Goodbye OCBC 360, hello UOB One!

Jes 2 Comments

I am not at all surprised of the changes to the interest rate for OCBC 360 now. From 3.05% during their first introduction to 2.25%  (2 years back), this latest change that is going to happen on 1 April 2017 will result in only 1.85% for me. I will explain why it is probably time for me to say goodbye to OCBC.

Let's start with the changes:

Bonus 1) The amount of money that can earn interest has increased
Old Up to $60,000
New Up to $70,000

Bonus 2) Credit at least $2000 salary to the account
Unchanged 1.2% interest

Bonus 3) Pay any 3 bills via giro
Old 0.5% interest
New 0.3% interest and with at least $150 in total value

Bonus 4) Spend at least $500 on OCBC credit cards
Old 0.5% interest
New 0.3% interest

Bonus 5) Insure or invest with OCBC
Old 1% interest
New Up to 1.2% bonus interest paid for 12 months

Bonus 6) Increment in your account balance
Old 1% in the increase in account balance 
New 1% for the first $70,000 only if you have $200,000 *vomit blood*

What this means for me

I have mentioned before that I can only get Bonus 1 to 4, which will decrease my total interest from 2.25% to 1.85%. I will definitely not be able to get Bonus 6. 


The above comparison is why I plan to use UOB One as my primary account now. It will be better than OCBC 360 if you have at least $30,250 in your bank account and able to spend $500 every month. UOB One is also perfect for people who cannot satisfy the $2000 salary requirement or accumulate a total of $150 in the 3 GIRO transactions. For more comparison of all the different banks, check out this post with BOC, POSB, Stan Chart.

It's not just the bank accounts that I take into consideration, a comparison between UOB One card and OCBC 365 is also necessary. UOB One card gives 3.33% for all spending with a minimum spending of $500  for 3 consecutive months while OCBC 365 gives 3% for selected categories with a minimum spending of $600. I can usually hit the $600 spending on OCBC 365 which means the minimum spending on UOB One is not an issue for me.

So goodbye OCBC, it was a good run, I had good memories with you.

Hello UOB, please don't get too arrogant! Let's hope you do not decrease your interests too.

Jes

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2 comments:

  1. Hi Jes

    Whats the incremental benefits you will get in amount per month that prompts you to change? I'd always assume that its marginal.

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    1. Hi B,

      Yeah I realise I did not mention it clearly in my post. "It will be better than OCBC 360 if you have at least $30,250 in your bank account and able to spend $500 every month. UOB One is also perfect for people who cannot satisfy the $2000 salary requirement or accumulate a total of $150 in the 3 GIRO transactions." I have 1 of the the 3 conditions and going towards self employment which will decrease my OCBC drastically by 1.2%. I think the majority would be marginal change! Thanks for the good question.

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