UOB Interest Rates Drop, What Are Better Fixed Deposit Options?
04-03 11:44uSMART

Hot News! UOB Lowers Interest Rates on One Savings Account Starting May 1st

As the possibility of future rate cuts by the Federal Reserve increases, UOB has announced that it will lower the interest rates on its flagship savings account starting from next month, becoming the first local bank to do so.

In a letter sent to customers today (1st), UOB announced that it will lower the interest rates on its One savings account, aligning with the expectations of a long-term interest rate environment.

Currently, customers who deposit between S$30,000 to S$ 100,000  spend more than S$ 500  per month on their bank cards, and credit a monthly salary of over S$ 1,600  can enjoy bonus rates ranging from 3.85% to 7.8%. From May 1st, the range of bonus rates will be adjusted to 3% to 4.5%.

However, at the same time, for deposits of S$ 125,000, the portion exceeding S$ 100,000 to S$ 125,000 will enjoy an interest rate of 4.5%, which is currently only 0.05%.

Additionally, for deposits of S$150,000, the portion exceeding S$ 125,000 to S$ 150,000 will enjoy an interest rate of 6%, which is also currently only 0.05%.


Fixed Deposit Interest Rates

Fixed deposit interest rates refer to the rates that banks or financial institutions pay to holders of fixed deposit accounts. These rates are typically fixed for a specific period of time and are guaranteed, meaning that regardless of changes in the market conditions, depositors will receive the agreed-upon rate. Additionally, some may have minimum deposit amounts.

According to information from the Monetary Authority of Singapore (MAS), accepted deposit-taking institutions in Singapore include full banks, wholesale banks, commercial banks, and finance companies.

One key distinction between fixed deposit interest rates and other types of rates is that they generally offer higher rates due to the long-term commitment involved. While you can withdraw funds from a fixed deposit, if you withdraw before the maturity date, you may incur early withdrawal penalties and/or earn less interest or no interest at all.


Banks with Fixed Deposit Interest Rates in Singapore

Note: The above information is based on publicly available information from banks as of January 1, 2024. Banks may adjust interest rates at any time, please refer to the respective bank's official website for the latest information.


With the current trend of gradually decreasing fixed deposit interest rates, how can ordinary people hedge against inflation and safely grow their savings? Besides banks, many internet brokerages have also introduced various fixed deposit products with higher interest rates than banks. They often offer higher rates for new users, so let's not miss out.

For example, in a recent uSMART promotion offering a three-month USD interest reward, both new and existing users who deposit during the promotion period and participate in this USD interest reward activity can enjoy a guaranteed annualized return of 6%. This allows your idle funds to maximize their earnings for you!



How to Participate in the uSMART 3-Month USD Interest Reward Promotion:


uSMART APP -> Trading -> uSMART Interest Reward Promotion -> View Promotion Details.

2.Register for the Promotion:

Before the deadline, select the amount you wish to participate with in USD currency. Existing/new funds must be deposited into your account before submitting for the interest.

3.Maintain Cash Balance:

Keep the specified amount in cash balance in your account at any point during the promotion period.

4.Interest Rebate:

The promotional interest will be credited to your account within 3 working days after the end of the promotion period.




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We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

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