Are the days of high interest rates for savings accounts coming to an end?

SINGAPORE: Cash savers beget been getting magnificent returns in most up-to-date years, with banks dangling hobby rates of over 7 per cent for financial savings accounts.

However with the most up-to-date payment cuts, one can’t back but put a quiz to: Are the fitting cases coming to an discontinue?

Earlier this month, UOB took the most fundamental step among local banks to allege cuts to its flagship One yarn’s hobby rates. From Could maybe also 1, rates for the most fundamental S$100,000 (US$73,500) shall be 3 to 4.5 per cent a year, down sharply from the most up-to-date 3.85 to 7.8 per cent.

Long-established Chartered Bank is also making a downward revision, albeit a smaller one. The most hobby payment on its Bonus$aver yarn shall be lowered slightly from 7.88 per cent to 7.68 per cent each year from Could maybe also.

For now, diversified banks beget now not announced any changes to their flagship financial savings accounts.

WHAT CAN SAVERS DO?

Correct adore how the flurry of hobby payment hikes in late 2022 spurred some americans to vary their bank accounts making an strive to salvage the finest deal, some are mulling if it’s time to produce the change, all over again.

As a major step, it is severe to point to that flagship financial savings accounts provide tiered hobby rates that trot up as potentialities grow their yarn steadiness, spend more on eligible playing cards and habits diversified transactions with the bank a lot like taking over a mortgage or insurance protection scheme.

This means that the very best seemingly marketed rates normally practice to finest a half of one’s financial savings, and if certain stipulations are fulfilled.

Take UOB as an instance – the revised 4.5 per cent payment applies particularly to deposits between S$75,000 and S$100,000, and when yarn holders credit their salary to the bank and spend no less than S$500 a month on an eligible bank card.

Moderate that out with the 3 per cent hobby paid out to diversified tiers of funds, the effective hobby payment for deposits of S$100,000 is about 3.4 per cent each year.