Earlier this week, UOB unveiled a new design for the UOB Ladyโs Cards, as well as โThe Unstoppable Pairingโ, a bonus UNI$ scheme for UOB Ladyโs Cardholders who opened a UOB Ladyโs Savings Account.
Now, Iโm not really a fan of the new-look card. If you ask me, the current ones are much nicer. But then again, Iโm not exactly a doyenne of style โ a date once told me โI think itโs so cool you donโt care about fashion trendsโ โ so make of that assessment what you will.
Current design | New design |
UOB Ladyโs Card | UOB Ladyโs Card |
UOB Ladyโs Solitaire Card | UOB Ladyโs Solitaire Card |
UOB Ladyโs Solitaire Metal Card | UOB Ladyโs Solitaire Metal Card |
As for The Unstoppable Pairing (am I the only one who cracks up every time I say it aloud?), I wrote that I didnโt really see the point given how miserly the interest rates on the UOB Ladyโs Savings Account were (just 0.05% p.a.), but then someone asked:
What if I just deposit the bare minimum of S$10,000 and use it to keep earning 6 mpd on the UOB Ladyโs Cards after 1 April?
That got me thinking: maybe Iโm being too hasty in dismissing the idea altogether. So I decided to run some scenarios, and you know what? There might actually be something to this.
Recap: Bonus UNI$ with the UOB Ladyโs Savings Account
โ Key Facts: UOB Ladyโs Savings Account |
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From 1 April 2024, UOB Ladyโs Cardholders will be able to earn bonus miles with the UOB Ladyโs Savings Account as summarised in the table below.
Monthly Average Balance | UNI$ from Ladyโs Savings Account | UNI$ from Ladyโs or Ladyโs Solitaire Card | Total |
<S$10K | N/A | 10X UNI$ (4 mpd) |
10X UNI$ (4 mpd) |
S$10,000 to S$49,999 | 5X UNI$ (2 mpd) |
15X UNI$ (6 mpd) |
|
S$50,000 to S$99,999 | 10X UNI$ (4 mpd) |
20X UNI$ (8 mpd) |
|
S$100K and more | 15X UNI$ (6 mpd) |
25X UNI$ (10 mpd) |
The maximum bonus UNI$ you can earn from the Ladyโs Savings Account is capped at:
- UOB Ladyโs Card: S$1,000 per calendar month
- UOB Ladyโs Solitaire Card/Ladyโs Solitaire Metal Card: S$2,000 per calendar month
I find this mechanism strange for two reasons.
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First, the bonus cap has no relation to your MAB. Whether you keep S$10,000 or S$100,000 in the Ladyโs Savings Account, what determines your bonus cap is the type of Ladyโs Card you hold.
Second, even though the bonus rate is related to your MAB, it does not scale linearly. Whether I put S$10,000 or S$49,999 in the account, I still earn an extra 2 mpd on my spending. Why on earth would I put anything more than S$10,000 then?
Yes, the extra funds may qualify me for some additional cancer coverage, but the value of that is debatable- not to mention that S$10,001-S$25,000 and S$25,001-S$49,999 would be in the same coverage band, so thereโs literally no incremental benefit there.
Monthly average balance (Rolling average of the past 3 months) |
Coverage (Female cancer benefit sum assured) |
S$1 โ S$10,000 | S$1,000 |
S$10,001 โ S$25,000 | S$10,000 |
S$25,001 โ S$50,000 | S$25,000 |
S$50,001 โ S$75,000 | S$75,000 |
S$75,001 โ S$100,000 | S$100,000 |
More than S$100,000 | S$200,000 |
But strange or not, those are the rules that UOB has set for this game, so the question then becomes: should we bother playing it?
Letโs look at some different scenarios.
Scenarios
If you deposit S$10,000 in the UOB Ladyโs Savings Account, youโll earn an extra 2 mpd on spending, which means:
- UOB Ladyโs Card: An extra 24,000 miles per year
- UOB Ladyโs Solitaire Card/Ladyโs Solitaire Metal Card: An extra 48,000 miles per year
Hereโs the interest rate at which the extra miles and foregone interest on the S$10,000 are in equilibrium (letโs use simple interest to avoid confusing things).
๐ฐ Deposit: S$10,000 | ||
Value of a Mile | Yearly Interest (UOB Ladyโs Card) |
Yearly Interest (UOB Ladyโs Solitaire) |
2 cents | 4.8% | 9.6% |
1.9 cents | 4.6% | 9.1% |
1.8 cents | 4.3% | 8.6% |
1.7 cents | 4.1% | 8.2% |
1.6 cents | 3.8% | 7.7% |
1.5 cents | 3.6% | 7.2% |
1.4 cents | 3.4% | 6.7% |
1.3 cents | 3.1% | 6.2% |
1.2 cents | 2.9% | 5.8% |
1.1 cents | 2.6% | 5.3% |
1 cent | 2.4% | 4.8% |
Highlighted in yellow = my personal value of a mile |
If you can earn a return greater than the rates in this table, then the miles are the inferior choice. If you canโt earn a return greater than the interest rates in this table, then the miles are the superior choice.
