UOB One Account nerfing interest rates to 3.3% p.a. from May 2025

The UOB One Account is often considered the best bank account for miles chasers. Unlike other “hurdle accounts” which require customers to spend on cashback cards, purchase overpriced investment or insurance products, or take out a mortgage, the UOB One Account is refreshingly straightforward.

Customers can earn up to 4% p.a. on balances of up to S$150,000 by simply meeting two requirements:

• Crediting a monthly salary of at least S$1,600
• Spending at least S$500 per month on selected UOB cards

The list of eligible cards includes two popular miles-earning options— the UOB Lady’s Card and UOB Lady’s Solitaire Card— and the S$500 spending requirement easily fits within their monthly bonus cap.

Unfortunately, changes are coming to the UOB One Account effective 1 May 2025, which will see the maximum interest rate cut to 3.3% p.a. on the first S$150,000. This is the second consecutive year we’re seeing an interest rate nerf, with UOB offering 5% p.a. on up to S$100,000 as recently as April 2024.

If it’s any consolation, UOB has also launched a promotion that offers a 6% rebate on income tax payments made via GIRO, which cushions the impact somewhat.

UOB One Account cutting interest from May 2025

Current interest rates

The UOB One Account currently offers customers up to 4% p.a. on a maximum balance of S$150,000.

Revised interest rates

From 1 May 2025, UOB will be revising the interest rates on the UOB One Account as follows.

If you’re a customer meeting the card spend and salary credit requirements, the maximum effective interest you can earn on the first S$150,000 will decrease from 4% p.a. to 3.3% p.a..

If you’re a customer meeting the card spend and GIRO requirements, the maximum effective interest you can earn on the first S$125,000 will decrease from 2.4% p.a. to 1.9% p.a..

What’s not changing?

The good news, if you want to call it that, is that UOB is keeping the One Account simple by not changing any of the activities required to unlock bonus interest:

• Min. card spend of S$500 per calendar month, and
• At least 3 GIRO debit transactions or credit salary of at least S$1,600 per month

The list of eligible UOB cards remains the same.

No prizes for guessing that most miles chasers will meet the minimum spend with either the UOB Lady’s Card or UOB Lady’s Solitaire Card, as the S$500 requirement is well within the monthly bonus cap of S$1,000 (Lady’s Card) or S$2,000 (Lady’s Solitaire Card).

6% rebate for tax payments

To soften the blow of the nerf, UOB has launched a new promotion that offers a 6% rebate on GIRO income tax payments made between 1 April 2025 and 31 March 2026.

The rebate cap depends on the monthly average balance (MAB) in your UOB One Account.

To earn this rebate, customers will need to complete the following three steps:

1. Register your mobile number for PayNow on UOB TMRW
2. Activate Money Lock on UOB TMRW (minimum S$1 lock amount)
3. Apply for GIRO Monthly Tax Payment Plan through IRAS portal, selecting UOB One Account for deduction

No further actions are required if you’ve already performed the above three activities prior to 1 April 2025. 

To illustrate, a customer who has a MAB of S$150,000 and completes the steps above will receive a 6% rebate (capped at S$50) on each month’s GIRO deduction. This is equivalent to an S$833 monthly tax bill.

Assuming you max out this promotion, the extra cash works out to an incremental 0.4% p.a. in interest. This, of course, assumes that you keep at least S$150,000 in your UOB One Account and have a personal income tax bill of at least ~S$10,000. 

Alternatives for miles chasers

If you’re pursuing a miles collection strategy and don’t want to take up a mortgage or buy insurance or investment products, here’s a quick rundown of the alternatives on the market: 

Account	Max. Interest*	Cap
Maybank SaveUp	1.17% p.a.	S$75K
DBS Multiplier	1.8-2.2% p.a.	S$50K
BOC SmartSaver	4.6% p.a.	S$100K
OCBC 360	4.65% p.a. Till 30 Apr 25 3.3% p.a. From 1 May 25	S$100K
UOB One	4% p.a. Till 30 Apr 25 3.3% p.a. From 1 May 25	S$150K
*Assumptions: Max out salary credit and bill payment bonuses, where applicable, and spending only on miles-earning cards.

With the OCBC 360 Account also announcing an upcoming interest rate nerf, Bank of China is looking more and more attractive by the day. However, I’m personally skeptical as to how long SmartSaver can maintain its current rates, and having said goodbye to BOC a while back, I’m not particularly relishing a return to their antiquated systems and having to visit a branch to perform the most basic of transactions.

So it looks like I’m pretty much stuck with the UOB One Account, and will try to limit the damage by taking advantage of the income tax payment promotion. 

Conclusion

From 1 May 2025, the UOB One Account will cut its interest rates from 4% p.a. to 3.3% p.a. on a maximum account balance of S$150,000.

This is bad news for miles chasers, as the UOB Lady’s Card + UOB One Account combo was a great way of getting the best of both miles and interest. For what it’s worth, it does make the UOB Lady’s Savings Account even more attractive, insofar as it reduces the opportunity cost of funds.

Miles chasers: any change to your banking strategy?

(HT: Ryan)