Nerfed: UOB One Dropping Interest Rates (Again) From 1st September 2025, Max Effective Interest at 2.50% p.a.
No you’re not having a second deja vu — UOB One is the second local bank this year to have a second nerf to their flagship bank account. This follows OCBC who announced their second rate drop to OCBC 360 just a month ago. It’s almost as if these 2 banks are playing for second place.
Excluding earmark promos, the maximum interest rate achievable by UOB One Account when the new rates take place would be 2.50% p.a. on S$150,000 average monthly balance.
Interest Tiers
The rates have been cut by 0.8% p.a. across the different tiers:
| Balance | Interest Rate Before 1st September 2025 (p.a.) | Interest Rate From 1st September 2025 (p.a.) |
|---|---|---|
| First S$75,000 | 2.30% | 1.50% |
| Next S$50,000 | 3.80% | 3.00% |
| Next S$25,000 | 5.30% | 4.50% |
| Above S$150,000 | 0.05% | 0.05% |
Effective Interest
As a result, the effective interest rates have also fallen by 0.80% percent p.a. for balances up to S$150,000. The maximum effective interest rate would max out at 2.50% p.a.
| Monthly Average Balance | Effective Interest Rate Before 1st September 2025 (p.a.) | Effective Interest Rate From 1st September 2025 (p.a.) | Change |
|---|---|---|---|
| S$25,000 | 2.30% | 1.50% | 🔻0.80% p.a. |
| S$50,000 | 2.30% | 1.50% | 🔻0.80% p.a. |
| S$75,000 | 2.30% | 1.50% | 🔻0.80% p.a. |
| S$100,000 | 2.68% | 1.88% | 🔻0.80% p.a. |
| S$125,000 | 2.90% | 2.10% | 🔻0.80% p.a. |
| S$150,000 | 3.30% | 2.50% | 🔻0.80% p.a. |
These are some mediocre rates, with quite a few tiers significantly below 2% p.a. Moreover, these rates are provided one can meet both card spend of S$500 and salary crediting of at least S$1,600 (of which there is a longstanding workaround).
It’s pretty terrible, even if we recognise that we are in a declining interest rate environment.
Monthly Interest Amount
The impact is perhaps best witnessed in the drop of interest amount accountholders would receive each month. At the highest tier, there is a loss of approximately S$100 in monthly interest. Across the tiers, it’s a fall of around 25% to 35% in interest received.
| Monthly Average Balance | Approx. Monthly Interest | New Approx. Monthly Interest | Change |
|---|---|---|---|
| S$25,000 | S$47.92 | S$31.25 | -S$16.67 🔻 34.8% |
| S$50,000 | S$95.83 | S$62.50 | -S$33.33 🔻 34.8% |
| S$75,000 | S$143.75 | S$93.75 | -S$50 🔻 34.8% |
| S$100,000 | S$222.92 | S$156.25 | -S$66.67 🔻 30.0% |
| S$125,000 | S$302.08 | S$218.75 | -S$83.33 🔻 27.6% |
| S$150,000 | S$412.50 | S$312.50 | S$100 🔻24.2% |
UOB has other promos to prop up the interest rate
It is worth noting that UOB has 2 ongoing promos that could potentially make UOB One Account still viable for some.
The latest quarterly earmark promo isn’t fantastic, but can represent approximately 0.34% to 0.36% p.a. of bonus interest. Earmark promos require funds to be committed like a fixed deposit of sorts for months, and the latest promo requires around 7 months which is the longest we’ve seen for such a promo. This frankly isn’t very attractive given the low returns, and as I had mentioned in my article there is a chance of further drops in your UOB account’s interest rates while your funds are still being locked up.
Another promo is the tax saver promo UOB launched last month. 6% (or 6.5% if you qualify) rebate of tax sounds amazing, but if you were to count the rebate as an effective return on your funds placed in UOB One, the yield is 0.4% p.a. at best. This 0.4% p.a. figure is also provided you can maximise the rebate amount which requires around S$833.33 of tax payment per month.
I imagine there are people who would try to utilise both promos efficiently to get additional 0.76% p.a., getting 3.26% p.a. from UOB One come September, but it is likely I’m giving this account a pass.
Alternatives?
Since the change takes effect in September, UOB One accountholders still have a month to ponder their options. Given the trend and frequency of interest rate drops of late, it wouldn’t be too surprising that other banks follow suit so stay subscribed for updates.
At present moment, I think the best and perhaps last decent high yield savings account would be StanChart Bonus$aver which bucked the trend of rate cutting and bumped up their rates 2 months ago. I’m fully expecting StanChart to announce a rate cut soon, and I was even expecting them to announce it today. Until that happens though, the account can still give very good interest and I will have a guide on it very soon.
For lower bank balances, UOB One’s new rates have become so low that even fuss-free accounts might make more sense. Even after its recent nerf takes effect on 6th August 2025, GXS Savings Pocket’s 1.38% p.a. at least does not require any salary crediting or card spend compared to UOB One’s 1.5% p.a. for balances S$75,000 and below.
Even OCBC 360’s latest nerf looks better than UOB One in comparison, offering higher interest rates up for up to S$100,000. DBS Multiplier, by virtue of not being “revised” for so long, is also a contender provided you can fulfil its various conditions.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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