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Choosing a bank account can be both simple yet difficult. While we can choose to keep our existing bank accounts, in the current high inflation and high interest rate environment, maintaining the status quo can cost us.
Not choosing to switch to a high interest savings account will not only mean that we are missing out on the bonus interest we could have gained, but that inflation is also steadily eroding the value of our savings.
Yet, with various options for high interest savings accounts available to us, how do we hunt for the right one that suits us? Everyone has different preferences and circumstances and here are the reasons why I chose the UOB One Account as my high interest savings account.
The UOB One Account Offers Both Simplicity And High Interest
As an editor for DollarsAndSense, it is my job to know about the various financial product offerings on the market, including high interest savings accounts. However, in my personal life, I prefer to keep things simple and would rather go for a bank account that is simple to use and is easier to meet the requirements to earn high interest.
With the UOB One Account, I don’t have to make any trade-off between simplicity and high interest rates. It only takes two simple steps – credit card spend and salary credit/ GIRO transactions – to earn up to 7.8% p.a. interest.
To earn the high interest rates, I only need to spend a minimum of $500 monthly on an eligible UOB credit/debit Card and credit a minimum salary of $1,600 to my UOB One account. If I don’t or can’t meet the salary credit requirement, I can also make 3 GIRO debit transactions per month.
Just meeting the minimum $500 card spend and salary credit will allow me to earn 3.85% in total interest ($1,155 a year) on the first $30,000 of savings. The best part is that as my savings increase, the bonus interests I earn also increase.
As I already have a UOB Credit Card, and would easily hit the minimum spend of $500 each month, all I needed to do was to credit my salary to my UOB One Account.
This only required me to make a simple, one-time effort to inform HR about my change in banking details. The change was so quickly executed for my next salary cycle that I wish I had done it sooner.
UOB One Card Is A Great Credit Card That Fits My Lifestyle And Offers The Highest Cashback Of Up To 15% Cashback
Many times, we get caught up with meeting the minimum card spend to earn the bonus interest that we forget about the actual benefits that a credit card can also give us.
One of the reasons why it was seamless for me to switch to the UOB One Account as my preferred high interest savings account, is due to the fact that I already have and use the UOB One Card as my main credit card.
The UOB One Card offers up to 15% cashback on my daily spend. The tiered cashback system also allows me to benefit from the cashback even during periods when my spending isn’t as high.
Meeting the minimum spend of $500 per month (for every qualifying quarter) is easy as I put all my daily and household spending on my UOB One Card. By doing this, I also benefit from the additional and enhanced cashbacks in my daily life as these are delivered on brands I already frequent.
I use SimplyGo for my daily commute, Grab for the days when I’m running late or too lazy/tired to cook and Shopee for my online shopping. The nearest supermarket to my home is Giant, and next to it is a Guardian for my health and beauty needs. I also pay my SP utilities bills with my UOB ONE Card which earns me an additional 1% cashback. Essentially, there is a wide range of categories from groceries to online shopping and transport to earn accelerated cashback on. Even if you don’t spend with these brands, you can still earn up to 3.33% on all other retail spend.
In a typical month, my commute, transport, utilities, groceries and online shopping would easily meet the $500 minimum spend requirement.
Based on the rebate calculator, this will earn me $50 in basic quarterly cashback and an additional monthly cashback of $21. So, in total, I will earn $452 in cashback each year based on the $500 min spend (or 7.5% cashback in total). Any additional payments I make (e.g., for dining, travel, fitness classes) will add to my qualifying spend for more cashback.
Below is a conservative estimate of how much cashback my monthly spend can earn me.
|SimplyGo for daily commute||$100|
|Grab for occasional rides and food||$50|
|Singapore Power for utilities||$100|
|Giant, Guardian and other Dairy Farm international merchants for groceries and health and beauty needs||$150|
|Shopee for online shopping||$100|
|Total Monthly Spend||$500|
|Quarterly cashback (3 months)||$50|
|Additional monthly cashback||$21|
|Total cashback in a year||$452 (about 7.5% cashback)|
I don’t drive, but for drivers who regularly top-up fuel at SPC or Shell, using a UOB One Card for payment is a must because you will enjoy discounts of up to 22.66% (SPC) and 21.15% (Shell) when you pay using your UOB One Card.
