Joanne Chen

By Referral Only
Million Dollar Round Table

Million Dollar Agency

Quality Club

Quality Club Elite

Premier Agency Award Bronze

Money is hard to earn and even harder to keep.

Lets compare 3 of the highest interest rate bank accounts in the market today.

October 2016 Issue

Agency of the Year Top 3

Star Club

Star Club Premier

Singapore Management Awards Gold

One Account
First $10k

Next $20k

per
year

2%

1.5
Interest
% earned:

Spend $500 on UOB One

Card and/or UOB Direct
Visa Debit Card

$10k x 1.5% =$150

Effective Interest Rate
(EIR): 1.5%

Credit Salary (min. $2k) or

Pay 3 Bills Monthly via
GIRO

Next $20k

per

per
year

3.33% year

Interest earned:
Next $20k = $20k x 2% =
$400
Total interest earned:
$150 + $400 = $550

Interest earned:
Next $20k =
$20k x 3.33% =$666
Total interest earned:
$150 + $400 + $666
= $1,216

EIR: 1.83%
EIR: 2.43%

Higher interest only applies for first $50k account balance

The only account that allows spending via debit card
Maximum Effective Interest rate is 2.43% if you fulfil both spending criteria and not the advertised 3.33%

360 Account
per
per
per
per
1%
0.5%
1%
year
year
year
year
Insure (min. $8k annual Increment of your
Credit min. $2k
Pay min. 3 bills
At least $500 spend premium) or invest (min account balance from
Salary through
online or through
on OCBC Credit
$40k in funds) for 12
the previous months
GIRO
GIRO
Card
balance
months
In addition to the higher interest, you get 0.05% base interest
Higher interest only applies for first $60k
Bonus interest of 1% for incremental balance is only applied to the increased amount in the balance
So, if you have $60k, and fulfil the easier first 3 tier for the bonus interest, your interest rate will be 2.25%
p.a. Interest earned per year = $60k x 2.25% = $1,350
per

0.5%

1.2%year

Multiplier Program
OR
You have salary credited to
your DBS/POSB account

<$7.5k cashflow
per

0.05% year

OR
You shop with your
DBS/POSB Credit Card(s)

$7.5k to <$10k

$10k to <$12.5k

1.08% per

1.28% per

year

year

OR
You have a home loan
with DBS/POSB

$12.5k to <$15k
per
year

1.48%

Your investment dividends go to

your DBS/POSB account

$15k to <$20k

>$20k cashflow

1.68%per

2.08% year

year

per

Higher interest only applies to first $50k

To get the highest interest, it will mean you need a high cash in/out-flow from your DBS/POSB account
So, if you have $50k, interest earned based on the highest tier of cashflow will be: $50k x 2.08% = $1,040.

$400,000

$350,000

Total amount o money

Account Balance &

Interest Rate

$300,000
$250,000

$500/mth savings for 10 years

$358,707
At age 55, amount accumulated
in Endowment: $160,196
(Of which, $60k is individuals
monthly savings)

At age 55,
amount
accumulated in
Bank Savings Account:
$95,583 (Of which, $60k is
individuals monthly savings)

$242,832

$160,196

$200,000
$150,000

$108,212

$100,000

$122,091

$50,000

$69,101

$95,583 $108,833

$82,338

$6,135

$6,135
$25

35

45

55

65

75

AGE
Bank Savings Account (@2.25% p.a. for 1st 60k, @0.05% p.a. after $60k cap)
Endowment @ 3.93%
There are many savings accounts out there that advertise high interest rates. At first glance, it may look
attractive, but it is important to remember 2 things:
1. Maximum allowable amount.
2. Which tier interest rate you qualify for.
(Up to x.xx% doesnt mean you will automatically earn that amount)
Many of us cant really find the best balance between parking money for immediate use and setting
aside money for future consumption. Both needs must be catered for because unexpected events do
happen along the way, yet we will also all eventually retire one day. The key is finding that delicate
balance. Set aside too much for now and we will have to work harder than our money. Keep too much
for future use and we may not have enough for now. Many people think that keeping money for future
use and not having enough money to use now is worse, but is it really? Thats a story for another day.