For example, if youโre a UOB Ladyโs Cardholder who values a mile at 2 cents each, then the miles are the superior choice unless you can earn a return of more than 4.8% p.a. on the S$10,000.
If youโre a UOB Ladyโs Cardholder who values a mile at 1.5 cents each, then the miles are the superior choice unless you can earn a return of more than 3.6% p.a. on the S$10,000.
Of course the higher you value miles, the higher the interest needs to be, and UOB Ladyโs Solitaire Cardholders need higher interest rates because they enjoy 2x the miles cap of Ladyโs Cardholders (so to put it another way, the UOB Ladyโs Savings Account makes more sense if youโre a Solitaire Cardholder).
If you deposit S$50,000 in the UOB Ladyโs Savings Account, youโll earn an extra 4 mpd on spending, which means:
- UOB Ladyโs Card: An extra 48,000 miles per year
- UOB Ladyโs Solitaire Card/Ladyโs Solitaire Metal Card: An extra 96,000 miles per year
Hereโs the same analysis repeated:
๐ฐ Deposit: S$50,000 | ||
Value of a Mile | Yearly Interest (UOB Ladyโs Card) |
Yearly Interest (UOB Ladyโs Solitaire) |
2 cents | 1.9% | 3.8% |
1.9 cents | 1.8% | 3.6% |
1.8 cents | 1.7% | 3.5% |
1.7 cents | 1.6% | 3.3% |
1.6 cents | 1.5% | 3.1% |
1.5 cents | 1.4% | 2.9% |
1.4 cents | 1.3% | 2.7% |
1.3 cents | 1.2% | 2.5% |
1.2 cents | 1.2% | 2.3% |
1.1 cents | 1.1% | 2.1% |
1 cent | 1.0% | 1.9% |
Highlighted in yellow = my personal value of a mile |
If you deposit S$100,000 in the UOB Ladyโs Savings Account, youโll earn an extra 6 mpd on spending, which means:
- UOB Ladyโs Card: An extra 72,000 miles per year
- UOB Ladyโs Solitaire Card/Ladyโs Solitaire Metal Card: An extra 144,000 miles per year
Hereโs the same analysis repeated:
๐ฐ Deposit: S$100,000 | ||
Value of a Mile | Yearly Interest (UOB Ladyโs Card) |
Yearly Interest (UOB Ladyโs Solitaire) |
2 cents | 1.4% | 2.9% |
1.9 cents | 1.4% | 2.7% |
1.8 cents | 1.3% | 2.6% |
1.7 cents | 1.2% | 2.4% |
1.6 cents | 1.2% | 2.3% |
1.5 cents | 1.1% | 2.2% |
1.4 cents | 1.0% | 2.0% |
1.3 cents | 0.9% | 1.9% |
1.2 cents | 0.9% | 1.7% |
1.1 cents | 0.8% | 1.6% |
1 cent | 0.7% | 1.4% |
Highlighted in yellow = my personal value of a mile |
What youโll notice is that the value proposition of the Ladyโs Savings Account progressively breaks down as we go to S$50,000 and S$100,000.
For example, for a UOB Ladyโs Solitaire Cardholder with a S$50,000 deposit and a 1.5 cents per mile valuation, the extra miles arenโt worth it if I can earn more than 2.9% p.a. on my money, which is possible via something like Stashaway Simple Guaranteed, which at the time of writing is offering 3.3% p.a. for a 12-month tenure.
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The case is even worse for S$100,000, where given a 1.5 cents per mile valuation, any alternative that earns above 1.1% p.a. (Ladyโs Card) or 2.2% p.a. (Ladyโs Solitaire Card) makes the miles not worth it.
And so we circle back to S$10,000, which could be the sweet spot. Based on my personal valuation of 1.5 cents per mile, a UOB Ladyโs Solitaire Cardholder who maxes out the S$2,000 bonus cap each month should pick the UOB Ladyโs Savings Account unless they can generate more than 7.2% p.a. on their funds. Since I doubt I can do that (dogecoin?), Iโm leaning towards this option- unless someone can find a flaw in my thought process?
Caveat: You must max out your bonus each month!
The main caveat I want to add here is that all of the above calculations assume you max out your bonus cap each month, i.e. S$1,000 for the UOB Ladyโs Card, and S$2,000 for the UOB Ladyโs Solitaire Card/Ladyโs Solitaire Metal Card.
If you donโt, then the whole picture changes. Letโs go back to our S$10,000 deposit example, and suppose this time, the UOB Ladyโs Solitaire Cardholder only spends an average of S$800 on her card per month.
