We Said BOC Had The Best Savings Accounts In Singapore… And Got Punk’d

Earlier this week, we published an article about the top 5 savings accounts in Singapore. Within our list, we specially highlighted how the interest rates for the Bank Of China (BOC) SmartSaver “blew our mind” and that the “BOC SmartSaver provides the best deal for saving account.”

Little did we expect that on the very same day, letters were being sent out by BOC to their existing customers about changes for the BOC SmartSaver.

What Are The Changes?

# 1 Card Spend Bonus

Previous: Earn 1.55% interest per annum if you spend at least $500 across BOC Credit Cards and/or Debit Cards.

Now:

A) Minimum credit card/debit card spend of $500 – 0.8%.

B) Minimum credit card/debit card spend of $1,500 – 1.6%

We think spending a minimum of $1,500 per month is a little high for the average Singaporean.

# 2 Salary Credit

Now:

A) Credit Salary of minimum $2,000 per month – 0.8%

B) Credit Salary of minimum $6,000 per month – 1.2%

Again, we think that the average Singaporean will have difficulty crediting a salary of $6,000 a month.

# 3 Perform 3 Bill Payment or 1 BOC Mortgage Repayment

Previous: Interest of 0.6%

Now: Perform 3 bills payment of minimum $30 per bill, or 1 BOC Mortgage Repayment – 0.35%

Aside from lower interest, the additional caveat here is that bill payments must be a minimum of $30 each. That makes it slightly harder to earn the lower interest

# 4 Extra Savings For Amount Above $60,000 to $1,000,000

How Much Interest Can You Now Earn?

	Then	Now (Realistic)	Now
Card Spend	1.55%	0.8%	1.6%
Salary Credit	1.0%	0.8%	1.2%
Bill Payment	0.6%	0.35%	0.35%
Total	3.15%	1.95%	3.15%

 

While account holders could easily earn 3.15% p.a on their savings accounts previously, before the inclusion of base interest rates, this has now dropped to 1.95%.

Theoretically, the marketing tagline of being able to earn up to 3.15% still holds true. However, it’s a lot harder now compared to the past.

Is BOC Still The Best?

In spite of the latest changes, it would be an overstatement to say that the bonus interest given by BOC is no longer attractive. It’s no longer the best, but nevertheless, still on par with both the OCBC 360 and the UOB One Account.

If you are an existing BOC customer, there is a good chance that the interest rate that you earn would reduce, but not to the extent where you can actually earn much more elsewhere.

If you are an existing OCBC 360 or UOB One Account, switching the funds to a BOC SmartSaver account will no longer give you the additional edge you were hoping to earn.

Read Also: Best Savings Accounts In Singapore

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