UOB to trim rates on flagship account after OCBC, but DBS stays put

UOB will lower rates for One account from Sept 1—third such cut in past two years

- Chor Khieng Yuit

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.

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.