OCBC 360 Account October 2020 Revision: Will This Round of Changes Benefit Me?
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OCBC 360 Account October 2020 Revision: Will This Round of Changes Benefit Me?

Ming Feng
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OCBC 360 – More Changes to the Savings Account in October

OCBC 360 is changing the interest rate for its savings account yet again!

NOOO
Source: giphy

After the latest interest rate changes that were implemented on 1 July 2020, OCBC 360 users will have to brace themselves for a further reduction on the interest rates for their savings account on 1 October 2020.

In addition, OCBC will make changes to the category requirements for earning extra interest and adjust the amount in savings that will enjoy interest.

After the Federal Reserve cut US interest rates to near zero in March to mitigate the economic impact of the COVID-19 pandemic, changes as such are inevitable and we can only mentally brace ourselves for it.

Brace for impact
Source: giphy

Enough with the bad news already!


TL;DR: Changes to OCBC 360 From 1 October 2020020920-OCBC-360-October-changes


Upcoming Revision of Interest Rate Changes for OCBC 360 (From 1 October 2020)

RequirementsFrom 1 July 2020RequirementsFrom 1 October 2020
Salary Bonus
(Credit at least $1,800 through GIRO)
First $35,000: 0.6% p.a.Salary Bonus
(Credit at least $1,800 through GIRO)
First $25,000: 0.4% p.a.
Next $35,000: 1.2% p.a.Next $25,000: 0.8% p.a.
Next $25,000: 1.2% p.a.
Save Bonus
(Increase your average daily balance by at least $500 from the previous month)
First $35,000: 0.2% p.a.Save Bonus
(Increase your average daily balance by at least $500 from the previous month)
First $25,000: 0.1% p.a.
Next $35,000: 0.4% p.a.Next $25,000: 0.2% p.a.
Next $25,000: 0.4% p.a.
Wealth Bonus
(Insure or invest in eligible OCBC wealth products to earn this bonus interest for 12 months)
First $35,000: 0.6% p.a.N.A.N.A.
Next $35,000: 1.2% p.a.
Wealth Bonus (Insure)
(Insure with OCBC Bank and earn this bonus interest for 12 months)
N.A.Wealth Bonus (Insure)
(Insure with OCBC Bank and earn this bonus interest for 12 months)
First $25,000: 0.4% p.a.
Next $25,000: 0.8% p.a.
Next $25,000: 1.2% p.a.
Wealth Bonus (Invest)
(Invest with OCBC Bank and earn this bonus interest for 12 months)
Wealth Bonus (Invest)
(Invest with OCBC Bank and earn this bonus interest for 12 months)
First $25,000: 0.4% p.a.
Next $25,000: 0.8% p.a.
Next $25,000: 1.2% p.a.
Grow Bonus
(Maintain an average daily balance of at least $200,000 to earn this extra bonus each month)
First $70,000: 0.8% p.a.Grow Bonus
(Maintain an average daily balance of at least $200,000 to earn this extra bonus each month)
First $75,000: 0.4% p.a.

This is the third time this year that OCBC is making changes to the interest rates of their OCBC 360 savings account.

In addition, OCBC will make changes to the category requirements for extra interest, and adjust the amount in savings that will enjoy interest.

Not to mention that across the board for all category requirements, the savings tiers that will enjoy interest have been increased by OCBC from two tiers to three tiers.

From 1 July 2020:

  • First $35,000
  • Next $35,000

From 1 October 2020:

  • First S$25,000
  • Next S$25,000
  • Next S$25,000

Here is a quick recap of the upcoming changes to category requirements for earning extra interest.

Salary Bonus:

Credit your salary of at least S$1,800 through GIRO. (No change from 1 July 2020).

Save Bonus:

Increase your average daily balance by at least $500 from the previous month. (No change from 1 July 2020).

Wealth Bonus

The wealth bonus has been split up into two new separate categories: Insure and Invest.

Wealth Bonus (Insure):

Insure in eligible OCBC wealth products to earn this bonus interest for 12 months.

Purchase any new eligible financial product from OCBC of at least the minimum amount as follows:

  • Regular Premium Insurance Category 1: $4,000

  • Regular Premium Insurance Category 2: $2,000

  • Single-Premium Insurance: $20,000

Wealth Bonus (Invest):

Invest in eligible OCBC wealth products to earn this bonus interest for 12 months.

Purchase any new eligible financial product from OCBC of at least the minimum amount as follows:

  • Unit trusts: $20,000

    Excludes Unit Trusts investments into money market funds, Systematic Investment Programme (OCBC Momentum) and Unit Trusts transferred in from other financial institutions

  • Structured deposits: $20,000

  • Bonds and structured products: $200,000

Grow Bonus:

Maintain an average daily balance of at least $200,000 to earn this extra bonus each month. (No change from 1 July 2020).

Is It Still Worth Opening an OCBC 360 Savings Account After 1 October 2020?

To answer this question, we will break down the changes taking place from 1 October 2020 into positives and negatives.

Positives

OCBC will split up the current Wealth Bonus into two categories, Wealth (Invest) and Wealth (Insure),

This is a positive, as if you purchase insurance. and investment products from OCBC now; you would only enjoy additional interest from one category. After the October changes, the amount of additional interest you will enjoy is doubled, as the categories are split.

Negatives

The upcoming changes taking place from 1 October 2020 represent an overall reduction of interest rates across the board save for the Grow bonus category.

Not to mention that across the board for all category requirements, the savings tiers that will enjoy interest have been increased by OCBC from two tiers to three tiers. 

This is a negative in our books.

Let’s say you were to have $40,000 in your OCBC 360 account. With the current rates, you will enjoy 1.2% p.a. interest from the Salary bonus category. But after the October 2020 changes, you will only enjoy 0.8% p.a. interest as the amount in your account as the amount is under $50,000 which only qualifies for the second tier of the Salary bonus category.

Hence, if we were to solely focus on the interest rates alone, the pros of OCBC 360 savings account is limited.

We think that OCBC will not be the only bank reducing their interest rate again during this period of time.

So do keep track of updates from the rest of banks and their savings account and only then can you decide on the best savings account to get.

For now, we can only adopt a “wait and see” approach while making smarter financial decisions along the way.

If you are unsure if the OCBC 360 savings account is still the best savings account out there for you, we suggest waiting for all the banks to announce their change in the interest rates before deciding on your next move.

To help you with this, you can use our FREE savings accounts calculator that will help you optimise the amount of interest you can get based on your saving and spending habits.

Do check it out!seedly savings account calculator

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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