# Analysing the OCBC 360 and the UOB One Account - Which One for You?

There are many differences between the OCBC 360 and UOB One Account but one thing they have is common is apparent - (much) higher interest rates on your savings. Personally, I use the OCBC 360 account but this does not mean it is better. It is simply more suitable for me based on my spending habits. **The first question though, is why bother with one of these accounts? **Why not just put your money into a regular savings account? The answer is simple - you earn at least 65X more interest (calculated using OCBC 360 account). To put that in numbers, you earn S$1,950 instead of S$30 interest each year!

**OCBC 360 (Get up to 3.25% Interest on up to S$60,000)**

If you earn at least S$2,000 a month and it is credited into your bank account through GIRO, you should definitely consider the OCBC 360 account since you can earn up to 3.25% (3.20% bonus + 0.05% base) Interest on the first S$60,000 of your account balance. Any amount that exceeds this S$60,000 threshold will earn a base interest of 0.05% per year. Also, you will get 1% per year on any incremental balance from the previous month's average daily balance.

I personally do not use any OCBC Credit Cards since they don't appeal to me at all - I'm a Miles guy and let's just say OCBC doesn't have the best Miles cards. I also do not insure or invest with OCBC and therefore I will not be earning that bonus interest rate. With all that being said, only the following categories are applicable to me:

- Base Interest: 0.05%
- Salary Bonus: 1.20%
- Bills Bonus: 0.50%
- TOTAL: 1.75%

Still, 1.75% is still a huge jump from the regular 0.05% (35X more!) and if you look at the maximum sum that will enjoy this bonus (S$60,000), you can essentially earn S$1,050 instead of a pathetic S$30 each year (not withstanding any bonus interest paid on interest accrued each month and incremental balances).

**UOB One Account (Get up to "3.33% Interest" for balances up to S$50,000) **

**UOB advertises a 3.33% interest rate but this is not exactly accurate. In reality, you will only earn approximately 2.43% interest p.a. **with a S$50,000 account balance (with is the threshold amount). While the criteria for enjoying the maximum bonus rate is significantly more relaxed when compared to OCBC 360, you only earn 3.33% interest on S$20,000 out of S$50,000 of your balance. The maximum interest you can earn on the threshold amount (S$50,000) is as follows:

UOB One Account Summary | ||
---|---|---|

Account Balance | Bonus Interest Rate | Annual Interest (S$) |

First S$10,000 | 1.50% | S$150 |

Next S$20,000 | 2.00% | S$400 |

Next S$20,000 | 3.33% | S$666 |

Grand Total | S$1,216 |

The Interest (S$1,216) shown above is how much you will earn on your UOB One Account assuming you have S$50,000 in your account and satisfy the following two criteria. Also do note that this brings about an approximate annual interest rate of just 2.43% p.a.:

- Credit Salary (minimum S$2,000 per month)
- Spend at least S$500 a month on UOB One Card and/or UOB Direct Visa Debit Card

The calculation above excludes any bonus interest paid on interest accrued each month. Honestly, if you are even considering this option, **the only card you should rely on is the UOB One Card**. If you factor in how much rebates you earn from the UOB One Card by spending say S$500 a month (S$6,000 a year) - you can bring the total gain from S$1,216 to S$1,416 (since you earn S$200 with the UOB One Card) - this brings the effective annual rate of interest to 2.83% p.a. (still under the 3.33% p.a. that people are generally used to seeing).

**Comparing the OCBC 360 and UOB One Account - Which is Better?**

As I have mentioned earlier, there really isn't a clear winner between these two accounts. At the end of the day, it all boils down to what your spending habits are and what you would like to maximise. If I had to provide a recommendation however, here it is! **If you love cash backs and are already a UOB One Card user, you should definitely go with the UOB One Account!** However, if like me, you enjoy earning miles (and truly some of the best mile-accrual cards are on UOB), then you should opt for the OCBC 360 Account and take advantage of the slightly lesser interest rate.

To make them a little more comparable, let's assume that we only have S$50,000 in our accounts for the sake of comparison.

Comparison of OCBC 360 and UOB One Accounts (Assumption: S$50,000 Account Balance) |
||
---|---|---|

Key Highlights | OCBC 360 | UOB One Account |

Maximum Interest Rate | 3.25% | 2.83% |

Maximum Interest (S$) | S$1,625 | S$1,416 (includes S$200 cashback) |

Scenarios | ||

Scenario 1 Salary + Pay 3 Bills ONLY |
S$875 | S$25 |

Scenario 2 Salary + Spend S$500 a Month ONLY |
S$875 | S$1,416 (includes S$200 cashback) |

The calculation above excludes any bonus interest paid on interest accrued each month. I personally associate myself to "Scenario 1" since** I think that S$500 a month spend can be better channeled to a different credit card - S$6,000 spend could potentially be worth 24,000 miles** and I'd value that over incremental interest any day! However, if you are more of a "Scenario 2" person, then you can definitely see how the UOB One Account has an advantage over the OCBC 360.

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