OCBC 360 Account to Reduce Effective Interest Rate (Again) on 01 February 2021

The OCBC 360 Account has gone through multiple changes over the years but we have seen at least three changes in 2020 alone. Starting from 01 February 2021, OCBC 360 account holders will once again be affected by a reduction in effective interest rate (EIR). While these changes are quite minute, they do bring down the EIR from a potential 2.68% p.a. to 2.38% p.a.. For those of you who do not insure or invest with OCBC, the EIR on your account will fall from a maximum of 1.08% p.a. to just 0.98% p.a. so you should definitely take note of these upcoming changes.

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Photo Credit: OCBC Bank

As a quick recap, account holders can earn bonus interest on the first S$75,000 in their OCBC 360 account so long they meet certain requirements across multiple categories - bonus interest rates, however, are staggered across three tiers which are based on the average monthly balance on the OCBC 360 Account.

Upcoming Changes to OCBC 360 Account
Salary, Insure & Invest	Current	New (from 1 Feb 2021)
First S$25,000	0.4%	0.3%
Next S$25,000	0.8%	0.6%
Next S$25,000	1.2%	1.2%

The bonus interest rates on the Salary, Insure, and Invest categories on the OCBC 360 account will drop by 0.1% p.a. in the first two tiers. If you have the full S$75,000 in your account, the EIR will be decreased by the full 0.1% p.a. in each one of the aforementioned categories: 

• Spend - from 0.8% p.a. to 0.7% p.a.

• Insure - from 0.8% p.a. to 0.7% p.a.

• Invest - from 0.8% p.a. to 0.7% p.a.

Now if you are like me who do not insure or invest with OCBC Bank, the EIR on your OCBC 360 Account will fall from 1.08% p.a. to just 0.98% p.a. and at this point, I would personally just recommend going for a different investment instrument altogether. I will be touching on a few wealth management platforms and robots adviser services in the weeks ahead but let's just say 2021 is the best year to be smarter with your money.