Bank champions national saving habit with higher bonus interest for the UOB One Account
Singapore, 18 July 2018 – According to United Overseas Bank (UOB), Millennials1 are leading the way among all generations in gaining the most value out of their savings and from their spending. The finding was drawn from the Bank’s analysis of the transaction patterns of its flagship UOB One Account holders across generations.
In the three years since the launch of the UOB One Account, UOB has found that Millennials, who make up 54 per cent of all holders of the UOB One Account, have shown the highest growth in savings balances. From mid-2015 to mid-2018, the average account balance for Millennials grew 31 per cent per annum to $27,000. This saving trend is supported by research conducted by Visa which showed that compared with other generations, Millennials are more focused on saving and investing2.
While Millennials account for the lion’s share of all holders of the UOB One Account, they also have the fastest growing account balances. Generation X3 are also using the account to increase their savings with their average account balance up 11 per cent per annum to $34,000 over the past three years. Baby Boomers’4 saving balances have stayed relatively flat at $32,000 over the same period.
Ms Jacquelyn Tan, Head of Personal Financial Services Singapore, UOB, said, “When we designed the UOB One Account, we wanted to create a product that was easy to understand, simple to use and could help all customers maximise their savings over time. To date, the Bank has rewarded UOB One Account holders with more than $70 million in interest. Looking at the results over the last three years, UOB has helped in championing a nation of savers with more than a quarter of a million accounts opened. We aim to continue our double-digit account opening growth for the UOB One Account over the next three years.”
“For Millennials more specifically, we wanted the UOB One Account to give them a head start in wealth creation. We see that contrary to conventional wisdom, Millennials are not focused solely on living in the moment. They are actually very conscious of the need to save for the future. We can see from the results that they use the UOB One Account as a foundational part of their savings and investment plan.”
Rewarding the everyday spend
The UOB One Account rewards account holders with bonus interest rates for salary crediting and GIRO payments. To earn more rewards, the account can also be paired with a UOB One credit card which offers the most generous cashback rebate of up to five per cent with a $500 minimum spend on the card. Half of UOB One Account holders also hold a UOB One credit card.
UOB’s analysis also shows that for UOB One Account value seekers, cash rebates remain king. Over the last three years, account holders have earned more than $30 million in cash rebates. Spending at restaurants and retail outlets and paying for essentials such as groceries, medical expenses and insurance have been the most frequent way for rebates to be achieved.
The simplicity of the bundle – a single account and card to access bonus saving and rebate rewards – was instrumental in the UOB One Account winning Deposit Product of the Year by The Asian Banker’s Excellence in Retail Financial Services awards.
As the UOB One Account celebrates its third anniversary, UOB has enhanced the account to reward value seekers who spend on the UOB One credit card and who continue to increase their account balance in their UOB One Account. From 1 August 2018, UOB One Account holders will enjoy a higher bonus interest of 1.50 per cent on the first $15,000 when they also spend a minimum of $500 on their UOB One credit card. Account holders currently earn one per cent bonus interest on the first $10,000.
In line with encouraging Singaporeans to save more, UOB will increase the balance amount for which UOB One Account holders can earn the maximum bonus interest.
This will be raised from $50,000 to $60,000, capped at $75,000. The Bank has also raised the top bonus interest that can be earned from
3.33 per cent to 3.88 per cent5. A customer with $75,000 in their UOB One Account can earn about $600 more in bonus interest per annum with the refreshed UOB One account and card bundle.
“With the latest enhancements, we are giving consumers more reasons to save and to transact using a single account,” Ms Tan said.
UOB is running a ‘Nation of Savers’ campaign from now to 31 August 2018. As part of the promotion, customers will receive $100 in their new UOB One Account when they apply for it online.6 Accounts can be opened instantly at www.uob.com.sg/oneaccount through MyInfo. Once open, customers will be able to transact8 immediately.