New OCBC 360 and UOB One Account

The new "enhancements" to OCBC 360 in my view still makes it worth while to maintain 60k holding, if your salary is credited into it. 1.2%(salary) + 0.5%(pay 3 bills) + 0.5%($500 cc spending). That gives you a max of 2.2% interest p.a for the 60k. If we dont include the incremental bonus thats $1320 a year of risk free cash. Click here for full details on the new OCBC 360.

UOB one account is a new addition where you only need to fulfill two criterias($500 spending on Uob one card and salary crediting/make 3 giro payments). It gives you a 2.43% interest pa for your first 50k. Theorectically, you can use both accounts simultaneously as they are non overlapping. Click here for full details on the new UOB One account.

First method of spending and allocation: You can spend $1000 a month to get the max 2.2% for 60k(360) and 2.43% for 50k(UOB one). In my view its not worth it to use cc spending for 360 now to get the measly 0.5%

Second method of spending and allocation: You can spend $800 a month to get 1.75% for 60k(360) and 2.43% for 50k(UOB one). Spending $800 a month for your UOB one account gives you the 3.33% tiered rebate from the card if you can consecutively do it for three months. You can consider cancelling your giro payment for SP service and make credit card payment at PWC building(thats the only way you can pay your gas/water bill using your UOB one card. This will make it easier for you to hit $800 spending.

Third method of spending and allocation: Which is for those who do not have salary credited to their 360. Transfer your money out from 360(leaving min balance of $3000) to UOB one(50k) and the rest to CIMB starsaver(0.8%). Make sure you have 50k in UOB one account first as that account is tiered and will only work best with 50k. Make use of the OCBC 360 1% interest incremental bonus by transfering funds to and fro from starsaver to 360 on alternate months. That way you get 0.8% for one month and 1%(for the principal transfered) + 1.05%(for the first 60k, if you pay three $1 bills and spend $500 with Frank). Do note the incremental bonus cap for 360 is $1mil and the starsaver cap is $750k. That gives you an avg interest of 1.425% for the principal transfered to and fro with a big cap.

As I am currently still using DBS multiplier to credit my salary(most hassle free tiered approach in my view). I will be using this method from May onwards.

The three giro payment you can either giro three useful credit cards like UOB one(for your $500 or $800 spending), Frank card(mrt) and ANZ Optimium(for groceries). Alternatively, you can just use UOB one card and activate the ATU flash pay top up on it giro that card and giro your CPF and Medisave/property tax).

I foresee more risk free interest rate increments from our local banks as we move nearer to the issuing of the much anticipated Singapore Saving Bond. Hope this is of help to you.