[SINGAPORE] UOB will cut interest rates on its flagship savings account, the One Account, in line with interest rate expectations.
With effect from May 1, the maximum interest rate will be cut to 3.3 per cent per annum on the first S$150,000, down from 4 per cent.
This is the second year in a row that UOB has cut rates on its One Account. Prior to May 2024, the One Account offered up to 5 per cent per annum on deposits up to S$100,000.
From May 1, the maximum effective interest rate for the 360 Account will be cut to 6.3 per cent per annum on the first S$100,000, from the current 7.65 per cent.
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Interest on the “grow” category will also fall to 2.2 per cent on the first S$100,000 from 2.4 per cent, while the qualifying criteria for the category will be raised to S$250,000, from S$200,000.
Tan Siew Lee, head of group wealth management at OCBC, said: “With interest rates softening over the past one year, the impact has been felt across financial products.”
The rates are adjusted in line with prevailing market conditions while keeping the product competitive, OCBC’s Tan said.
Meanwhile, UOB head of group personal financial services Jacquelyn Tan said the qualifying criteria on the One Account remains unchanged and is “one of the simplest and easiest in the market”.
She said the majority of the bank’s One Account customers have earned bonus interest over the past 12 months, of which customers aged 30 to 39 have been the most motivated to qualify.
The US Federal Reserve cut rates four times in 2024, while markets expect there will be more rate cuts announced later this year.
