People have been talking about the UOB One Account and some readers asked me what I think of it. I said that I would like to see what the revamped OCBC 360 Account is going to look like and make a comparison.

Now, first, we look at the UOB One Account. At its simplest:

1. Start an account.
2. Get a UOB ONE VISA card.
3. Charge $500 a month to this card.
4. Maintain $50,000 in the account.
5. Get an effective interest rate of 1.6% per annum.

Now, if we were to credit our salary monthly or make 3 GIRO debit transactions per month, all else remaining equal, we will get an effective interest rate of 2.43%.

What I don’t like about the UOB One Account is that the interest rates are tiered in the first $50,000. So, we really have to maintain $50,000 in the account to …