UOB trims One Account interest rate again; maximum 2.5% per annum on first S$150,000
With effect from Sep 1, the maximum effective interest rate on the One Account will be cut to 2.5 per cent per annum on the first S$150,000, down from 3.3 per cent.
UOB had already announced a cut earlier in April – With effect from May 1, the maximum interest rate was cut to 3.3 per cent from 4 per cent.
UOB is not the only bank to lower rates on its flagship deposit account twice this year – OCBC had already announced its second cut in June.
With effect from Aug 1, the maximum effective interest rate on OCBC's 360 Account is lowered to 5.45 per cent per annum on the first S$100,000.
OCBC had previously, on May 1, cut the maximum rate to 6.3 per cent from 7.65 per cent.
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Straits Times
21 hours ago
- Straits Times
UOB to trim deposit rates on flagship account from Sept 1 after OCBC cut; DBS stays unchanged
Sign up now: Get ST's newsletters delivered to your inbox A flagship savings account is a bank's best savings product, which offers bonus interest rates that go up as customers transact more with the bank. SINGAPORE – Interest rates keep falling for savings accounts here with UOB now about to fire the next salvo. The lender said it is cutting rates for its flagship UOB One account from Sept 1 – the third such reduction in the past two years. UOB's move follows on the heels of OCBC, which dropped rates on its 360 account from Aug 1 – the second time this year. DBS remains the last one standing, with rates on the Multiplier account remaining unchanged at between 1.8 per cent and 4.1 per cent. A flagship account is a bank's best savings product, offering bonus interest rates that rise as customers make more transactions, such as credit their salary, spend on their credit card, take up a loan or buy an insurance policy. UOB told customers that it is dropping the bonus rates for two categories by between 0.5 and 0.8 percentage point. The affected categories are: Card spend and the requirement to make three debit transactions via Giro; and card spend and salary credit. UOB One customers will earn between 1 per cent and 3 per cent on their first $125,000 from Sept 1, if they fulfil the criteria for the two categories. The rates are down from between 1.5 per cent and 3.8 per cent. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore The rates for the card spend tier remain at 0.05 per cent to 0.65 per cent. This essentially means that customers can expect between $750 and $1,750 of interest a year if they fulfil the criteria of card spend and three Giro debit transactions. If they credit their salary and spend on their UOB credit card, they can expect between $1,125 and $2,625 a year and between $487.50 and $512.50 if they only use their credit card. The upcoming revision is the third time the bank has trimmed rates for the UOB One account since May 2024. A UOB spokesperson said the revisions align with the longer-term interest rate outlook. The announcement follows the July 30 decision from the US Federal Reserve to keep rates steady there at 4.25 per cent to 4.5 per cent . The spokesperson added that the number of customers who earned bonus interest on their UOB One account has increased by more than 10 per cent year on year as at June 30. Mr Michael Makdad, senior equity analyst at investment research firm Morningstar, said UOB had been the more aggressive in offering higher rates among the three local banks in order to attract deposits. He added that he is not surprised that it is cutting rates again as it seeks to 'normalise its offerings that may have been more attractive than (its) peers for some customers'. Mr Glenn Thum, research manager at Phillip Securities Research, said that UOB may be trying to sustain its net interest margin (NIM) by lowering its funding costs. NIM is the difference between the interest income a bank receives from lending and what interest it pays on customer deposits. A higher NIM means more profit, a lower one indicates it is earning less from its lending and deposit activities. Meanwhile, OCBC 360 customers are now earning lower rates after the bank trimmed the interest it pays on certain bonus categories, such as salary credit, savings and card spend, from Aug 1. The bonus rates for the insurance and investment tiers remain unchanged. This marks the second time OCBC has dropped deposit rates on its 360 account, the first coming on May 1, 2025 . Morningstar's Mr Makdad said OCBC has the buffer to follow up with another cut after its results on Aug 1 showed that deposits in current and savings accounts increased 14 per cent year on year to $203 billion as at June 30. Such deposits are seen as cheaper sources of funding for banks. However, Phillip Securities' Mr Thum does not think OCBC will lower rates on the 360 account in the next few months unless the US Fed cuts rates faster than expected. An OCBC spokesperson said its 360 account remains a competitive product. The spokesperson added that the bank 'regularly reviews its product offerings and interest rates to align them with the competitive landscape and market conditions'. Ms