Singapore. In an effort to stay competitive amid today’s rising rate environment, the major banks in the country have all raised their interest rates twice in the past four months.
Just last week, UOB announced that it would lift its maximum bonus interest rate on its flagship account to 7.8% annually. This is more than double the 3.6% annual rate before.
This move by UOB came shortly after other local banks increased their rates in November.
Now, OCBC’s interest rate per annum is at 7.65% for its 360 Savings Account. This is up from its previous 4.05% interest rate. Meanwhile, DBS Multiplier Account now offers 4.1% interest per annum, compared to its previous 3.5% interest rate.
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The increase is a welcome change after the low interest rates during COVID-19. This is UOB and OCBC’s highest offer since its flagship savings accounts were launched.
Individuals are encouraged to take time to assess which bank has the best offer, especially because there are certain conditions that need to be fulfilled to enjoy the highest advertised interest rate, such as a high amount of savings, credit or debit card spending, and other transactions such as salary crediting.
For instance, the maximum rate of DBS is only available for the first S$100,000 in the account, and when customers do salary crediting. There must also be at least S$30,000 in transactions per
month across different categories like home loan instalments, insurance and investments, and credit card spending.
Meanwhile, OCBC’s 4.65% rate is only available on balances up to S$100,000, and for customers that credit at least S$1,800 of their salary through GIRO. Account holders should also increase their balance by at least S$500 per month, as well as spend S$500 minimum on eligible credit cards. The highest interest rate is only eligible for customers who buy insurance and invest through the bank, although these would only qualify for 12 months of bonus interest.
Lastly, UOB’s maximum bonus is only applicable to balances of no more than S$100,000, spend at least S$500 on eligible cards, and credit at least S$1,600 salary.
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