Singapore’s local banks cut interest rates

Local banks in Singapore have cut interest rates on savings accounts, amid the coronavirus outbreak. OCBC Bank announced a further reduction in rates since May.

Following the weaker interest rate conditions, and the challenges within the Macro environment, the OCBC stated that it will minimize the salary credit bonus interest on the OCBC 360 savings account as of July 1, 2020.

The salary credit bonus interest for balances up to $35k will be cut in half from 1.2% to 0.6%. The balances between $35k and $70k will accumulate 1.2% which is much less than the initial 2.4% rate.

The OCBC will also cease to offer credit card spend bonus interest, currently at 0.2%, for the first $35k, and 0.4% for the next $35k as of July 1 on the 360 account.

The lender stated further that such changes in interest rates were unavoidable, but shall continue overlooking at the interest rate environment and improve its offerings should the conditions allow doing so.

Furthermore, United Overseas Bank and DBS Bank came up with interest rate cuts that were effective in the last month too.

United Overseas Bank account holders if they spend at least $500 on eligible cads, would then be entitled to receive 0.5% per annum, from 1.5% initially. Those who have at least three Giro debit transactions and meet the $500 card spend and credit their salary will be eligible to get 1.25% per annum, initially 1.85%.