Helen Tran, DBS' head of consumer deposits and transactional payments, said the bank has maintained its rates, an approach that has yielded positive outcomes. The number of DBS Multiplier customers increased by more than 30 per cent from March 2022 to March 2025, she noted, adding that 'growth momentum remains strong'. Ms Tran said that the DBS Multiplier remains the only savings account that recognises retirement payouts from the Central Provident Fund account as part of income in the 'Bank & Earn' space. The initiative means that 900,000 Singaporean or permanent resident customers aged 65 and above automatically qualify for higher interest rates on their Multiplier balances. The flurry of deposit rate cuts has left some depositors, like 57-year old civil engineer Leong Meng Sun, scurrying for another bank. Mr Leong was with Standard Chartered initially but switched after the interest on his account dropped from $20 a month in December 2024 to less than $9 from January 2025, for the same salary. He looked at the OCBC 360 but felt he would struggle to meet the requirement to increase his monthly account balances by $500. He then settled on the DBS Multiplier because it pays 1.8 per cent for smaller account balances of $50,000 like his, given he can meet the salary credit and credit card spend criteria. He also likes that Multiplier customers can continue to earn interest after they retire, but acknowledges that DBS may also follow UOB and OCBC to cut the deposit rates: 'It is a risk I have to take.'
Business Times
a day ago
- Business Times
UOB trims One Account interest rate again; maximum 2.5% per annum on first S$150,000
[SINGAPORE] UOB is cutting interest rates on its flagship savings account, the One Account, for the second time in 2025. With effect from Sep 1, the maximum effective interest rate on the One Account will be cut to 2.5 per cent per annum on the first S$150,000, down from 3.3 per cent. UOB had already announced a cut earlier in April – With effect from May 1, the maximum interest rate was cut to 3.3 per cent from 4 per cent. UOB is not the only bank to lower rates on its flagship deposit account twice this year – OCBC had already announced its second cut in June. With effect from Aug 1, the maximum effective interest rate on OCBC's 360 Account is lowered to 5.45 per cent per annum on the first S$100,000. OCBC had previously, on May 1, cut the maximum rate to 6.3 per cent from 7.65 per cent.
Business Times
a day ago
- Business Times
OCBC CEO-designate Tan Teck Long looks to continue ‘One Group' strategy, boost synergy
[SINGAPORE] OCBC's incoming chief executive will continue to bank on its 'One Group' approach to boost growth and synergy. 'We are an integrated financial services group, so there's still a lot of synergies which can be reaped from working together in closer collaboration,' said Tan Teck Long, deputy CEO and head of global wholesale banking at OCBC. Current CEO Helen Wong had 'put (the bank) on the right track' for future growth with the cross-organisation strategy, Tan said at the lender's second-quarter results briefing on Friday (Aug 1) . Giving his thoughts on the leadership succession, Tan said he had been 'working very closely' with Wong in various areas since he joined the bank in 2022, which paved a good ground for the succession. He also chairs the strategic resilience group at OCBC, which is a task force that studies major trends and risks, and recommends how to position the bank ahead. Tan said he has a good understanding of the Asean region, given that he started his banking career in Singapore. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up His time in China, where he helped to build the China franchise at his previous bank, also aided in his understanding of the Greater China region. Meanwhile, Tan said he spent a third of his career in risk management, and the other two-thirds on the front line. 'In today's environment, I do have a very good insight on how to stay nimble and have the right risk-reward relationship,' he said. Addressing questions on dividends and capital management, Tan said his current focus is on growing the franchise, which includes looking for the optimal capital level to maintain in uncertain times. Unexpected move In July, OCBC announced that Hong Kong-born Wong was stepping down from the top job , in a move that analysts touted as unexpected, given her short four-year tenure. Wong said she decided to retire as she wanted to spend more time with her family in Hong Kong, and noted that she had informed the board of her intention to leave early last year. She said the bank has 'always identified internal candidates' for key positions. When she took on the role of CEO, quite a number of her new management team were also internally selected, she noted. 'This is important because it ensures continuity, stability and also alignment with our long-term strategic goals,' she said. OCBC also conducted a global search for CEO, before the board 'unanimously' chose Tan as the successor. Tan had been 'anchoring the success of our 'One Group' approach', having been a strategic member of the lender's corporate strategy, Wong said.
