Local banks DBS, OCBC, and UOB are cutting down their interest rates on savings accounts amid the coronavirus outbreak. Reasons cited for this move include macro uncertainties and a low interest rate environment. Scroll down for the lowdown on the revised interest rates, and if you’re looking to manage your finances better, read our Smart Money guide here.
Revised DBS Interest Rates
DBS will again this year cut rates on its flagship deposit account from Aug 1 amid a low interest rate environment and macro uncertainties.
This comes two months after a set of rate revisions for the DBS Multiplier account that took effect on May 1. The latest changes affect interest rates that are applied to account balances of up to the first $50,000.
For example, when customers credit an income stream – defined as a salary, dividends, or both – into the Multiplier account and make just one more DBS transaction in an eligible category to total between $2,000 and $2,500 per month in transaction value, the interest rate for the first $25,000 will be halved to 0.7 per cent per annum from Aug 1, from 1.4 per cent per annum currently. It was previously 1.55 per cent per annum before May 1.
For customers who credit their income into the Multiplier account and make just one more DBS transaction in an eligible category that add up to at least $30,000, the rate on the first $25,000 will be cut to 1.3 per cent per annum, from 2 per cent per annum.
Interest payouts for amounts where customers credit income and make two more DBS transactions in two separate eligible categories, will similarly be cut. Rates will be reduced across the board from Aug 1, for the first $50,000 in the account balance.
For example, if a customer credits an income and makes two other transactions that add up to between $5,000 and $15,000, the interest rate applied on the first $50,000 will be reduced to 1.8 per cent per annum, from 2.2 per cent per annum.
DBS also expanded the types of qualifying dividends that count as an income stream. For example, they will accept dividends of equities listed in all markets, and the bank’s unit trusts. The bank will also accept dividends credited into a Supplementary Retirement Scheme (SRS) account, and in a CPF Investment Account.
Revised OCBC Interest Rates
OCBC said on its website on June 1 that it will reduce the salary credit bonus interest for customers on the OCBC 360 savings account from July 1, amid a weakened interest rate environment and a challenging macro climate.
For balances up to $35,000, the salary credit bonus interest will be halved to 0.6 per cent, down from the current 1.2 per cent. Balances between $35,000 and $70,000 will earn 1.2 per cent interest, down from 2.4 per cent.
The base interest is calculated at the end of each day, based on the daily balance and credited to the 360 account at the end of the month.
The bank will also stop offering the credit card spend bonus interest – currently at 0.2 per cent for the first $35,000 and 0.4 per cent for the next $35,000 – on the 360 account from July 1.
Revised UOB Interest Rates
UOB One account holders will receive 0.5 per cent per annum if they spend at least $500 on eligible cards in one calendar month on their first $15,000, down from 1.5 per cent.
Those who meet the $500 card spend and credit their salary or have at least three Giro debit transactions will get 1.25 per cent per annum, down from 1.85 per cent.
Text: Aw Cheng Wei / The Straits Times
Additional reporting: Natalie Choy / The Business Times