For comparison, OCBC’s 360 Account pays off to 4. 65 per cent a year on the first S$ 100,000 when customers credit their salary, save at least S$ 500 a month and spend with the bank. The cost increases by 7 %. 65 % for those who also make bank-transferable investments and insurance purchases.
The Multiplier Account at DBS offers a highest interest rate of up to 4. 1 per cent a year for the first S$ 100,000 in deposits, if customers credit their salary to the bank and transact in three categories with a total volume of S$ 30,000 or more a month.
Industry watchers do n’t believe this will continue as other banks wait to move as the market anticipates potential rate cuts from the US Federal Reserve this year.
Top financial services manager at Phillip Securities, Elijah Lee, noted that the banks needed to move fast when raising interest rates, and that the others would likely do the same. ”
When that happens, the effort involved in switching saving accounts may not be quite beneficial.
THE RISK OF OVERSAVING?
Another discussion on online forum Reddit focused on whether to put more money, specifically S$ 150,000, into UOB’s One account.
The bank introduced two new levels that offer up to 6 % for those with more benefits, in contrast to the bank’s reduction of the first S$ 100,000 bonus interest.
For instance, account holders will receive 4. 5 per cent interest on S$ 25,000 after the S$ 100,000 mark. For the next tier of S$ 25,000, the rate increases by 6 %. From the current 0 to the current rate, both interest rates have increased. 05 per share.
This results in an increase in the effective interest rate for a customer with S$ 150,000 in deposits of 4 %.
To be honest, 4 % is not bad, but you must always think about the obstacles you must overcome in order to achieve that, according to Mr. Lee.
Choose take a step back and ask yourself if the increased interest is worth the additional steps you need to take if you are going to push yourself into something like buying a new card and paying more. ”