SINGAPORE: United Overseas Bank (UOB) has announced another interest rate reduction for the second year in a row for its flagship savings account, the One Account, which is in line with interest rate expectations. Starting May 1, the maximum interest rate will drop to 3.3% per annum on the first S$150,000, down from the current 4%, as reported by The Business Times.
Before May 2024, UOB’s One Account had a maximum interest rate of 5% per annum for deposits up to S$100,000.
Earlier in March, Oversea-Chinese Banking Corporation (OCBC) also announced it would cut rates on its flagship savings account, the 360 Account, amid prevailing market conditions.
Effective May 1, the maximum interest rate for OCBC’s 360 Account will fall to 6.3% per annum on the first S$100,000, down from 7.65%.
In addition, the interest rate for the “grow” category will decrease from 2.4% to 2.2% on deposits up to S$100,000. The qualifying balance for this category will also increase from S$200,000 to S$250,000.
Netizens were not pleased with the news, with one commenter saying, “They lure you to open these accounts with a lot of requirements to earn the additional interest, then they just drop the rate.”
Another noted, “All banks in Singapore have the lowest savings interest, but loans from banks pay the highest interest.”
One commenter wryly added, “Great! With the GST increase on top of global inflation, rental rise, and banks slashing interest rates to reduce the cost of doing business at our expense by lowering savings interest rates, next they should increase loan interest rates.”
Last year, the US Federal Reserve cut rates four times. This year, markets anticipate more rate cuts will be announced. /TISG
Read also: UOB CEO’s pay drops 5.5% in 2024 despite record profit
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