UOB trims One Account interest rate again to maximum 2.5% per annum on first S$150,000
It had already lowered rates on its flagship deposit account in April to 3.3% from 4%
[SINGAPORE] UOB is cutting interest rates on its flagship savings account, the One Account, for the second time in 2025.
This is to “align with (the) longer-term interest rate outlook”, it said in a statement on Friday (Aug 1).
From Sep 1, the maximum effective interest rate on the One Account will decrease to 2.5 per cent per annum on the first S$150,000, down from 3.3 per cent.
The 3.3 per cent rate, effective from May 1, was announced in April. It was a reduction from the 4 per cent rate previously.
UOB is not the only bank to lower rates on its flagship deposit account twice this year.
OCBC had, on May 1, cut the maximum effective interest rate on its 360 Account to 6.3 per cent from 7.65 per cent on the first S$100,000.
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It then announced a second cut in June. With effect from Aug 1, the maximum rate has been lowered to 5.45 per cent per annum.
UOB added that customers who spend on their UOB One Debit Card will enjoy cash rebates that have been revised up to a maximum of 4 per cent for selected spend categories.
Until Mar 31, 2026, customers will also earn a 6 per cent tax payment rebate of up to S$50 a month, when they make monthly Giro payments for their income tax from their One Account.
High liquidity makes an impact
Rates in Singapore have fallen since the start of 2025, due to high liquidity caused by increased cash flows into the Republic due to its safe-haven status.
Year to date, the one-month and three-month Singapore Overnight Rate Average (Sora) are down 127 basis points and 118 basis points, respectively.
OCBC, which posted its second-quarter results on Friday, said its net profit for the quarter fell 7 per cent on the year to S$1.82 billion, amid lower interest rates in Singapore and Hong Kong.
The fall in loan yields outpaced the drop in deposit costs.
It lowered its target net interest margin for FY2025 to a range of 1.9 to 1.95 per cent, as it expects both Sora and the Hong Kong Interbank Offered Rate (Hibor) to “stay steady” at current levels.
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