While direct comparisons are difficult given the different qualifying conditions imposed by the banks, Standard Chartered now offers the highest headline interest rate among flagship savings account offerings in Singapore.
UOB One account holders will earn up to 5.3 per cent on their first S$150,000 if they credit their salary and spend a minimum of S$500 on eligible cards.
OCBC’s flagship 360 account offers a maximum effective interest rate of 6.3 per cent a year on the first S$100,000 of savings when customers credit their salary, save, spend, as well as take up investment and insurance products with the bank.
DBS’ flagship Multiplier account, whose rates have been unchanged since November 2022, offers a maximum interest rate of up to 4.1 per cent a year for the first S$100,000 in deposits.
Likewise, customers have to tick the boxes in terms of crediting their salary to the bank and transact in three categories with a total volume of S$30,000 or more a month.
A SURPRISE MOVE THAT MAY NOT BE SUSTAINABLE: EXPERT
Given the broader trend of banks trimming rates, Standard Chartered’s latest announcement came as a surprise, said Mr Tan Chin Yu, lead of advisory at wealth advisory firm Providend.
While expectations for central banks to cut rates have slowed due to economic uncertainties, the move is unlikely due to a change in the bank’s assessment of where global interest rates are headed but “more of a strategic move to attract deposits” and grow market share, he added.
Such an offering “may not be sustainable over the long term” if global interest rates continue to ease, Mr Tan said.
“However, this remains to be seen, depending on how the global economy pans out which would have an impact on how the Fed reacts.”
Following three rate cuts last year, the US Fed has kept monetary policy steady so far in 2025 and is expected to hold interest rates steady at its upcoming decision on Jun 18, largely due to mixed economic signals and US President Donald Trump’s changing tariff policy.
Minutes from the Fed’s meeting in May showed that officials prefer to wait for more clarity on fiscal and trade policy before considering lowering rates again, although recent comments by Fed officials suggest that rate cuts remain on the table.
Fed governor Christopher Waller, for instance, said on Monday that interest rate cuts are still possible later this year as a rise in inflation pressures due to the tariffs is unlikely to be persistent.
The uncertainty means that customers thinking of switching savings accounts should look beyond the headline interest rates and carefully consider the various eligibility criteria, Mr Tan said.
“Do consider whether the criteria suit your personal lifestyle and habits,” he told CNA. “You don’t want to intentionally have to spend more or buy certain financial products that you don’t need just to justify meeting the various thresholds.”
Customers should also be prepared that such promotional rates may change quickly and with that, the hassle of having to change banking accounts again, Mr Tan said.
