Crediting salaries to bank accounts is a protocol that almost every employer in Singapore practices, so it makes sense that banks are targeting salaried working professionals and getting them to put their incomes with them. The main draw of these salary credit accounts is a higher interest rate that is packaged with other benefits or perks that cannot be found with other savings accounts. We take a look at some of the more popular salary accounts in Singapore today.
1) OCBC 360 Account
The Basics: The OCBC 360 Account was a hot favourite for a while thanks to having the highest interest rates around. That, however, has sizzled down to a modest base interest rate of 0.05% along with a 1.2% salary bonus for minimum salary credit of $2,000.
Features: To get the full benefits of the 360 account however, a few regulations have to be followed. Qualifying for an additional 0.5% interest rate per annum requires account holders to pay a total of 3 bills through OCBC’s online banking site or through GIRO. In addition, a total of $500 must be spent using an OCBC credit card. There are added ways to increase the annual interest rates as well, and this comes with either ins uring or investing in additional plans with OCBC (such as their Endowment plans). Keep adding to your account, making sure that your balance every month increases, and you’ll be eligible for a 1% interest based on the incremental amount. The initial deposit to open this account is $1000 and there is a need to maintain average daily balance of $3000.
Conclusion: A very attractive program to keep your money with, the OCBC account works best if you are sure that you will utilise every single function to get the most interest rates.
2) DBS Multiplier Programme
The Basics: A strong contender to the OCBC 360 Account, the DBS Multiplier programme works based on the amount of cash flow activity you have with the bank. This can include four categories such as salary crediting, credit card expenditure, home loan instalments as well as investment dividends.
Features: The minimum interest rate is 0.05% which increases only with a monthly banking activity cash flow of $7500. Then interest rates start from 1.08% and can go as high as 2.08% if the banking cash flow hits a minimum of $20,000 and above. While there is no minimum expenditure for each category, as long as the accountholder hits the monthly value necessary for activation of the interest rate. There is also no need to perform banking activities in all 4 categories, so if you’re earning about $8,000 monthly you are already eligible for the 1.08% interest. Average daily balance must be kept at $3,000 or a fall-below fee of $5 will be charged.
Conclusion: With more flexibility in the terms of the program, the DBS multiplier account would be beneficial for those who do not want to meet too many banking requirements just to get better interest rates. On the other hand, it allows those with smaller incomes but who perform a good chunk of banking activity with DBS to join in as well.
3) UOB One account
The Basics: Bringing a diversity of choice to consumers in this category, the UOB One Account promises interest rates of up to 3.33% – that is if you ensure that you meet their minimum requirements which include credit or debit card expenditure as well as salary crediting.
Features: There are 2 main schemes with this account. For the first scheme, accounts with amounts of $10,000 or below will be eligible for a 1% annual interest rate, as long as they spend at least $500 on the UOB credit card or debit card. The interest rates increases as more funds is put into the account with the best rate at 2% for funds at $50,000.
The second scheme requires a minimum spend of $500 on a credit card or debit card, and another compulsory step with two choices. That is, one can choose if they would prefer to credit their salary with a minimum of $2,000 monthly or choose to pay 3 bills through that account monthly by GIRO. This either or option for the second scheme adds some pliancy, allowing those with not so regular incomes to open an account as well. At this stage, interest rates go a little higher. From 1.5% with minimum account funds of $10,000 to an interest high of 3.33% with a minimum of $50,000 in the account.
An initial amount of $500 is required to open the account, and this minimum balance must be maintained or a $2 fall-below fee is charged.
Conclusion: The UOB One Account is another great choice for crediting salaries to since a good level of flexibility is allowed in terms of fitting the available schemes to one’s needs. While the interest rates seems to be the highest, a higher amount of funds is required to be eligible.
Written by Claudia Li.
About the Writer: A 90s kid, Claudia is always on the lookout for the best credit cards to supplement her lifestyle. She isn’t afraid of credit card salesmen who approach in public for a chat, and constantly works out the best ways to save on any transaction with her arsenal of cards. Previously in the marketing industry, she now writes on various topics including personal finance, business marketing and other interests.