OCBC to cut maximum interest rate for flagship savings account from May 1

SINGAPORE - OCBC Bank is cutting the maximum interest rate for its flagship savings account in line with lower rate expectations, the bank said in an e-mail to customers on March 31.

With effect from May 1, the first $100,000 in their OCBC 360 Account can earn up to 4.45 per cent per annum, down from 5.45 per cent currently. It is the first time in 2026 that OCBC has trimmed the maximum effective interest rate for the 360 Account, following two cuts in 2025. “In line with broader market conditions, OCBC will adjust the OCBC 360 interest rates from May 1, 2026, while keeping all bonus interest criteria unchanged,” said an OCBC spokesperson.

To earn the maximum effective interest rate, account holders will have to credit their salary of at least $1,800, spend at least $500 on selected credit cards, increase their average daily balance by at least $500 monthly, purchase an eligible insurance product and buy a selected investment product from the bank.

Customers will continue to earn an unchanged base interest rate of 0.05 per cent a year on their account balance regardless of whether they fulfil the above categories, according to the e-mail.

OCBC group research head of foreign exchange and rates strategy Frances Cheung said that the bank continues to expect one 25 basis point cut in the US Fed funds rate in 2026. “But we are pushing this expectation to third-quarter 2026 from June, upon upside risks to inflation in the near term,” she noted in a March 19 note.

Banks earn less when interest rates fall mainly because their net interest margin – the difference between interest earned on loans and interest paid on deposits – shrinks. As rates drop, banks must lower the interest rate they charge on loans faster than they can reduce the interest paid to savers. 

UOB lowered its interest rates in December 2025, following earlier cuts in May and September 2025.

UOB One Account holders earn up to 3.4 per cent a year for balances up to $150,000, when they spend at least $500 on selected credit and debit cards, as well as credit a minimum salary of $1,600 each calendar month.

DBS Multiplier account holders, meanwhile, earn up to 4.1 per cent per annum for the first $100,000.

To hit the maximum rate, customers must credit their salary and transact in three or more categories such as credit card or DBS PayLah! or retail spend, as well as home loan instalments, investments and insurance.

Total transaction value must be $30,000 and above.

Ms Chelsea Ling, the bank’s head of deposits and secured lending for its consumer banking group, said DBS Multiplier is designed to provide competitive yet accessible benefits, noting that its rates have held steady since 2022.

“DBS Multiplier customers have risen by more than 50 per cent since 2022 and momentum remains strong,” she said.