UOB Savings Promo Q2 2024: Earmark Funds For S$80 to S$1,000 Cash (up to 6% p.a. Yield)

For the second quarter of 2024, UOB has a new earmark promo that is dubbed “UOB Big Savings Payout Promotion”. For committing funds for a period of time, the bank is offering cash bonuses of S$80 to S$1,000.

As with previous earmark promos, funds will be earmarked (i.e. locked up from use or withdrawals) for about 4 months, and in return you get cash rewards. When the earmark happens, you get the cash bonus and find the earmarked funds removed from your available balance. These funds still generate your account’s usual interest, but will not be available for use or withdrawals until the earmark period is over.

Unlike previous promos, however, there are some changes to the promo mechanic. Also, it is the first promo coinciding with the recent UOB One interest drop, so this quarter’s promo needs some analysis.

Promo tiers

Top-up AmountCash BonusEffective Interest*
S$20,000S$801.20% p.a.
S$50,000S$2501.51% p.a.
S$100,000S$5501.66% p.a.
S$150,000S$1,0002.01% p.a.
*effective interest is calculated based on the amount of cash bonus for a holding period of 4 months

There are 4 tiers this month, and the more you deposit, the more cash bonus you have. Effective interest also more attractive at the higher deposits.

Again, earmarked funds still earn the account’s interest, so these cash bonuses are extra interest on top of the usual returns.

The top-up amounts are based on incremental funds compared to the monthly average balance for March 2024. More on this later in the article and how it impacts existing accountholders.

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Seth

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Earmark timelines

The timeline is specified by UOB as below:

Participating Deposit date or Participation Form submission date, whichever is laterParticipating Deposit will be Earmarked and Cash Credit will be credited byEarmark End Date (including this date)
1st April 2024 to 30th April 202431st May 202416th August 2024
1 May 2024 to 31 May 202428th June 202416th September 2024
1 June 2024 to 29 June 202431st July 202416th October 2024

Registration is required and you can do so here. Thereafter, deposit the required amount and maintain the funds throughout the promotion and earmark period.

Note that this entire article is also based on my understanding of the terms and conditions which you can find here.

For new users: a pretty good deal all around

Those who are new to UOB savings accounts or have little to no funds in their UOB accounts in the whole of March 2024 will find this a relatively easy and attractive promo.

If you are new to UOB savings accounts, your average balance in March 2024 will be S$0. This means that any amount you place into a UOB savings account will be counted as part of your top-up amount.

UOB One, despite the drop of interest from 1st May 2024 onwards, is still UOB’s highest interest account making it the best account to have in conjunction with this promo. I’ve worked out the total yield you can get from UOB One’s new interest rates:

Deposit AmountEffective Interest From PromoUOB One Interest*Total Yield
S$20,0001.20% p.a.3.00% p.a.4.20% p.a.
S$50,0001.51% p.a.3.00% p.a.4.51% p.a.
S$100,0001.66% p.a.3.38% p.a.5.04% p.a.
S$150,0002.01% p.a.4.00% p.a.6.01% p.a.
*from 1st May 2024 onwards

UOB One’s new capacity for S$150,000 will work very well with the S$150,000 tier of this promo, giving a total of 6.01% p.a. interest yield for 4 months of deposit. It’s a rate that is hard to beat and I don’t know any other account right now that can give this kind of interest for S$150,000.

Even the S$100,000 tier is pretty decent. It gives 5.04% p.a. interest, more or less restoring UOB One’s soon-to-be nerfed 5% p.a. rate for S$100,000 balance, albeit with a loss of liquidity for about 4 months.

At the lower tiers, 4.20% to 4.51% p.a. yields are also very good relative to the rest of the industry.

These rates assume you fulfil both the salary crediting and S$500 spend requirement of UOB One account. Read up the guide on how to do so.

And that’s it for new users – it’s straightforward since every dollar you place is considered as part of the top-up amount required for this promo, and the returns are pretty good. Subscribe for more updates for the next earmark promo and how to take advantage of that after this current promo.

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For existing users: top-up funds are now matched to March 2024’s monthly average balance

While past promos have used the day-end balance of the final day of the past quarter as the reference, this current earmark promo is using the monthly average balance of March 2024. This means that instead of looking at the balance of 31st March 2024, the monthly average balance of the entire month of March 2024 is used instead.

