I’ve been using the OCBC Premier Dividend+ Account to boost my spare cash for a while now. It used to offer a fantastic 3.7% interest rate, which rivalled Singapore Treasury bills (T-bills) without the hassle of rolling and locking in for a 6-month period.
During a recent review of my finances, I noticed the interest rate from my OCBC Premier Dividend+ Account seemed to have dropped. I used to receive two bonus interests every month:
“Bonus interest mthly no w/d” and“Bonus interest mthly now/d&save”
But this month I only received one bonus interest.
Digging deeper, I discovered they have made some changes to the terms and conditions.
OCBC Premier Dividend+ Account Interest Rate Changes
While I knew about the interest rate cut for OCBC Premier Dividend+ Account effective April 1st, 2024, I hadn’t realized there were now additional requirements to reach the top tier.
Here’s the breakdown:
Previously, the Premier Dividend Account offered tiered interest rates, with the highest reaching 3.70% per year for balances with no withdrawals in a month. This top tier has been revised to a new high of 3.30% per year.The minimum monthly deposit required to qualify for the highest tier (now with 3.30% interest) has also increased from S$2,000 to S$3,000.
Below is a diagram to illustrate the interest rate tier breakdown.
Singapore’s Risk-Free Rate is Coming Down
This reduction in interest rates coincides with a similar interest rate cut move by UOB for their One Account. It reflects a broader trend of lower interest rates across Singapore. The latest T-Bill auction result (BS24110T on 23 May) is only 3.65%.
Singapore’s interest rates seem to be decoupling from those in the US. Even with the US aiming to maintain high rates for an extended period, Singapore’s risk-free rate continues to fall.
Is the OCBC Premier Dividend+ Account Still Worth It?
Honestly, achieving the 3.3% rate feels a lot more
