OCBC Cuts Rates for OCBC 360 (Again), Promises to Adjust if Interest Rate Situation Improves… But Seth Says No Thanks

OCBC cuts rates for once popular savings account OCBC 360 yet again. This follows drops effected on May 2020, July 2020, and October 2020 (which I had given up writing about 🙃). The changes take place on 1st February 2021.

Before

After

Alternatives

If you have been reading my site, you would know that I have been enthusiastic about insurance savings accounts. If you haven’t, you can check out a comparison here.

In the near future, I will also be exploring more products to get returns on my savings. Subscribe to my Telegram if you are keen on such topics.

Thoughts

OCBC assures its customers that their product offerings will be adjusted accordingly if the interest rate situation improves:

We wish to inform you that, on 1 February 2021, we will be revising the interest rates for the OCBC 360 Account. If and when the interest rate situation improves, you may be assured that we will adjust our product offerings accordingly.

Personally, I think the time has come and gone for bank accounts like these that make you jump through hoops to get higher rates on your deposits. It’s a chore to qualify for some of the categories, and it sometimes requires a significant financial obligation in form of an investment or insurance policy, and after you thought you’ve finally met their inane requirements, the rates change. Ugh.

This isn’t unique to OCBC, of course, since other banks have similar products and have done such cuts over the past year or so. This is why I shifted all my bank deposits into alternatives some time last year and could not be happier. No more card spend or to meet each month!

Such cuts are also a good reminder that my asset allocation skews too heavily towards cash and its equivalents. I don’t like to set new year resolutions, but I think 2021 is a good time for me to research and review more products and ways to get higher yields, and I hope to share it with you all.

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4 thoughts on “OCBC Cuts Rates for OCBC 360 (Again), Promises to Adjust if Interest Rate Situation Improves… But Seth Says No Thanks

  1. I’ve never used any of these conditional high-yield savings accounts. Why be a circus animal & keep on jumping through hoops??!? Sometimes the hoops are even lighted with fire i.e. minimum card spending, high-fees investment or insurance products, etc.

    Since 1995, I’ve stuck with money market funds & after 25 years I’m still happy with them. The irony is that OCBC’s fund mgmt subsidiary has a couple of the better money market funds in the Singapore market. While the yields were lower than the highest of high-yield savings accounts during the peak in 2017/2018, I’ve yet to feel like a circus animal LOL.

    PS: Don’t mix up short-term bond funds with MMFs. The former usually has higher performance but will have short-term downturns once in a while — one of them is famous for being used for CPF-SA and CPF-OA Shielding technique. Locally-registered MMFs have to follow a set of MAS definitions to be considered & marketed as an MMF.

    1. Thanks for your input. I think the savings accounts were worthy when they were first introduced given their rates back then and also the fact that it’s convenient for GIRO and FAST. Now… I share your disdain for them

  2. My asset allocation is also heavy towards cash and its equivalents. What’s your plan? Re-allocate to equities?

    1. Yes the general plan is to increase my investments. After getting past the downpayment of my apartment I don’t need to see the need to hoard cash that much any more.

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