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

UOB One Savings Account August 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.

The Fed also recently announced that they will keep interest rates near zero until 2022 as the recession continues.

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

The new round of changes will take effect from 1 Aug 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?


TL;DR: UOB One Account 1 Aug 2020 Changes

We’ll break it down by the Ugly and the Good — no bad this time around.

UOB-One-Account-Changes-August


The Ugly: 1 Aug 2020 Reduction 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 Aug 2020 onwards.

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

UOB One Account Revised Interest Rates in August 2020

 Interest p.a.
Before 1 Aug 2020
Total interest p.a.
After 1 Aug 2020
Difference
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 transactionsSpend min. $500 in a calendar month AND Credit Salary or make 3 GIRO debit transactions
Total Interest for B
First $15,0000.50%1.25%0.25%0.75%- 0.50%
$15,001 - $30,0000.50%1.30%0.25%0.85%- 0.45%
$30,001 - $45,0000.50%1.35%0.25%0.90%- 0.45%
$45,001 - $60,0000.50%1.40%0.25%1.00%- 0.40%
$60,001 - $75,0000.50%3.68%0.25%2.50%- 1.18%
Above $75,0000.05%0.05%0.25%0.05%No change

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

All the category A interest rates have fallen from 0.50% to 0.25%.

The category interest rates have fallen an average of -0.59% with the biggest change being the $60,001 to $75,000 tier with a cut of -1.18%

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

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”
  • 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
  • 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.

This makes is a great option for self-employed persons who do not have a regular salary.


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

Despite UOB drastically reducing interest rates across the board, you won’t get much better with other banks,

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

Alternatively, you can check out our comparison of cash management accounts in Singapore — a reasonable option with good interest rates and high liquidity.

Stay safe everyone!

REITs Tool

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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