SINGAPORE - United Overseas Bank has launched a scheme to help Singapore's millennials in the workforce start building their wealth early in life.
In a release issued on Tuesday (Jan 2), UOB announced the Young Professionals Solution (YPS) which will allow emerging affluent millennials between 24 to 35 years of age, to "sweep" interest earned on their UOB One Account, and rebates from spending on their UOB Yolo credit card into a unit trust called the United SGD Fund.
UOB is the only bank in Singapore to use the sweep function to enable their customers to invest. Through YPS, it has waived the 2 per cent online sales charge and has also reduced the minimum initial investment amount required to S$10, instead of the usual S$1,000.
The scheme was launched even as a survey conducted by UOB in 2016 found that millennials held back from investing due to high upfront fees and their preference for cash savings as well as high minimum purchase amount for unit trusts.
"Today's young professionals are 10 years away from their peak earning power. As they have time on their side, it would be prudent for them to start building their wealth early," said Mr Dennis Khoo, head of UOB's personal financial services in Singapore. "It helps if they see that instead of just cash savings alone, there are benefits to be reaped from the combination of both saving and investing."
Of UOB's millennial customers, 67 per cent already have a UOB current or savings account.
"By reducing the minimum investment amount and incorporating the automated sweep on their credit card rebates and earned interest from their current account, the YPS enables them to enjoy the benefits of investing even as they spend in keeping with their lifestyle needs," said Mr Khoo.