UOB One Account Challenges OCBC 360 with 2% and 3.33% interest. How they stack up.

Banks need money and seems the slowest of them all, UOB seems to be finally waking up to try to wrestle some of our deposits over. The unanimous winner have been OCBC with their 360 account, which provides up to 3% interest if you do 3 things with them.

However since Apr 2015 this year, OCBC have make it more difficult to earn this 3% with more clauses.

It is a good opportunity for UOB to prey upon our hurt and hate by offering their new UOB ONE Account.

The UOB One Account looks to offer us up to 2% and 3.33% interest for up to $50,000 in 12 months if we bank with them.

To earn up to 2% interest, you can just spend at least $500 every month on the UOB One card for 12 months. 

to earn up to 3.33% interest, you need to spend on the UOB One Card AND make at least a $2k salary credit or make 3 GIRO debt payments.

Note here: its not all your $50,000 earns 2% or 3.33%. The table shows the breakdown of your contribution. If you have less money in your UOB account, you can only hit less interest earn. This is unlike OCBC 360 which applies across whichever amount you put in up to $50,0000 (same)

If you have less money and able to satisfy the requirements, OCBC 360 looks better

If you have less than $10k or at most $10k, yet able to meet the requirements on both sides, you can at most hit 1% or 1.5% interest on your deposit, however with the OCBC 360 you can hit 2%.

If you have more than $35,000 and able to satisfy all the requirements, UOB One Account looks better

The cut off point when you are able to satisfy all the requirements seem to be at $35,000 where your UOB One Account will earn $716 versus $700 with the OCBC 360 account.

If you have $50,000, better to stick with one house

My initial thoughts are picking and choosing is better, but it seems if you have $50,000 or less, it is better to stick to one bank instead of mixing them up.

However, if you have $100,000 and satisfy all requirements, you can take advantage of both sides.

	OCBC 360	UOB ONE Account	Pay @ OCBC360, Credit Card and Payment @UOB One	Pay and Payment @ OCBC, Credit Card @ UOB One
$50,000	$1000	$1216
$100,000 split evenly			$500 + $1216 = $1716	$750 + $800 = $1550
$50,000 split evenly			$250+ $450 = $700	$375 + $325 = $700

UOB One Account’s Credit Card Deposit Interest Rate looks better

I felt the strength of UOB One is that if you have $50,000, you can earn $800 from the credit card alone versus $250 with the OCBC 360.

Summary

The way I look at it:

• Unless you felt $216 is very significant, perhaps its better to stick with OCBC 360 and save the hassle
• If you have $50,000, mixing it up doesn’t seem wise
• If you have $100,000, you have more ways to store your money and earn interest
• If you have more spending and GIRO payments, and you have $100,000, you stand to enjoy the greatest benefit as you can satisfy OCBC 360 AND UOB ONE max requirement since for UOB ONE max requirement, salary credit is not mandatory.
• One factor unevaluated, is credit card rebate. OCBC 360 online 6% seems a big determinant

So will you look to switch, mix and match with this UOB Competitive offering? Do let me know.

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