Recently, UOB has launched its Nation of Savers Promotion which will end on 30th September 2024. How does the return from UOB Nation of Savers fare against UOB fixed deposit? From the name of the campaign, it sounds like some UOB National Day Savings Promotion to celebrate Singapore National Day. This is because every year during this period, local banks in Singapore will usually launch some form of fixed deposit promotions to celebrate Singapore’s National Day. The interest rates offered by such promotions were usually higher than normal days.
This year, I looked up UOB’s website but could not find any National Day Fixed Deposit promotions. Instead, I found the Nation of Savers Promotion. Similar to how a fixed deposit works, you need to deposit a minimum of S$20,000 in new funds in your eligible UOB savings account. These new funds will be set aside for 5 months and cannot be withdrawn within this period.
The eligible UOB savings account are
- UOB One Account
- UOB Stash Account
- UOB Lady’s Savings Account
- UOB Passbook Savings Account
- UOB Uniplus Account.
If you do not have any of the above UOB savings account, you can apply online, deposit a minimum of S$50,000 in new funds and receive up to an additional S$400 bonus cash reward. Depending on the new funds amount, below are the guaranteed cash credit amount you will get.
How UOB Nation of Savers Fare Against UOB Fixed Deposit Promotion?
If you revisit the fixed deposit promotion offered by UOB in July 2024, below are the interest rates per annum and their respective tenure.
Tenure: 6 Months
Interest Rate: 2.70% p.a.
Minimum Amount: S$10,000
Tenure: 10 Months
Interest Rate: 2.60% p.a.
Minimum Amount: S$10,000
The effective return of UOB Nation of Savers promotion is
S$100/$20,000 * 12 divide by 5 = 1.20% p.a.
My Opinion of UOB National Day Savings Promotion
If I were to lock down my money, I would choose UOB fixed deposit over UOB Nation of Savers Promotion. The effective return of UOB Nation of Savers is so much lesser than what traditional fixed deposits could offer.
Why would anybody lock down their money for lesser returns?
That’s simply coz you can stack it with UOB ONE interest account (max EIR 4% on 150K) . so all in with promo, one can max it to 5.9% assuming conditions met. you are not analysing it correctly.