Tuesday, 2 October 2018

Should we change to OCBC 360 with their new terms?

I’m sure by now many would have known about the upcoming changes to the OCBC 360 terms effective from 1st Nov 2018 for all new and existing customers. If you have no idea yet, OCBC is updating their 360 account structure and you can read about it here.

Here is a comparison on the current and updated structure of my previously beloved OCBC 360 account (currently uses Bank of China as holding ground for my emergency funds).

Current structure

Updated structure

OCBC has changed to a tiered structure like many other banks and is encouraging more savings by increasing the incentives and removing the payment component. They have also renamed the Save component to Grow (but it is highly unlikely any of us would even benefit from it, therefore, it is removed from the assumption below). Here’s how the new structure compares to the current structure assuming you have:
1) salary credit of $2000/month
2) credit card spending of $500/month
3) incremental account balance of $500/month.

You can use the calculators for the current structure here and the new structure here.
As you can see, the difference is only obvious after the $30,000 balance and eventually levels off at $70,000 with the new structure being 24% better than the current structure.

This might warrant another look to compare with other banks to see which account is better for holding emergency funds. Just a quick glance at my BOC's interest and I am quite certain I would give this new structure a miss.

Investing Wolf
Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. The above is all my own opinion and no one else’s.

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