Unlike with other savings accounts, mile chasers can leverage on both base and bonus miles with a KrisFlyer UOB savings account. Earn up to 6.4 KrisFlyer miles on top of a 0.05% p.a. interest rate.
Poised to win the hearts of mile chasers, the KrisFlyer UOB savings account lets you earn a maximum of 6.4 KrisFlyer miles when you spend on both the UOB debit card and credit card as well as credit your salary to the account.
While the pillars are straightforward enough, some turbulence is to be expected. There’s a 5% cap on bonus miles earned that could ground you back to reality if you’re only in it for the miles.
How the KrisFlyer UOB Savings Account works
As compared to other savings accounts, the KrisFlyer UOB savings account doesn’t set too many requirements for you to get the most out of your savings and spending.
First things first, you’ll have to deposit a minimum of S$1,000 = to open the savings account. Once done, you’ll earn the base interest rate of 0.05% p.a. on the first S$15,000.
The next requirement is the KrisFlyer UOB debit card spend, which is when the base KrisFlyer miles come into the picture. As an account holder, you’re able to earn 0.4 miles per S$1 spent on your UOB KrisFlyer debit card straight out the gate.
To earn an additional 5 bonus miles per S$1 spend, charge your day-to-day shopping to one of the eligible UOB cards as well as maintain at least S$1,000 in your account balance. However, the amount of bonus miles earned is capped at 5% of the account’s monthly average bonus.
If you wish to level up from 5 bonus miles to 6 bonus miles per S$1 spend, all you need to do is credit a minimum salary of S$2,000 to your KrisFlyer savings account. Unfortunately, the cap of 5% MAB is applicable here too.
The aforementioned eligible UOB credit cards you can use to earn bonus KrisFlyer miles are:
- KrisFlyer UOB credit card
- UOB PRVI Miles card
- UOB Visa Infinite Metal card
- UOB Privilege Banking card
- UOB Reserve card
Pros and cons of the KrisFlyer UOB Savings Account
KrisFlyer UOB savings account product summary:
- Base interest rate: 0.05% p.a.
- Maximum interest rate: 0.05% p.a.
- Minimum average daily balance for auto-waiver of monthly fall-below fee: S$1,000
- Minimum initial deposit: S$1,000
|Easily earn KrisFlyer miles at a base rate of 0.04 miles per S$1 spend||Low interest rate of 0.05% p.a.|
|Earn a bonus of 6 KrisFlyer miles per S$1 spend when you spend on eligible UOB cards||Bonus KrisFlyer miles earned is limited to 5% of the account’s monthly average balance (MAB)|
|No minimum income requirement|
|No minimum card spend|
Why should you choose the KrisFlyer UOB Savings Account?
#1: Offers an easy way to earn miles while you save and spend
We all want to earn miles without having to bend over backwards. KrisFlyer UOB account allows you to accumulate miles while fitting seamlessly with your spending (and saving) habits. Seeing as parking a sum of money in a savings account and shopping are universal activities we do every day, it is certainly advantageous to tap into those essentials to generate more miles.
#2: Bonus miles are easily achievable but 5% MAB cap on bonus miles could put a damper on things
Now here’s where reality sets in for those hoping to pile up bonus miles just by meeting the aforementioned requirements.
At the end of the day, the total bonus KrisFlyers miles earned is limited to the amount you have in your account. This means that the higher your balance, the more bonus miles you can keep.
Here’s what your bonus miles earnings might look like in a year with a monthly card spend of S$500 and account balance of S$10,000 (assuming you’re crediting your salary there too).
On the flipside, if we were to do away with the 5% MAB cap, your monthly bonus KrisFlyers miles will add up to: S$500 x 6 miles = 3,000 miles
In a year, this will snowball to 36,000 miles. This just goes to show how restrictive the MAB cap can be, especially if your balance does not increase over time.
#3: Interest rate not the highest compared to other savings accounts
In terms of interest rate earned, there’s not much to marvel about. The account’s interest rate of 0.05% p.a. is the entry-level rate for most savings accounts and usually serves as the jumping off point to earn more as you fulfill more requirements.
However, the 0.05% p.a. interest rate remains stagnant even as your account balance grows in the next S$85,000, next S$250,000 and so on.
With this in mind, the KrisFlyer UOB savings account remains first and foremost as a means to rake in more miles above anything else. Looking at this from a savings standpoint, you may be missing out on opportunities to earn a higher interest rate, especially if you’re sitting on a substantial amount of capital.
For example, Standard Chartered Bonus$aver account gives a bonus 0.10% p.a. interest rate just by crediting a salary of at least S$3,000.
What charges or fees should you look out for?
- Minimum initial deposit: S$1,000
- Fall-below fee: S$2 per month if below minimum of S$1,000 balance
- Early account closure fee: S$30 (within 6 months of opening)
- Cheque book fee: S$10
- Debit card annual fee: S$53.50*
- Credit card annual fee: S$192.60*
*Fee waiver for first year
How to apply?
Thanks to SingPass, the application process for new customers can be done online. As long as you meet the below requirements, the entire process should be relatively fuss-free. Students who are keen on jumping onboard and start chasing miles, you’ll be happy to know that there’s currently no minimum income requirement to open an account.
Eligibility requirements are as follows:
- At least 18 years old
- Singapore citizen / Permanent Resident / Foreigner
- Initial deposit of S$1,000
If you already have a UOB account, applying is just as easy. Be sure to sign in through the UOB internet banking site, then simply provide your particulars and submit the application form.
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By Marissa Saini
Your friendly neighbourhood cat enthusiast who enjoys not being broke. Spend less, save more is the name of the game. Firm believer that being financially savvy is not about the destination, but the friends you make along the way.