UOB One Savings Account May 2020 Changes - Still the One for You?
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UOB One Savings Account May 2020 Changes - Still the One for You?

Joel Koh
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We are living in extraordinary times.

As the world reels from the impact of COVID-19, central banks around the world have been cutting their benchmark rates after the U.S. Federal Reserve cut interest rates to near-zero last month.

As such, our local banks like UOB have had to make changes to the interest rates for the UOB One Account.

The changes will take effect from 1 May 2020.

For existing UOB account holders and those looking to open up a UOB One account, should you still be using this account after the changes or look elsewhere?

We’ll break it down by the Ugly and the Good.

TL;DR: UOB One Account 1 May 2020 Changes

UOB One Account May 2020 Changes


The Ugly – 1 May 2020 Revision of Interest Rates for the UOB One Account

UOB have announced that they will revise the interest rates on the UOB One Account. These changes will take place from 1 May 2020 onwards.

This revision will be applicable to all new and existing UOB One accounts.

UOB One Account Revised Interest Rates

 Interest p.a.
Before 1 May 2020
Total interest p.a.
After 1 May 2020
Account Balance in your UOB One Account (SGD)Spend min. $500 in a calendar month
Total Interest for A
Spend min. $500 in a calendar month AND Credit Salary or make 3 GIRO debit transactions
Total Interest for B
Spend min. $500 in a calendar month
Total Interest for A
Spend min. $500 in a calendar month AND Credit Salary or make 3 GIRO debit transactions
Total Interest for B
First $15,0001.50%1.85%0.50%1.25%
$15,001 - $30,0001.50%2.00%0.50%1.30%
$30,001 - $45,0001.50%2.15%0.50%1.35%
$45,001 - $60,0001.50%2.30%0.50%1.40%
$60,000 - $75,0001.50%3.88%0.50%3.68%
Above $75,0000.05%0.05%0.05%0.05%

The reduction in interest rates is pretty drastic with reductions across the board.

All the category A interest rates have fallen from 1.50% to 0.50%.

The category interest rates have fallen an average of 0.64%.

The only thing that is unchanged are the interest rates for those who have above $75,000 in their account

The rate is kept at 0.05% for category A and category B.

Note: the Base Interest for UOB One is 0.05% p.a if you do not fulfil any of the categories.

How do you qualify for Category A?

To qualify for Category A, you will need to fulfil Action 1: spending a minimum $500 on a UOB card each calendar month.

Blue Credit Card

This spend consists of all Visa and/or Mastercard® transactions successfully posted in the calendar month which includes:

  • All Visa and/or Mastercard retail spend on your card.
  • Recurring payments which cover your insurance premiums charged to your card.

Selected Cards include:

  • UOB One Card
  • UOB Lady’s Card
  • UOB YOLO
  • UOB One Debit Mastercard
  • UOB One Debit Visa Card
  • Mighty FX Debit Card

How to Qualify for Category B?

To qualify for category B, you will need to fulfil Action 1: spending minimum $500 on a UOB card each calendar month AND fulfil either Action 2 or Action 3.

Action 2: Make a Minimum $2,000 Salary Credit via GIRO to Your UOB One Account.

Saving Money In A Jar
Source: giphy

What constitutes as Salary Credit?

  • Only valid for salary credited through GIRO with the transaction reference “SALA”
  • To set up your salary crediting to your account, please inform your HR department of your new account number. If applicable, you can use the template we have developed for you to send it to your HR department. Download it here.
  • Bonus interest is paid on the Monthly Average Balance at month-end

Action 3: Make 3 GIRO Debit Transactions Monthly From Your UOB One Account

What constitutes as GIRO debit transactions?

  • You need to make 3 GIRO debit transactions payable to any billing organisation with the bank, within the calendar month
  • You can use the GIRO form to facilitate your GIRO instructions. Download it here.
  • Bonus interest is paid on the Monthly Average Balance at month-end

The Good – Qualifying Criteria for the UOB Account Remains Unchanged and Simple

Good news, all existing qualifying criteria for the UOB One account remains unchanged.

Unchanged Patrick Star
Source: Spongebob Squarepants | Giphy

You can continue to meet the monthly eligible card spend with your UOB One card or a wide range of cards every month.

Although salary crediting remains an efficient way to raise the interest rates for your UOB One Account, it might work for people like freelancers and self-employed individuals.

Thankfully, UOB allows you the flexibility to fulfil Action 3 and qualify for category B by making 3 GIRO debit transactions each month.


Is it Still Worth Opening a UOB One Account After 1 May 2020?

Despite UOB drastically reducing interest rates across the board, the interest rates are still reasonably high for those who have yet to open up a high-interest rate savings account.

Plus, it is relatively simple to perform the two UOB One Account actions to qualify for category B.

Spending $500 a month on their cards is not unachievable, but you should also look at our credit card reviews to see if you can get a better rate.

UOB also offers flexibility for those who cannot perform the salary crediting action with their 3 GIRO transactions action.

You should also be comparing the other high-interest rate savings accounts and their changes as well.

Read UOB One User Reviews

Stay safe everyone!

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About Joel Koh
History student turned writer at Seedly. Before you ask, not a teacher. My time as a history student has equipped me with the skills to evaluate the impact societal development has on financial and nonfinancial events, as well as financial transactions and models.
You can contribute your thoughts like Joel Koh here.

Still have more questions after reading the article? Fret not, ask our community here!

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