SINGAPORE: Standard Chartered Bank is going against the downward trend in savings interest rates in the city-state by raising its maximum rate for its Bonus$aver savings account to 8.05% per year. The increase from 6.05% took effect on Sunday (June 1), Channel News Asia (CNA) reported.
Banks typically follow the monetary policy decisions of the US Federal Reserve. Since the Fed began cutting rates last year due to uncertain economic conditions, banks have lowered the interest rates paid to savers. But Standard Chartered is doing the opposite by raising its rates.
When asked why it is doing so and whether the move was sustainable, the bank told CNA that its “headline rate matches the overall relationship value” with clients, including daily banking and wealth services.
Usman Khalid, the bank’s global and Singapore head for deposits, mortgages and payments, said this approach lets them sustainably offer rewards to clients who choose the bank as their primary banking partner.
To get the bonus interest, account holders must meet certain conditions. They need to credit a salary of at least S$3,000 a month, spend at least S$1,000 a month on eligible credit or debit cards, and have investments or insurance with the bank.
One change is that equity investments of at least S$20,000 made through the bank’s online trading platform now count for the investment category. The bank said the change follows a noticeable rise in trading interest, with new client acquisition up 50% in 2024 compared to the year before.
Account holders who spend at least S$1,000 a month on eligible credit and debit cards can now earn a 1.5% bonus interest rate, up from 1%. The bonus interest rate for salary credits also increased to 1.5% a year, up from 1% before.
In addition, account holders who invest or get insured can now earn a 2.5% bonus, compared to the previous 2%. The bonus interest rates apply to the first S$100,000 of savings. /TISG
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