UOB, KrisFlyer launch savings account that rewards with air miles

civicguy

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5 miles per dollar ?! Probably has a cap.



UOB, KrisFlyer launch savings account that rewards with air miles

SINGAPORE - United Overseas Bank and KrisFlyer have tied up to launch a savings account with debit card that rewards account holders with air miles when they save or spend.

Under the KrisFlyer UOB Account, customers with an account balance of S$350,000 and above will earn 5.4 Krisflyer miles for every dollar they spend using their Krisflyer UOB debit card.

For those with an account balance of between S$100,000 and S$350,000, the rate is 3.4 miles per dollar spent.

Account balances between S$3,000 and S$100,000 will earn 1.4 miles for every dollar spent.

The account provides way for customers who prefer to spend on a debit card, or millennials in the early stages of their career who may not be eligible for a credit card to accumulate KrisFlyer miles, the partners said at the launch of the account on Tuesday (April 18).

A customer who maintains a monthly average balance of S$20,000 in their account and spends S$1,000 a month over 12 months would earn 16,800 KrisFlyer miles, which would be enough for them to redeem a flight on Singapore Airlines or SilkAir to places such as Bali, Langkawi and Lombok.

The account also offers cardmembers special privileges on Scoot and Tigerair.

For example, customers who buy Scoot or Tigerair tickets using the KrisFlyer UOB debit card on a dedicated site (www.flyscoot.com/KrisflyerUOB) or via UOB's mobile banking app, UOB Mighty, can carry an additional 5kg when they purchase a minimum baggage allowance of 20kg.

UOB's head of personal financial services Singapore, Ms Jacquelyn Tan, said the bank has seen spending on its debit cards grow 40 per cent over the past two years, while traveling spend on debit cards has risen 15 per cent.

Among its credit cards, air miles are one of the most frequent reward redemption categories and Krisflyer miles in particular are very popular, she added.
 

sgdividends

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Im not hopeful with this account as knowing UOB, many hoops, exclusions, caps and many many quick and frequent changes in their terms and conditions based on what they read in moneymind HWZ.

Again, i want to say, like i always say, DBS (open), OCBC(open) and many other banks ESPECIALLY UOB ( silent) is lurking in this forum.
 
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dahnoob

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So anything under $100k will get you a PRVI card with restricted partners. I wonder if the 5.4 mpd includes the base 1.2 mpd on a UOB Privilege Banking Card, but even if it did, it's likely that the rates and services offered are sub-par compared to other banks.
 

sgdividends

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So the savings account yield any interest or not?

Even their wealth premium account ( wealth banking) need 350k above then 0.35% pa.

I think u can bet the interest is at MOST 0.35% p a ...

Basically exchanging interest for krisflyer miles at 1.4mpd, which could actually have easily been gotten by using other cc for 4milespd ( 1.4 + 4 = 5.4). And debit fraud you eat. CC fraud your liability is 100 bucks.

Quite smart of UOB. They eradicated totally their risk of fraud, tranferring the risk to you , airmiles are dirt cheap for them and yet earn fees for transactions Master/visa/amex , earn more from redemption of points to krisflyer miles and also expiry of orphan miles.

Bet they lurked secretly in this forum to learn that more people are boarding the miles wagon!
 
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mikezuper

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Well rounded analysis bro!

I am more on miles and cash rebates - totally give up on points as it is almost a scam to me i.e. any other year increase redemption required, limit here and there, etc2.

Hwz probably represent 5% of Singapore users .. if not more.
 

starbugs

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For those with an account balance of between S$100,000 and S$350,000, the rate is 3.4 miles per dollar spent.

Account balances between S$3,000 and S$100,000 will earn 1.4 miles for every dollar spent.

The account provides way for customers who prefer to spend on a debit card, or millennials in the early stages of their career who may not be eligible for a credit card to accumulate KrisFlyer miles, the partners said at the launch of the account on Tuesday (April 18).

Poor product positioning. Not that many millennials earn less than $2500/mth but have $3000 sitting in the bank. Even fewer have $100k. The programme will probably shut down within 5 years.
 

789asd

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i actually think this product maybe worthwhile depending on your expect yield on your savings amount .

singapore government saving bond is 1% yield per annum.

assuming 350k savings at 1%, thats $3,500 in interest payments.

if you're able to spend and gain points at 5.4 miles per $1, you can redeem a business class ticket return to LA/Europe which has a face value of more than $3,500 sgd.

for the poor, like someone else said, stick to credit card.
for the rich, they'll have to see if they can yield better with other products.

if someone had $350,000, its unlikely to be held as cash, so will need to see if UOB will take the deposit as stock or bonds.

again, depends on your risk profile, maybe you dont like risk and airmiles guarantees an actual interest payment in form of a physical plane ticket that has a higher value than a 1% yield.

but this is a UOB product and will be full of LIES and MISLEADING INFORMATION
 
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dahnoob

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Poor product positioning. Not that many millennials earn less than $2500/mth but have $3000 sitting in the bank. Even fewer have $100k. The programme will probably shut down within 5 years.

