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Why I Choose OCBC 360 Account over UOB One Account! (Updates For 2020)

Today, I will be also showing you why choosing OCBC 360 Account over UOB One Account is the way to go for 2020!!

With so many different savings accounts that market themselves as having the ‘highest interest guaranteed!’ It is no wonder we are spoiled for choices.

Not to worry because today I will be sharing my analysis of OCBC 360 account and UOB One account

This article will provide how each account works and how interest is calculated as well as relatable scenarios to better understand and help us make these difficult choices.

OCBC 360 Account

Fees and eligibility of the OCBC 360 Account:

To be eligible to open the account, you will have to be 18 years of age.

  • An initial deposit of $1,000
  • No monthly account fees charged
  • If your average daily balance falls below S$3,000, a Fall-below fee of S$2 (Waived for the first year) will be charged.

Revision of Interest Rates for OCBC 360 from 1 July 2020

From 1 July 2020 onwards, OCBC has remove the Spend Category.

OCBC 360 Interest rate table

How does the OCBC 360 account work?

OCBC 360 how it works

Source: OCBC

Due to changes from 2nd May 2020, you just must credit at least $1,800 of your salary.

From 1st July 2020 onwards, OCBC has removed their spend category!!

Unlike other savings account that requires you to credit your salary plus fulfil other categories to earn interest like the DBS Multiplier account.

The OCBC 360 account provides more flexibility by allowing you to just fulfil any of the categories to receive the bonus interest except with the grow bonus which requires a $200,000 daily balance which many of us won’t have.

Best credit card to pair with OCBC 360 Account

OCBC titanium rewards cards
OCBC 90°N Card

There are two credit cards to achieve the $500 spending which are OCBC titanium rewards and 90°N, however, in my opinion, they are not very favourable to most individuals.

90°N is great for travel and Titanium Rewards is good for electronics and clothing, but unless you’re regularly traveling, buying electronics, or shopping for clothes with a minimum spend of $500 per month, none of these are everyday categories.

These are cards that shine when you have large, one-off transactions to be made, not regular everyday spending.

On the other hand, the best or closes option is the OCBC 365 credit card but it requires a minimum spend of $800 which to me is also not worth it.

OCBC 360 Interest calculator

According to OCBC 360 Interest calculator , if you credit $1,800 of your salary and spend at least $500 with OCBC credit cards. You will get an interest rate of 1.45%p.a!!!

UOB One Account

Fees and eligibility of the UOB One Account:

To be eligible to open the account, you will have to be 18 years of age.

  • An initial deposit of $1,000
  • Fall below fee of S$5/month (below S$1,000 balance)
  • S$30 for the closing of account within 6 months of opening
  • Salary Credit of $2,000

UOB One Account Revised Interest Rates from 1 May 2020

UOB One Interest rate table

How does the UOB One account work?

UOB One interest table

According to their website, UOB One account offers “up to 3.68% p.a.” interest. But Looking at the breakdown above, interest is calculated based on the account balance. Therefore, the only way, to get 3.68% p.a. is to have more than $60,001.

As you can see above if you are just spending $500 on your UOB One card you will receive 0.50% p.a. regardless of your account balance.

However, when you spend $500 on your UOB One card plus credit your salary or perform 3 Giro transactions, the interest rate is higher and goes according to your account balance.

According to my opinion, I do not think many individuals will be keeping that much spare cash in their bank and would rather invest or planning to use it to make a big purchase.

Looking at the table above, you can see clearly see that earning interest up to 3.68%p.a. is an inflated number!!

By taking $1,347 divided by $75,000 will give you only 1.80%!!!

Take a close look at their terms and condition below!!

UOB One Terms and Conditions

Best Credit Card to pair with UOB One Account

UOB One card
UOB YOLO card

I love how UOB think of their customers by introducing the UOB One credit card. Amazing how they gave their signature bank account and the credit card the same name!!

With the minimum spending of $500 each month, having the UOB One card is the best option!!

By spending consecutively for three months, you can receive a cash rebate of $50!!

That is $200 in a Year!!!!!! Wow!!!

Plus, also fulfilling that with salary crediting gives you 1.25% p.a. and up of interest rate!!

Talk about desserts after a meal!!!

If you are someone who loves to have weekly weekend meals at a restaurant or just love grabbing! You can opt for the UOB YOLO Card.

UOB Yolo Cashback Table

UOB YOLO cashback table

As you can see from the table if you are like me busy working during the weekdays and partying hard over the weekends!! 

By spending $100 plus $380 plus $120 equals $600 which gives you about $40 cashback!!!

Scenarios and which account!

Scenario 1: fresh Graduate with a salary of $2,500 

With the changes of interest rate by OCBC, it might be better to switch to UOB One!!!

Let’s start with OCBC 360 Account

If you are a fresh graduate with a salary of $2,500, after CPF contribution your take-home pay will be $2,000 with an account balance of $15,000.

Assume you credit your salary and save at least $500 from the previous month (Salary Credit + Transaction in 1 category).

Your total interest earned is 0.6%(salary) + 0.2%(save) + 0.05%(base Interest) = 0.85%.

Compare it with UOB One account

By spending $500 on your UOB one card plus crediting your salary or making 3 giro transactions, your total interest will only be 1.25%

Obvious choice UOB One account will be a winner!!

Word Of Caution!!!

In my opinion, it might not be advisable to change your account due to the interest rates as UOB might cut their interest rate as well!!!

Scenario 2: 30-year-old male with a salary of $5,000 plus account balance of $60,000

Let’s start with OCBC 360 account

If your salary is $5,000, after CPF contribution your take-home pay will be $4,000.

Assume you credit your salary and save at least $500 from the previous month (Salary Credit + Transaction in 1 category).

Because your account balance is $60,000. You earn the interest of the first tier of $35,000. Therefore, your interest amount will be $35,000 X (1.2%+0.2%+0.05%) = $507.50

The remaining amount of $25,000 will earn the interest of the next tier. Therefore, your interest amount will be $25,000 X (2.4%+0.4%+0.05%) = $712.50

Your total interest rate will be ($812.50+$577.50)/$60,000 =  2.03%

Compare it with UOB One account

By having $60,000 in your account balance, your total interest rate is $795/$60,000 = 1.33% if you spend $500 on your UOB one card plus crediting your salary or making 3 giro transactions.

Obvious choice OCBC 360 Account will be a winner!!

Conclusion and my personal choice

After a detailed analysis and reading through their terms and conditions. It will be impossible for me to earn the 3.68% that UOB One account offers!!!

Moral of this article is always read the terms and conditions and really understand what you are applying!!! As the saying goes “Knowledge is the new rich, arm yourselves with it.”

For fresh graduate starting like me, OCBC 360 account is a better choice as crediting just my salary & saving a minimum of $500 will already give me 0.85% which is much lower than OUB One account which offers just 1.25%!!!

But If my account balance goes up, OCBC 360 looks to be the better option!!

Honestly, UOB might cut their Interest rate as well!!

So, I will be sticking with OCBC 360 account on this as the main winner!!!

Also recommending you to our youtube community! Check this sharing on the future digital bank!

Last updated on June 4th, 2020 at 05:30 pm

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