Standard Chartered Bonus$aver: What Are The Changes in July 2020?
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Standard Chartered Bonus$aver: What Are The Changes in July 2020?

Kenneth Fong
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After OCBC 360 updated their interest rates for their high-interest savings account

Guess who else is part of what looks like the beginnings of YET another interest-rate revision spree?

Yep…

standard chartered logo

There will be changes made to the Standard Chartered BonusSaver savings account come 1 July 2020.


TL;DR: Changes to Standard Chartered BonusSaver from 1 July 2020

The highest bonus interest rate will drop to up to 3.00% p.a. on the first $80,000 of your eligible deposit balance.

(This is down from up to 3.88% p.a. on the first $100,000 of your eligible deposit balance)

The amount of bonus interest which you can earn under the various categories will be hit pretty badly too.

All bonus interest for the various categories will be below 1.00% p.a. come 1 July 2020.

The only silver lining?

The Invest and Insure category has been separated into 2 categories.

So if you’re a heavy investor AND buy a lot of insurance with Standard Chartered, you will see an increase in bonus interest rates for those 2 categories.

(I mean, that makes sense right? The more you spend with the bank, the more they’ll reward you…)

Seedly Standard Chartered BonusSaver July Change

Revision of Interest Rates for Standard Chartered BonusSaver from 1 July 2020

RequirementsBefore 1 April 2020From 1 April 2020From 1 July 2020Changes in 2020
Prevailing0.10%0.05% p.a.0.05% p.a.-0.05% p.a.
Card Spend
(inclusive of Prevailing)
Up to 1.88% p.a.
(min spend $2,000 monthly)
Up to 1.50% p.a.
(min spend $2,000 monthly)
Up to 0.80% p.a.
(min spend $2,000 monthly)
-1.08% p.a.
Up to 0.88% p.a.
(min spend $500 monthly)
Up to 0.50% p.a.
(min spend $500 monthly)
Up to 0.30% p.a.
(min spend $500 monthly)
-0.58% p.a.
Salary Credit1.00% p.a.1.00% p.a.0.40% p.a.-0.60% p.a.
Bill Payments0.25% p.a.0.10% p.a.0.10% p.a.-0.15% p.a.
Invest0.75% p.a.1.28% p.a.0.85% p.a.+0.95% p.a.

Invest and Insure split into 2 separate categories
Insure0.85% p.a.
Total On First $100,000 Eligible Deposit Balance3.88% p.a.3.88% p.a.3.00% p.a.

Note: Total on First $80,000 Eligible Deposit Balance
-0.88% p.a.

Total eligible balance lowered by $20,000

Here’s a quick recap for Standard Chartered BonusSaver’s interest rate requirements:

Card Spend: Spend between $500 to $2,000 to get 0.30% bonus interest OR spend $2,000 and above to get 1.00% bonus interest

Note: Card Spend includes Prevailing Interest

Salary Credit: Credit salary of at least $3,000 via GIRO to enjoy 0.40% bonus interest

Bill Payment: Pay 3 bills of at least $50 each to enjoy 0.10% bonus interest

Invest: Buy an eligible insurance policy with a minimum annual premium of $12,000 to enjoy 0.85% bonus interest (previously combined with Insure category)

Insure: Buy at least $30,000 worth of unit trusts to enjoy 0.85% bonus interest


All the Changes to Standard Chartered BonusSaver in  2020

This is the second time this year that Standard Chartered is making changes to the interest rates of their Standard Chartered BonusSaver savings account.

Here are the changes at a glance:

Prevailing Interest: A decrease of 0.05% p.a.

Card Spend: A decrease of 0.58% p.a. if you spend between $500 and $2,000, and a decrease of 1.08% p.a. if you spend more than $2,000 a month

Salary Credit: A decrease of 0.60% p.a.

Bill Payments: A decrease of 0.15% p.a.

Invest: Separated from the Insure category, with an overall increase of 0.95% p.a. when both are combined

Total Bonus: A decrease of 0.88% p.a. with the total eligible balance lowered by $20,000 to $80,000

Pros of July 2020 Update: How Does It Affect Standard Chartered BonusSaver Account Holders?

