What it means for us as consumers
Just yesterday OCBC Bank announced that it will reduce the salary credit bonus interest for customers on the OCBC 360 savings account from July 1.
For balances up to $35,000, the salary credit bonus interest will be halved to 0.6 per cent, down from the current 1.2 per cent. Balances between $35,000 and $70,000 will earn 1.2 per cent interest, down from 2.4 per cent. The bank will also stop offering the credit card spend bonus interest from July 1.
A bank spokesperson cited a deteriorating macro interest rate environment that made this product offering unsustainable. This revision comes about a month after OCBC previously announced revisions which took place on 2 May 2020.
While there some people are rushing to change their salary crediting accounts, it is better to adopt a wait-and-see approach as I predict more banks will follow suit.
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