Savings at SPC
Savings at Shell
For those who prefer debit cards, or cannot meet the income requirements of the credit card, there is also the option to use the UOB One Debit Card. Users of the UOB One Debit Card can also enjoy cashback benefits of up to 10% with similar merchants to that of the One Credit Card. For added convenience, the One Debit Card can also be used for cash withdrawals both in Singapore and overseas.
UOB One Account And UOB One Card Work Together To Give High Interest And Cashback
While the UOB One Card is great on its own, using it in combination with the UOB One Account is how I can maximise its benefits.
By crediting my salary to my UOB One Account and continuing my credit card spending on the UOB One Card, I earn both high bonus interest and cashback.
Based on a savings balance of $30,000, this will earn me $1,155 in interest and $200 in cashback in a year. This doesn’t include the additional and enhanced cashback I’ll get from patronising my favourite brands that will add $252 in cashback. This means in total, I earn $1,407 ($1,155 in interest and $452 in cashback).
This interest and cashback will increase when my savings hit the next bonus tier or if my qualifying spending increases.
Even then, the amount shown above is far from the maximum interest one can earn. Those who have an account balance of $100,000 and perform the two simple steps (card spend of at least $500 a month + salary credit of at least $1,600) will be able to earn an annual interest of $5,203 a year, or about $433.58 a month – possibly enough to cover monthly fuel costs or grocery spending!
Easily Track Bonus Interest With UOB TMRW App, And Never Miss Out On Your Monthly Bonus Interest!
While I like to optimise my interest earned, I don’t always have the time or effort to do so.
This is where the UOB TMRW, an all-in-one banking app available on both Google Play (for Android users) or the App Store (for iOS users), can help me. UOB TMRW not only functions as a mobile banking app but also offers additional insights and trackers to help me make the most out of the UOB One account.
More importantly, it ensures I never miss out on my bonus interest each month due to not hitting the minimum spend required.
Upon opening the app, I can immediately see some recent insights. These are personalised reminders and, based on our saving habits, we will also receive reminders to not miss out on topping up our UOB One Account balance to unlock the next tier of bonus interest.
For example, my UOB TMRW app helped me to save time by reminding me that my salary has been credited (and to set aside a portion to invest), my bonus interest has also been credited and I can spend smarter by using my UOB One Card on taxis/ride hailing services to earn additional cashback.
I can also easily access the interest tracker to see how much interest I have earned or will be earning with the UOB One Account. Just tap on Accounts > One Account > Details.
If I am missing a step from getting the higher bonus interest, I can also check this in the interest tracker. Just tap View Activities. This not only check which steps are missing, but also how far away I am from fulfilling them.
With The UOB One Account & One Cards, We Can Earn High Interest & Highest Cashback Without Any Hassle
While many high interest savings accounts have multiple hurdles to cross to attain their high bonus interest, the UOB One Account makes it easy and simple for most people to attain the bonus interest.
The bonus interest and cashback systems are also tiered in such a way that even people who don’t spend or have lower savings can also benefit from the bonus interest. Meanwhile, those who have higher savings and spending can stack their way to greater bonus interest and cashback.
On top of that, when we use the UOB One Cards (One Credit Card or One Debit Card), we also earn additional and enhanced cashback. Selected merchants are also well curated to cover the typical expenses of an average household, making it easy to meet the minimum spend requirements without needing us to deliberately spend more than we normally would.
For myself, switching to UOB One Account as my main savings account was an easy choice and a good fit for my lifestyle. If earning high interest without dealing with the hassle of meeting various requirements sounds good to you, consider signing up for a UOB One Account today and UOB One Cards today!
Enjoy up to S$368 cash credit when you sign up for UOB One Account and One Cards by 28 February 2023. Terms and conditions apply. SGD deposits are insured up to S$75k by SDIC.