OCBC to cut interest rates for savings account from May 1
With the latest move, customers can earn up to 4.45 per cent a year on the first S$100,000 in their account, OCBC said in a notice on its website.
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SINGAPORE: OCBC will cut the interest rates on its 360 account from May 1, the bank said in an email to customers on Tuesday (Mar 31).
This comes on the back of two cuts that kicked in on May 1 and Aug 1 last year.
The savings account offers tiered interest rates on deposits, with higher rates for those who grow their account balance, spend a minimum amount on selected credit cards and conduct other activities with the bank, such as purchasing an insurance product.
With the latest move, customers can earn up to 4.45 per cent a year on the first S$100,000 (US$77,000) in their accounts, OCBC said in a notice on its website.
That will be for customers who credit their salary of at least S$1,800, spend at least S$500 on selected credit cards, increase their account balance by at least S$500 monthly, buy a selected insurance product and buy a selected investment product from the bank.
According to the website, the maximum effective interest rate is currently 5.45 per cent.
Local banks have been lowering interest rates since 2024, when the market began to expect the United States Federal Reserve to cut rates. That came after aggressive hikes in late 2022 when interest rates were expected to rise.
UOB most recently cut interest rates on Dec 1 last year. The bank said the rates were revised "to align with long-term interest rate environment expectations".
The maximum effective interest rate on the One account is 1.90 per cent per year for deposits of S$150,000, for customers who spend S$500 on eligible cards and credit a minimum salary of S$1,600 each calendar month.
DBS customers who credit their salary into a Multiplier account and transact in one or more categories can also earn higher interest rates. For example, a customer who credits his salary and spends at least S$500 on DBS PayLah! or a credit card will earn 1.8 per cent per annum on the first S$50,000 in the account.
The highest rate on the Multiplier account stands at 4.1 per cent per annum on the first S$100,000, requiring salary crediting and at least S$30,000 in transactions across three categories – such as credit card spend, home loan instalments, insurance and investments.
