for deposits of S$50,000, provided customers meet both criteria of S$500 card spend AND (a) a min. S$2,000 salary credit via GIRO OR (b) 3 GIRO debit transactions in each calendar month.

Now:

Maximum effective interest rate (EIR) on the One Account is 1.50% p.a. for deposits of S$75,000, provided customers meet the criterion of S$500 Card Spend in each calendar month. Maximum effective interest rate (EIR) on the One Account is 2.44% p.a. for deposits of S$75,000, provided customers meet both criteria of S$500 Card Spend AND (a) a min. S$2,000 salary credit via GIRO OR (b) 3 GIRO debit transactions in each calendar month.

So for group B, maximum EIR has actually increased from 2.43% to 2.44%. If however you are in group A, then it would have fallen from 1.6% to 1.5%.

Overall, I find that the changes has been good for me. I now can earn an EIR of 2.44% on an additional $25,000 (instead of 1.2% in Standard Chartered Bonus Saver)

Best part about these changes, you do not need to jump through additional hoops to earn the additional interest.

Now if only the other banks will follow suit to up their game!

For more detailed information:

https://www.uob.com.sg/assets/pdfs/one-account-online-notice.pdf

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