Starting May 1, UOB reduces the maximum interest rate to 3.3%, following the trend set by other banks in Singapore.

United Overseas Bank (UOB) has revealed plans to lower the interest rates on its popular One Account for the second consecutive year, sparking discontent among customers. From May 1, the maximum interest rate will be reduced to 3.3% per annum on the first S$150,000, a significant drop from the current 4%, according to The Business Times.

This follows a similar trend last year when UOB’s One Account saw a reduction from a 5% interest rate on deposits up to S$100,000. The bank’s decision aligns with market expectations but has nonetheless left many customers dissatisfied.

Earlier this year, Oversea-Chinese Banking Corporation (OCBC) also followed suit, announcing a rate cut for its 360 Account, which will drop to 6.3% on the first S$100,000 from the previous 7.65%. Additionally, the rate for its “grow” category will fall from 2.4% to 2.2%, and the qualifying balance for this category will rise from S$200,000 to S$250,000.

The recent rate reductions have sparked frustration among customers on social media. One user remarked, “Banks lure you in with high-interest rates, then drop them once you’re committed.” Another pointed out the disparity between low savings rates and high loan interest rates in Singapore. Others voiced concerns about the broader economic pressures, such as rising GST and inflation, and how banks seem to be benefiting from these cuts while customers bear the brunt of the financial strain.

The rate cuts come amid a global trend where the US Federal Reserve reduced interest rates four times last year, and further cuts are anticipated in 2025. Despite this, banks in Singapore appear to be adjusting their rates downwards as part of broader market shifts, leaving savers disappointed and questioning the direction of the country’s financial landscape.