As compared to the April 2020 update, this revision pretty much nerfs the bonus interest (up to 3.00% p.a.) that the average BonusSave account holder can get.

It doesn’t help that the bonus interest you can earn on:

  • Card Spend
  • Salary Credit
  • Bill Payment
  • Invest
  • Insure

are ALL below 1.00% p.a after the July 2020 Update.

Cons of July 2020 Update: How Does It Affect Standard Chartered BonusSaver Account Holders?

Card Spend

Like I mentioned before for the April 2020 update.

The whole COVID-19 situation means a lot more consumers are spending lesser because businesses are still closed.

And most, if not all of us, are still encouraged to stay home.

From before the revisions till the July 2020 update, an overall decrease of between 0.58% to 1.08% p.a. bonus interest really sucks.

Especially for those who are using their Standard Chartered cards to order food delivery or shop online

Salary Credit

This is the BIGGEST blow to BonusSaver account holders.

On 1 July 2020, you’re going to see a decrease of 0.60% p.a. bonus interest.

FYI: that’s a 60% cut?!

Bill Payment

Whether we’re stuck at home.

Or are free to roam again.

We all still have to pay bills for stuff like our SIM Only mobile planbroadband plan or electricity bill.

Thankfully, after a decrease of 0.15% p.a. bonus interest in the Bill Payment category — implemented on 1 April 2020.

There’ll be no changes on 1 July 2020.

Invest and Insure

Once again, this category gets a bump in bonus interest earned.

And it has also been split into 2 separate categories so you can potentially earn more.

HOWEVER.

While I appreciate Standard Chartered’s sentiment of wanting to help us “invest better for the future”.

It is unlikely that I will be buying at least $30,000 worth of unit trusts every year.

Perhaps if they opened it up to transactions clocked under the Standard Chartered Trading Account as well…


Then this might make sense for investors who are already actively using their online brokerage since it has one of the lowest fees in the market.

Also, while I’m adequately protected right now, I don’t spend $12,000 annually on insurance premiums either.

So…

Unfortunately, this category is pretty much dead to me.

Total Bonus Interest

To top it off.

Standard Chartered has revised the deposit balance eligible for the bonus interest.

From the first $100,000 to the first $80,000.

Krusty Krew Walking Away in Disbelief
Source: SpongeBob SquarePants | Giphy

Is it Still Worth Opening a Standard Chartered BonusSaver Account After 1 July 2020?

TBH, I used to like the high balance cap of $100,000 which is eligible for the bonus interest.

Note: for most savings accounts, the amount of bonus interest you can earn drops drastically once your balance goes past $75,000 (the sum insured by Singapore Deposit Insurance Corporation).

But now that it’s dropped to $80,000.

I’ll probably have to transfer any amount above that into a better savings account to earn more interest.

Or invest it.

.

.

.

Now, let’s run some hypotheticals.

Assuming you spend at least $2,000 a month.

Earn at least $3,000 a month.

(read: this is NOT ideal salary allocation)

And maintain a daily average balance of $80,000.

You’re looking at a bonus interest rate of 1.20% p.a. (or $960 interest earned) without having to:

  • pay bills using a Standard Chartered card
  • take a home loan
  • buy insurance
  • make any investments

That’s erm… kind of decent?

At least higher than leaving it in your kid’s savings account and earning a paltry 0.05% p.a.

Or the recent Singapore Savings Bonds

July Singapore Savings Bonds

But if you manage to drop your spending down to at least $500 a month instead, because you’re a financially responsible human being.

That drops your bonus interest rate to a miserly 0.70% p.a.

Then there’re probably other high-interest savings accounts which can do the same (or better) for you.

Don’t believe me?

Try our FREE Savings Account Calculator and see for yourself.

About Kenneth Fong
Owner of a 4-room HDB BTO and married to a financial clutz. Probably the closest to an adult you can find on the Seedly team.
You can contribute your thoughts like Kenneth Fong here.

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