A year ago (has it been that long already?), I came across the DBS Multiplier Account that offers the opportunity for higher interest rates (~2%) from savings. A year since, I've maxed out that account. My salary, dividends and POSB/DBS credit card bills are transacted with my POSB/DBS accounts. So they all count.
I've been earning good monthly interests on the $50,000 in that account. Any sum beyond that $50,000 however will only earn the pittance savings interest rate.
UOB One
The UOB One Account
More recently, I came across a similar offer from UOB marketed as the UOB One Account. It is a checking account as well. A minimum balance of $500 is required, else it incurs monthly charges. The wonderful thing is, it ties in with the UOB One Visa Card as well. This is a Visa Card that I already actively use (4 Ways to Reduce Spendings).
It offers two sets of rates which are tiered. In Case A, the rates are offered for card spendings of a minimum of $500 per month. It progresses on to Case B if on top of Case A, there is either (a) crediting of salary into this account, or (b) there are 3 GIRO transactions to it.
UOB One Visa Card
| Account Balance in your UOB One Account | Total Interest A♦ | Total Interest B♦ |
| First S$10,000 | 1.00% | 1.50% |
| Next S$20,000 | 1.50% | 2.00% |
| Next S$20,000 | 2.00% | 3.33% |
| Above S$50,000 | 0.05% | 0.05% |
I figured I ought to be able to able progress to Case B since I already typically spend more than $500 on my UOB One Visa Card, and it shouldn't be too difficult to set up three GIRO transactions to it as well.
| Min Requirement | Purchases made with UOB One Card | Rebate Earned | |||
|---|---|---|---|---|---|
| Statement date | 15 Aug | 15 Sept | 15 Oct | 15 Nov | |
| Total minimum monthly spend tiers | i | S$300 | S$300 | S$300 | S$30 |
| ii. | S$800 | S$800 | S$800 | S$80 | |
| iii. | S$1,500 | S$1,500 | S$1,500 | S$150 | |
| Minimum number of purchases per statement period. | 3 | 3 | 3 | ||
In fact, as illustrated in the above example, the UOB One Visa Card itself comes with up to 3.33% rebate on credit card bills so as long as the monthly spending threshold is met for all 3 months of that quarter, with at least 3 transactions per month.
Opening An Account
I happened to past by a UOB Branch last week. It was surprisingly empty. So I decided to walk in and open up an account. After getting a service ticket, I was immediately served by a friendly (they usually are) Customer Service Officer. I told you it was empty!
I got my account setup within 30 minutes. All I needed was my NRIC Identity Card and $500. Perhaps it was simplified because I am already an existing UOB customer - I already have their ATM card, Internet Banking account and the UOB One Visa credit card. Quite a breeze.
Savings & Spendings Benefits
If I successfully max this out, it would generate $150 + $400 + $666 = $1,216 a year on a capital of $50,000. An effective interest rate of 2.4%. That's $100+ a month.
And if also spend $1,500 per month on the UOB One Visa Card, that would be a total rebate of $150 x 4 = $600. That's another $50 per month.
Onward to build up the second tranche of $50,000 cash savings!
p/s: Are there better deals worth the while?
4 comments:
OCBC 360?
Dowz Keh,
Indeed, OCBC 360 would be a credible alternative. But it requires that salary be credited to it. Since I have only one salary, guess I can't split payments to different banks. Pity.
Credit the salary with OCBC to get the 1.2%, while paying for the bills with UOB (together with the other criteria) to get the maximum 2.43% EIR.
I guess if were to start work today, I could do that. But it's a buggeration now that I have so many things linked to my POSB/DSB account.
Post a Comment