A stash and forget account is essentially an account that allows you to put aside extra money at a good interest rate. You don’t have to do anything except maybe increase your balance from month to month. The UOB Stash is one such account.
Does it live up to its name as a decent stash-and-forget savings account in Singapore? Let’s look at the pros and cons.
Note: This article reflects the latest interest rate changes for UOB Stash accounts as of 1 January 2022.
The UOB Stash savings account at a glance
UOB Stash Savings Account |
|
Interest rate (first $10,000) |
0.05% |
Interest rate (next $30,000) |
0.3% |
Interest rate (next $30,000) |
0.6% |
Interest rate (next $30,000) |
1% |
Minimum age |
15 |
nationality |
Singaporeans, PRs, foreigners |
First deposit |
1,000 US dollars |
Minimum balance |
$10,000 (to receive bonus interest) |
Undercut fee |
$2 |
Bonus interest cap |
100,000 US dollars |
How does the UOB Stash savings account work?
While other active savings accounts like UOB One And OCBC360 offer more attractive interest rates, but these accounts require the fulfillment of transaction criteria such as credit card spending, credits to your salary, and others. The UOB Stash account requires none of this and you can earn up to 1% interest.
The UOB Stash account also has low barriers to entry, such as a low minimum deposit of $1,000 and a low under-deposit fee of $2.
For the initial savings amount under $10,000, you will receive a mediocre 0.05% interest. However, once you save $10,000, you are eligible for bonus interest if you meet these requirements:
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Maintain a monthly average balance (MAB) above $10,000
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Maintain or increase your MAB compared to the previous month
UOB One Account
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Further details
Main features
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Up to 2.50% pa interest
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Up to $200 cash credit when you register and apply for a UOB credit card online. Terms and conditions apply.
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Low initial deposit of $500
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Conveniently withdraw cash without a debit card via mobile banking
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The UOB Young Professionals Solution is a combination of UOB One Account, UOB YOLO and the unique Sweep feature that allows you to automatically invest your earned account interest and card discounts into a mutual fund.
interest rate
Bonus interest rate
Highlights
Citizenship status |
---|
S$500 |
S$1,000 |
S$5 |
N/A |
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OCBC 360 Account
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Further details
Main features
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Minimum salary credit of S$1,800 per GIRO
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OCBC 360 is a savings account with a base interest rate of 0.05% pa on the account balance
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You can benefit from bonus interest when you credit your monthly salary, reach certain deposit amounts such as monthly increments of S$500 or a total balance of S$200,000, purchase insurance or invest with OCBC.
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Increase your savings balance in the OCBC 360 Account by S$500 every month and enjoy 0.10% bonus interest on the first S$25,000, followed by 0.20% bonus interest on the next S$25,000 and 0.40% bonus interest on the third S$25,000.
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If your account balance is over S$200,000, you will receive an additional 0.40% on your first S$75,000 deposit.
interest rate
Bonus interest rate
Monthly salary credit |
---|
OCBC Insurance Plans |
OCBC mutual funds, structured deposits or bonds and structured products |
Highlights
Citizenship status |
---|
S$1,000 |
S$3,000 |
S$2 (waived for 1 year) |
N/A |
Over 1,100 ATMs in the joint network in Singapore |
N/A |
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Potential pitfalls of the UOB Stash savings account
To ensure you maintain or increase your MAB, you may need to limit your withdrawals and keep track of your deposited amount.
If you anticipate needing a large sum of money within the next 12 months, you should probably opt for something without this requirement, such as the CIMB FastSaver.
To get the most out of UOB Stash, you should treat it as a pure stash account and withdraw from your active savings account instead. This will allow the funds in your UOB Stash account to grow.
If your savings exceed $100,000, the interest rate on your account will reset to 0.05%. In this case, it’s better to save your excess cash elsewhere.
In this case, you may want to use some of the Fixed deposit promotions 2022 is happening right now.
UOB Stash vs Citibank MaxiGain vs CIMB FastSaver – which is best?
Citibank MaxiGain, UOB Stash and CIMB FastSaver are all Stash accounts, so who is the winner here?
Let’s look at the once popular CIMB FastSaver Accountwhich, like UOB, has reduced its interest rates as of January 1, 2022:
CIMB FastSaver Account |
|
Interest rate (first $10,000) |
0.3% |
Interest rate (next $65,000) |
0.3% |
Interest rate (> $75,000) |
0.15% |
Both accounts look equally bad in terms of interest rates, but CIMB FastSaver has a slight edge. While you must have at least S$1,000 in your CIMB FastSaver account on any given day to earn interest, you won’t be charged any under-balance fees.
The Citi MaxiGain The account is similar to UOB Stash in that you need to maintain or increase your balance to receive bonus interest. You get an extra 0.05% every month, but note that this is capped at 0.60%. Oh well.
Verdict: Given the low interest rates offered by all three accounts, we would recommend you opt for the CIMB FastSaver account as it has the lowest account requirements.
Senior Relationship Manager
Citi MaxiGain Savings Account (Citigold)
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Further details
Main features
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Base interest rate 0.01% pa (from October 2020)
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Bonus interest up to a maximum of 0.6% pa
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Start a Citi Priority relationship in minutes with S$70,000.
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Enjoy priority banking wealth packages with preferential rates and personalized services.
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Access quick financial planning tips and digital investment solutions (e.g. Citibank Brokerage and eFX) that save time and fees.
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Exclusive Citi Priority Delights offers and lifestyle privileges with the Citi Priority Debit Mastercard ®.
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Banking easily with instant payments and transfers, plus real-time balance updates with the Citi Mobile® app.
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Free Citibank Global Transfer and ATM withdrawals at Citibank ATMs worldwide.
interest rate
Bonus interest rate
Highlights
Citizenship status |
---|
S$10,000 |
S$0 |
N/A |
S$15 |
>50 in Singapore, >9000 worldwide |
N/A |
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So who should use UOB Stash?
BWe would say that the UOB Stash account is suitable for those who want to put aside a lot of cash (up to $100,000) and prefer to bank with UOB rather than CIMB.
The increasing MAB criterion makes it similar to a fixed deposit, but a little more liquid. You can still withdraw cash; just make sure to top up your account before the end of the month to qualify for bonus interest.
Also, it is easier to bank at UOB as there are branches and ATMs everywhere and the internet banking interface is decent. The same cannot be said for CIMB.
How to open a UOB Stash account
The UOB Stash Savings Account is very straightforward as a “passive” savings account. Even if you don’t currently have much saved, you can gradually increase your savings balance, which in turn increases your interest rate.
Setting up the account can be easily done online, saving you time and effort. You can set it up immediately by getting your personal information through MyInfo. No further submission of documents is required.
Do you know someone who would benefit from the UOB Stash account? Share this article with them.
The post “UOB Stash Savings Account – MoneySmart Review 2022” first appeared on the MoneySmart blog.
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Original article: UOB Stash Savings Account – MoneySmart Review 2022.
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