OCBC 360: What Are the Changes in May 2020? Will They Benefit Me?
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OCBC 360: What Are the Changes in May 2020? Will They Benefit Me?

Ming Feng
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OCBC 360 – the Next Savings Account to Make Changes

OCBC 360 Account users should have been notified of a change that is kicking in from 2 May 2020.

Over the week, Singaporeans are receiving news that their savings accounts are all making changes to the way they calculate the interest rate. With falling interest rates all around the world, changes as such are inevitable and we can only mentally brace ourselves for it.

Brace for impact
Source: giphy

 

TL;DR: Changes to OCBC 360 From 2 May 2020

OCBC 360 Savings account review

Revision of Interest Rates for OCBC 360 from 2 May 2020

RequirementsBefore 2 May 2020From 2 May 2020Changes
Salary Bonus
First $35,000: 1.2% p.a.

(At least $2,000 through GIRO)
First $35,000: 1.2% p.a.

(At least $1,800 through GIRO)
No Change

(Salary requirement reduces by $200)
Next $35,000: 2.0% p.a.
Next $35,000: 2.4% p.a.+0.4%

(Salary requirement reduces by $200)
Spend BonusFirst $35,000: 0.3% p.a.First $35,000: 0.2% p.a.-0.1%
Next $35,000: 0.6% p.a.
Next $35,000: 0.4% p.a.-0.2%
Step-up BonusFirst $35,000: 0.3% p.a.First $35,000: 0.2% p.a.-0.1%
Next $35,000: 0.6% p.a.
Next $35,000: 0.4% p.a.-0.2%
Wealth BonusFirst $35,000: 0.6% p.a.First $35,000: 0.6% p.a.No Change
Next $35,000: 1.2% p.a.
Next $35,000: 1.2% p.a.No Change
Grow Bonus1.0%0.8%-0.2%
Boost Bonus1.0%No Longer Available-1.0%

A quick recap for OCBC 360’s interest rate requirements:

Salary Bonus: Credit your salary of at least $2,000 ($1,800 from 2 May 2020) through GIRO

Spend Bonus: Spend at least $500 on OCBC Credit Cards

Step-up Bonus: Increase your account balance by $500 compared to previous month

Wealth Bonus: Insure or invest with OCBC Bank and earn the bonus interest for 12 months.

Grow Bonus: Earn this extra interest on the first $70,000 if the account balance is at least $200,000

Boost Bonus: Earn this extra interest on the difference from the previous month balance


Pros for May 2020 Update: How Does It Affect Current OCBC 360 Account Holder?

With the $200 reduction in salary requirement every month, it means that more Singaporeans will be eligible for OCBC 360’s Salary Bonus.

The change to the interest rate for Salary Bonus will also be beneficial for OCBC 360 consumers with more than $35,000 in their OCBC 360 savings account.

Savings in OCBC 360Before 2 May 2020From 2 May 2020
First $35,0001.2%1.2%
Next $35,0002.0%2.4%

This group of consumers will now be able to enjoy an additional 0.4% interest rate on their savings after the first $35,000.

Cons for May 2020 Update: How Does It Affect Current OCBC 360 Account Holder?

OCBC 360 Consumers: Spend Bonus

The criteria for Spend Bonus is to spend at least $500 on OCBC Credit Cards.

If you have been enjoying a 0.3% p.a. for your first $35,000 savings due to Spend Bonus, you will earn 0.1% lesser interest from 2 May 2020.

The next $35,000 in your savings will also earn 0.2% p.a. lesser in interest.

OCBC 360 Consumers: Step-up Bonus

The criteria for Step-up Bonus is to increase your account balance by $500 when compared to the previous month.

If you have been enjoying a 0.3% p.a. for your first $35,000 savings due to Step-up Bonus, you will earn 0.1% lesser interest from 2 May 2020.

The next $35,000 in your savings will also earn 0.2% p.a. lesser in interest.

OCBC 360 Consumers: Grow Bonus

Grow Bonus allows OCBC 360 consumers to enjoy extra interest on their first $70,000 worth of savings if they save a total of more than $200,000 in their OCBC 360.

This Grow Bonus used to be 1.0% p.a. but will be reduced to 0.8% p.a. starting 2 May 2020.


Is it Still Worth Opening an OCBC 360 Savings Account After 2 May 2020?

If you are still on a less optimal savings account, one that is not considered a high-interest savings account, the lower barrier to entry to qualify for the Salary Bonus is definitely beneficial for you.

Existing consumers with more than $35,000 savings with OCBC 360 will benefit from that bump in interest rate too.

While the changes to the Step-up Bonus and Spend Bonus is a slight setback to the interest we can be earning, they still generally give an interest rate of 0.2% to 0.4%.

If you are unsure if the OCBC 360 savings account is still the best savings account out there for you when compared to the rest, be sure to use our Savings Account Calculator to determine the best savings account that suits your usage the most. It is also important to check out what others are saying about the savings account before making a decision.

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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