To be perfectly clear, it means that it does not matter if you have emptied your account in the last few days of March 2024 to prepare for this promo. Instead of taking your final day’s balance of S$0, this promo takes reference from the average balance across the entire month of March 2024.

As a result, if your monthly average balance in March 2024 is S$100,000, you will need to deposit (and earmark) another S$100,000 to get S$550 cash bonus from this promo. This makes your average balance S$200,000 which is really inefficient since UOB One only gives bonus interest for the first S$150,000 of balance.

Option 1: deposit additional funds until you reach S$150,000

So if I’m an existing user with an average balance amount of S$100,000 in March 2024, what can I do to take advantage of this promo? Depositing extra S$20,000 or S$50,000 could be two good options:

Top-up AmountCash BonusUOB One Interest*Total Yield
S$20,000S$803.56% p.a.
(on S$120,000 balance)
3.76% p.a.
S$50,000S$2504.00% p.a.
(on S$150,000 balance)
4.50% p.a.
S$100,000S$5503.01% p.a.
(on S$200,000 balance)
3.84% p.a.
S$150,000S$1,0002.42% p.a.
(on S$250,000 balance)
3.62% p.a.
*from 1st May 2024 onwards

For depositing S$20,000 on top of your S$100,000 balance and earmarking the funds, you will get a total yield of approximately 3.76% p.a.

The sweet spot will be topping up S$50,000. With the 4% p.a. interest from UOB One account for a S$150,000 balance and the S$250 cash bonus for a 4-month earmark period, the total yield is 4.50% p.a. which is pretty good.

You could also choose to deposit further S$100,000 or S$150,000 on top on your S$100,000 and get 3.84% p.a. or 3.62% p.a. respectively, and they seem like reasonable rates but you could likely get better returns if you are willing to use a second bank account.

For instance, instead of maintaining S$200,000 in your UOB One account and getting 3.84% p.a (3.01% p.a. from UOB One + S$550 cash bonus), you could go for the S$50,000 tier of this promo instead and get 4.50% on your S$150,000, and place the remaining S$50,000 you have into something that gives you 3.5% p.a. Your overall yield would be around 4.25% p.a. instead of just 3.84% p.a.

If you don’t have S$100,000 in your UOB One account yet, I would suggest topping up S$20,000, S$50,000 or S$100,000 as long as your end balance after the top up is less than S$150,000. This would result in the best yield from the UOB One account.

Option 2: use a second player

My personal preferred way to do things would be to use a “Player 2” strategy. As the name suggests, you’d have to involve a second person, and the viability of this method highly depends on the level of trust you have in the person in mind because you have to entrust the person with a significant amount of money.

It is, however, a super easy way to maximise the returns from this promo if you are an existing user with funds in your account for March 2024. Use your Player 2 to sign up for a UOB One account, then transfer your funds over to his/her account. Every single dollar now counts toward the earmark promo (see new user section above), and you can get as much as 6.01% p.a. for a S$150,000 deposit.

UOB One is still a viable account in spite of nerfs

Despite the significant drop in rates taking effect 1st May 2024, UOB One is still a decent place for savings. This is especially so if you are able to max out the account at S$150,000 and take advantage of this earmark promo.

I suspect there are more things in flux in the world of savings accounts, so stay subscribed for more savings related updates and deals.

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1 thought on “UOB Savings Promo Q2 2024: Earmark Funds For S$80 to S$1,000 Cash (up to 6% p.a. Yield)

  1. Hi Seth! Long time reader, first time commenting 🙂
    Can you confirm whether the additional interest is still a component of this promotion? The promotion T&C’s only mention the cash bonus and no mention of possibility to earn additional interest. Thanks!

    https://www.uob.com.sg/web-resources/personal/pdf/personal/save/common/terms-and-conditions-savings-promotion.pdf?s_cid=grm%3Asg%3Aowned%3Aonl%3Apweb%3Acasaprom%3Abu%3Ana%3Acasa%3A010424-290624%3AQ2SAVE24%3Ana%3Ana&vid=na&pid=CD07Q2SAVE24

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