UOB lowers interest rate on flagship One Account following OCBC’s 360 Account cut
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From May 1, the maximum interest rate on One Account will be cut to 3.3 per cent per annum on the first $150,000, down from 4 per cent.
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Tan Nai Lun
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SINGAPORE – UOB will cut interest rates on its flagship savings account, the One Account, in line with interest rate expectations.
With effect from May 1, the maximum interest rate will be cut to 3.3 per cent per annum on the first $150,000, down from 4 per cent.
Ms Jacquelyn Tan, UOB’s head of group personal financial services, said that the move is to align with longer-term interest rate expectations.
The qualifying criteria to earn the bonus interest is unchanged, she said.
“We have also retained the eligible balance of $150,000 to earn the highest effective interest rate,” she added.
Still, it is the second year in a row that UOB has cut rates on its One Account. Prior to May 2024, the One Account offered up to 5 per cent per annum on deposits up to $100,000.
Ms Tan said UOB One Account customers who spend on their UOB One debit card will continue to receive cash rebates of up to 3 per cent for selected spend categories.
From now to March 31, 2026, account holders can earn up to $600 in cash rebates if they make monthly Giro payments for their income tax from their UOB One Account, she added.
UOB joins OCBC Bank in cutting rates on its flagship savings account in 2025.
Earlier in March, OCBC announced it would cut rates on its 360 Account in line with prevailing market conditions.
From May 1, the maximum effective interest rate for the 360 Account will be cut to 6.3 per cent per annum on the first $100,000, from the current 7.65 per cent.
Meanwhile, interest on the “grow” category will fall to 2.2 per cent on the first $100,000 from 2.4 per cent, while the qualifying criterion for the category will be raised to $250,000, from $200,000.
DBS Bank has so far not made any interest rate changes to its Multiplier Account.
The US Federal Reserve cut rates four times in 2024, while markets expect more rate cuts to be announced later in 2025. THE BUSINESS TIMES