๐ฐ Deposit: S$10,000 | ||
Value of a Mile | Yearly Interest (UOB Ladyโs Solitaire) @ S$2K spend |
Yearly Interest (UOB Ladyโs Solitaire) @ $800 spend |
2 cents | 9.6% | 3.8% |
1.9 cents | 9.1% | 3.6% |
1.8 cents | 8.6% | 3.5% |
1.7 cents | 8.2% | 3.3% |
1.6 cents | 7.7% | 3.1% |
1.5 cents | 7.2% | 2.9% |
1.4 cents | 6.7% | 2.7% |
1.3 cents | 6.2% | 2.5% |
1.2 cents | 5.8% | 2.3% |
1.1 cents | 5.3% | 2.1% |
1 cent | 4.8% | 1.9% |
Highlighted in yellow = my personal value of a mile |
In that case, the yearly interest rate to beat drops from 7.2% to 2.9% p.a, because the cardholder is leaving miles on the table. The opportunity cost of foregone interest is incurred on the full S$10,000, but she is only earning 40% (S$800/S$2,000) of the miles she could be getting.
So if you want to proceed, be sure to max out your bonus cap every month.
Conclusion
From 1 April 2024, UOB Ladyโs Cardholders will be able to earn bonus miles via the UOB Ladyโs Savings Account.
While you could earn the most miles by depositing S$100,000, my take is that the sweet spot is a token deposit of S$10,000, for someone with the UOB Ladyโs Solitaire who is confident about maxing out the S$2,000 bonus cap each month.
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This gives an extra 2 mpd, which together with the revised 4 mpd from the Ladyโs Cards allows you to keep earning 6 mpd even after the ongoing miles buff expires on 31 March 2024.
Would you keep a UOB Ladyโs Savings Account deposit to keep earning extra miles?
Thanks for this. Insightful as usual. Sounds like an overall downgrade. My view, not worth the effort given the low cap and $5 rounding. UOB shld step up on the incentives for higher MAB.
thanks for the info. it seems a downgrade. anyway any idea if the 6 mpd promotion ending on 31 Mar, is it based on posting date or transaction date?
posting date. it may already be too late to transact.
How about for Uob lady card maxed out with $10k deposit? Worth?
as a male, what options do I have since I canโt open a ladyโs account? current user of uob solitaire (me and wife 1 each, separate)
iโm now hearing that from 1 april the uob ladyโs savings account will accept male applicants. standbyโฆ
Please do let us know! I feel that with the savings account extra earn from just keeping 10k aside, it would be better compared to citi rewards.
I hope that is trueโฆ Crossing fingersโฆ.
1 april huh
๐You thinking Aprilโs fool ah?
*Open to all genders from 1 May 2024 onwards. Check out the UOB website updated under account opening tnc
yup, so looks like the floodgates open next month!
Good catch!
According to UOB FAQs, monthly average balance is the rolling average of the past 3 month balances. If we put in $10,000 now, will our monthly average balance for April be (10000/3) = 3333.33? And May be (10000*2/3) = 6666.67
Saw this on the promotion website when mousing over the โiโ. โMonthly Average Balance refers to the summation of each day-end balance in the UOB Ladyโs Savings Account for each calendar month divided by the number of calendar days for that month.โ
So given that today is the 3rd of April, I deposited 10,715.
https://www.uob.com.sg/personal/save/savings-accounts/ladys-savings-account.page?s_cid=pfs:sg:owned:off:vanity:na:vt:na:curla:0503-evergreen:ladysacctvan:na:na&vid=na&pid=msseacasa22
there is an FAQ that addresses this too: https://www.uob.com.sg/assets/pdfs/lsa-faq.pdf
I wonder if we would get a Male cancer coverage as well or at least able to nominate 1 female of our choosing for the coverage haha
Mr. MileLion, we get some added benefits of medical claims and dental visits.. Can please add those information to this post to give us a better idea of this new launch.
Just to point out, the new design of the UOB Ladyโs Solitaire Metal Card in the article is the plastic version. The metal card has a thinner border. (Both the metal and plastic ones are almost the same but Iโm just pointing out) Hopefully this can be updated in the article
The metal card looks like this:
that is a lot nicer actually! the silver border rather ruins it for me.
I kinda like the metal better, though I can agree with you on that.
FYI: The plastic card is actually the supplementary card
Useful but painful mechanic. Another way to think about it is you are putting $10,000 in Endowus and using the interest to pay UOB a membership fee to get the bonus miles.
Itโs worth a few dollars a month to use with Lady Solitaire, but you add still another set of miles rules to follow.
You have to think about the net benefit, and itโs not pure 6 mpd because there is the cost of interest described in this article.
will endowus be able to consistently generate revenue enough to pay for the membership fees?
Should i get the ladyโs cc first or open the lady savings account first? If i opened the savings account this month โ must i also spend this month in order to get the added bonus?
Now that the bonus miles is 15X UNI$ for the UOB One Ladyโs Saving Account, i think it makes more sense to maintain the 10K.
Ladyโs Savings Account | UOB Singapore
Deposited 10k into savings acc since May but never gotten the additional bonusโฆ UOB took 3-4months to โinvestigateโ and informed me today that this promo is not applicable to private banking customersโฆ..
I believe the sweet spot is 10,001. Weโre leaving 9,000 worth of cancer coverage for $1 difference!
you might want to read this: https://milelion.com/2024/08/18/uob-ladys-savings-account-ending-female-cancer-coverage/
Is the 6mpd still available for $10k deposit then, or is it over already
If I have both ladyโs and solitaireโs card with 10k deposit, do I get to earn 6 mpd for both credit cards?