I was utterly shocked beyond words when my wife told me that she had found an almost risk-free way to earn 7.8% interest income using a saving accounts that would beat my equity investment portfolio. Apparently, United Overseas Bank (UOB) is launching its UOB One Account which offers a highest interest rate ever on one's savings. Too good to be true right and what is the catch here?
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| 2 Steps to earn "7.8%" interest rate per annum |
Effective interest rates is just 5% for up to S$100K and definitely not 7.8%
(1) Well, the actual effective interest rate is just 5% for up to S$100K. Yes, the 7.8% is just a gimmick as it applies only to amount higher than S$75K but less than S$100K banding. If you have only S$30K or less in your balances, then you will at most earn a 3.85% per annum rate- please see below illustrative
