OCBC 360 raises maximum interest to 4.05% p.a., reinstates card spending bonus

Back in July 2020, OCBC cut interest rates on the OCBC 360 Account and removed the bonus for credit card spending. The bank would proceed to make a series of further rate cuts in October 2020 and February 2021.

But with global interest rates on the rise again, OCBC has announced an enhancement to the 360 Account that takes effect from 1 September 2022. The maximum effective interest rate will be increased to 4.05% p.a. (from 2.38% p.a.), and the maximum eligible account balance increased to S$100,000 (from S$75,000). 

OCBC is also bringing back the Spend category that awards bonus interest for credit card spending. Before you rejoice, however, take note this only applies to the cashback-earning OCBC 365 card. Spending on the OCBC 90°N Card, OCBC VOYAGE or OCBC Titanium Rewards will not count.

OCBC 360 Account revised rates

Here is the current OCBC 360 interest rate structure, which applies till 31 August 2022. 

Under the current structure, account holders can earn a maximum EIR of 2.38% p.a. on the first S$75,000 in the account. 

From 1 September 2022, the interest rate structure changes as follows:

With the revised structure, account holders can earn a maximum EIR of 4.05% p.a. on the first S$100,000 in the account.

Salary: Up to 1.1% p.a.

Customers who credit a monthly salary of at least S$1,800 to the 360 Account will earn 1.1% p.a., up from 0.7% p.a. previously.

As before, your salary must be credited through GIRO with the description GIRO- SALARY in order to qualify for this bonus. 

Save: Up to 0.35% p.a.

Customers who increase their average daily balance (ADB) by at least S$500 monthly will earn 0.35% p.a., up from 0.23% p.a. previously. 

Spend: Up to 0.35% p.a.

The Spend bonus, previously removed in July 2020, will be restored from 1 September 2022 onwards. 

Customers who spend at least S$500 on their OCBC 365 Credit Card each month will earn 0.35% p.a.. Unfortunately, OCBC is not including other credit cards at this moment.

For what it’s worth, OCBC 365 cardholders will enjoy 8% cashback on groceries when they spend at least S$80 in a single transaction on Thursdays in September 2022. This requires a minimum spend of S$800 (in total retail transactions) and is capped at S$80. 

I’ll stick to the HSBC Revolution, thank you very much. 

Wealth (Insure): Up to 1.1% p.a.

Customers who purchase an eligible insurance product from OCBC will earn 1.1% p.a., up from 0.7% p.a. previously. 

Do note that bonus interest is accorded for 12 months after the effective date of purchase, post the free look cancellation period or 14 days, whichever is longer. 

Wealth (Invest): Up to 1.1% p.a.

Customers who purchase an eligible investment product from OCBC will earn 1.1% p.a., up from 0.7% p.a. previously. 

Do note that bonus interest is accorded for 12 months after the effective date of purchase, post the free look cancellation period or 14 days, whichever is longer. 

Unfortunately, OCBC RoboInvest is not considered an eligible investment product. 

How much more interest will you earn?

Under the current OCBC 360 interest structure, an accountholder with a balance of S$75,000 could earn up to S$1,787.50 interest per year. Following the changes, the maximum interest on an account balance of S$100,000 will increase to S$4,050 per year. 

Realistically speaking, however, you’re not going to hit every bonus category. In a more plausible scenario of someone maxing out the Salary and Save categories, annual interest goes from S$700 to S$1,450. Tacking on credit card spend would add a further S$350 each year.

Which bank accounts reward miles card spending?

If you’re looking for a bank account that lets you earn bonus interest from spending on miles cards, the options aren’t great.

CIMB and SC Bonus$aver don’t recognise spending from miles cards. Of the remainder:

• The BOC Elite Miles Card has been nuked into oblivion
• The DBS Multiplier’s earn rates for Salary + Card spend aren’t great (max 1.1% p.a.) unless you’re willing to add a further category of insurance, investment or home loan
• Maybank Save Up recognises spend on the Maybank Horizon Visa Signature, but just like the DBS Multiplier, the earn rate is low (max 0.95% p.a.) unless you’re willing to insure, invest or borrow from the bank
• UOB One lets you use the excellent UOB Lady’s Cards, but the problem is it’s gender-restricted 

Gone are the days where I’d milk the BOC SmartSaver for 3.15%…

Conclusion

The OCBC 360 Account has hiked its interest rates to up to 4.05% p.a. and restored credit card spending as a bonus category. Unfortunately, the appeal of the latter is limited to cashback users for now, as spending will only be recognised on the OCBC 365.

Ultimately, most hurdle bank accounts don’t offer great interest unless you’re willing to buy their insurance or investment products. I personally put most of my short-term funds into a cash management account like Stashaway Simple, and save myself the hoop jumping.