OCBC makes third round of rate revisions on 360 account

OCBC will make revisions to its flagship savings account from Oct 1, raising the minimum amount to earn the maximum interest rate.

This comes as the lender has introduced a middle tier on its 360 account amid the prolonged low interest rate environment. It marks the third time since May that OCBC has made changes to the account.

From Oct 1, balances up to S$25,000 will earn 0.4 per cent in salary credit bonus interest. Balances between S$25,000 and S$50,000 will earn 0.8 per cent interest, while balances between S$50,000 and S$75,000 will earn 1.2 per cent interest.

Currently, for balances up to S$35,000, the interest stands at 0.6 per cent. Balances between S$35,000 and $70,000 earn 1.2 per cent interest.

This means that to lock in the highest rate of 1.2 per cent from Oct 1, account holders must put more than S$50,000, instead of more than S$35,000 previously.

That said, the overall monthly average balance cap for bonus interest has increased from S$70,000 to S$75,000.

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The bank will also from Oct 1 boost its wealth bonus offerings on the 360 account, with two new categories to earn bonus interest on investments and insurance separately.

"Interest rates have continued to trend lower since the Federal Reserve cut US interest rates almost to zero in March to mitigate the economic impact of the Covid-19 pandemic," said OCBC in a statement on its website.

"As a result, we have to make changes to the 360 account. If and when the interest rate situation improves, you may be assured that we will adjust our product offerings accordingly."

In July, the lender halved the salary credit bonus interest for the respective tiers on the 360 account. This follows from an earlier set of rate revisions that took effect on May 2.

Other financial institutions have also lowered their deposit rates on the back of a grim interest rate environment.

On Tuesday, robo-adviser StashAway reduced the projected interest rate for its cash management portfolio, StashAway Simple, from 1.9 per cent to 1.4 per cent.

Meanwhile, DBS cut rates on its flagship deposit account from Aug 1, after earlier revising rates from May. Standard Chartered halved interest payouts on its popular Jumpstart savings account from July 1.