5 years is being optimistic. SCB ended their 'miles deposit' scheme, probably due to the lack of traction. The only debit card I carry with me is the POSB Passion, where I use it as a passion card instead of debit card.
 

fone

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Lol, looks more to me like for those people who have spending power, and cash, but no (proper) income. I'd believe that the account be similar to the SCB fixed deposits that gives miles (in place of interests) and at S$0.01 per mile, it gives lesser "interests" than the actual FD that gives cash. My prediction be that there is a limit to the amount of miles you can earn under the 5.4mpd rate, which should be at the rate of 0.35% PA as others have posted (at about S$0.01 per mile), then will be at a reduced rate.

Earn <$2500, how much you think they can spend for the amount of miles worthwhile?
 

789asd

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My prediction be that there is a limit to the amount of miles you can earn under the 5.4mpd rate, which should be at the rate of 0.35% PA as others have posted (at about S$0.01 per mile), then will be at a reduced rate.

good point. i bet the dodgey marketers are hoping to catch people out this way.
 

dahnoob

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Lol, looks more to me like for those people who have spending power, and cash, but no (proper) income. I'd believe that the account be similar to the SCB fixed deposits that gives miles (in place of interests) and at S$0.01 per mile, it gives lesser "interests" than the actual FD that gives cash. My prediction be that there is a limit to the amount of miles you can earn under the 5.4mpd rate, which should be at the rate of 0.35% PA as others have posted (at about S$0.01 per mile), then will be at a reduced rate.

Earn <$2500, how much you think they can spend for the amount of miles worthwhile?

With $350k in cash savings, one can open up to 350 secured credit cards, likely covering every single card issued in Singapore. I struggle to see why he would instead choose to lock down the entire $350k, have poor rates, and use a debit card for his expenditure. SCB has ended their miles FD program, which is only proof that such schemes are quite sketchy to push out. If they set an earn cap for that 5.4mpd, it only further discourage people to use it. Honestly, I don't see this going anywhere, but I look forward to the official announcement along with its TNCs.
 

vince123123

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I'm also keen to read about the T&Cs. 350k is not small amount but if the terms are generous to customers, then it could be worth considering. If there are exclusions the size of an encylopedia or caps the size of a teaspoon, then it's not going to work.
 

rVn_mUfC

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If I have 350k I would be a fool to lock down this amount for pathetic interest. Rather park it somewhere and use 4miles card. The opportunity cost of parking the amount isn't worth it.
 

dahnoob

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I'm also keen to read about the T&Cs. 350k is not small amount but if the terms are generous to customers, then it could be worth considering. If there are exclusions the size of an encylopedia or caps the size of a teaspoon, then it's not going to work.

This actually made me LOL. Great sense of humour! The only condition I might jump on it is unlimited earning, no exclusions and stackable with another card (PRVI, for example). I wouldn't mind parking $350k for 6.8mpd on EVERYTHING, even if it meant reduced interest on this 350k.
 

vince123123

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It depends on personal circumstances. If there is no cap for this and includes ALL spending, I'll seriously consider park $350k into it because I could make up for loss of interest by the increased miles earn especially if there are no 4mpd on the spendings I anticipate. Also, depending on the T&Cs, it could be possible to just park $350k for a short while, spend, then withdraw? A lot depends on the T&Cs.

If I have 350k I would be a fool to lock down this amount for pathetic interest. Rather park it somewhere and use 4miles card. The opportunity cost of parking the amount isn't worth it.
 

vince123123

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Haha, I ain't that much of a humour writer unlike mamy other bloggers and I'm glad you were entertained haha.

Like you, I would go for it if its unlimited and no exclusions. I don't forsee it being stackable though, since I gather you are supposed to use the dedicated UOB-Krisflyer debit mastercard rather than your UOB PRIVI to do the spending itself.


This actually made me LOL. Great sense of humour! The only condition I might jump on it is unlimited earning, no exclusions and stackable with another card (PRVI, for example). I wouldn't mind parking $350k for 6.8mpd on EVERYTHING, even if it meant reduced interest on this 350k.
 

rVn_mUfC

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It depends on personal circumstances. If there is no cap for this and includes ALL spending, I'll seriously consider park $350k into it because I could make up for loss of interest by the increased miles earn especially if there are no 4mpd on the spendings I anticipate. Also, depending on the T&Cs, it could be possible to just park $350k for a short while, spend, then withdraw? A lot depends on the T&Cs.

I think it will only work if there is no 4mpd for the spendings that you want. If not, it's just 1.4mile extra which isn't that significant.

But base on UOB past history, the chance of it being spending without restrictions or cap is probably 1%.
 

dahnoob

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I think it will only work if there is no 4mpd for the spendings that you want. If not, it's just 1.4mile extra which isn't that significant.

But base on UOB past history, the chance of it being spending without restrictions or cap is probably 1%.

It's UOB we're talking about :)

I quote from FT:

"BioDynamic Reward Points -
Your points will be posted only if the pie you ate was made from oranges grown on Himalayas. To be eligible for the points , these oranges must have been nurtured by sheep horn manure. This is applicable only for first 50 sheep horns found in qualifying period. Please note, qualifying period refers to 23 days before earth approaches Apogee and ends 3.5 days after it. If the above conditions are not met, we will steal 7500 points towards annual fee payment without your permission."
 
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