UOB, KrisFlyer launch savings account that rewards with air miles

[mikezuper]

theyre not product strategists if they release a weaker product thinking it will do better than existing products.

They should leave and element of 'Risk' where both parties carry uncertainties but favour the Bank e.g. 0.8% of SIBOR so they can makan the 0.2% all the time where SIBOR fluctuates.

They just need to pass their daily position with the Treasury folks to manage the fund.

 

[lalaisgongon]

They should leave and element of 'Risk' where both parties carry uncertainties but favour the Bank e.g. 0.8% of SIBOR so they can makan the 0.2% all the time where SIBOR fluctuates.

They just need to pass their daily position with the Treasury folks to manage the fund.

So like what citibank does with maxigain?

 

[mikezuper]

So like what citibank does with maxigain?

Yeah, but twist it towards the miles loh for the credit card spending.

More miles if spend on Singapore Airlines group.

Save, spend, earn combo.

Not like the current one: Save (earn nothing), Spend (get more miles, but UOB acquire it cheaply at Bulk Purchase), Earn (nothing, should be some incentive if meet both).

 

[highsulphur]

Worst product launch ever. Can't believe all the wooha on this crap product.

No interest? What are they thinking?

 

[sgbanking]

totally disappointed with this product too

deposit 350k with no interest, in return for 17.5k miles monthly (which may be equivalent to $350 value), that's like 1% p.a. interest rate

not sure how they target their customers:

1. students with no deposit, generally can hardly hit $500 min requirement
2. young professional, might not be so cash rich and thus poor Mile-Per-Dollar rate
3. even for people with so much cash, won't be enticed by this poor scheme (especially the deposit requirement and 5% MAB cap on miles to be earned)

 

[civicguy]

Sometimes I wonder how they design all these products. In ivory towers ?

 

[Allen_C_Sharp]

This is just another joke from UOB, they should have published the news on 01Apr, more suitable...

 

[Spk307]

i guess the reason they opted for a debit card could be a non compete agreement that SQ has with Amex for a KF branded credit card.
Else why would UOB forego the 1% they earn on every cc transaction? Debit cards get less than 0.5% I think.
I don't agree that they went for debit card to intentionally reduce fraud protection cover for customers.

 

[elnewbie]

The product team is quite smart, hook some gullible customers, meet first year targets, collect bonus, update LinkedIn profiles and then move on to the next banking job. Next time I get a job like this, will also design a similar product.

 

[sgdividends]

I don't agree that they went for debit card to intentionally reduce fraud protection cover for customers.

Looking from a consumer point of view ..It's more risky

 

[mikezuper]

The product team is quite smart, hook some gullible customers, meet first year targets, collect bonus, update LinkedIn profiles and then move on to the next banking job. Next time I get a job like this, will also design a similar product.

Ya lor, like OCBC360.

But they forget, the majority of millennials are those who know how.

Perhaps the only bet is to get it hooked and forgotten about it seeing how happy they are clocking the miles quickly.

Those who are savvy enough will work harder to maximize their return.

 

[dahnoob]

Update:

I did drop by an UOB branch this morning, asking about the promotion. They told me that they don't know if I will be the first 50000 customers, even though it was only 2 hours after launch. I am not going to take any risks and walked off. On a side note, it seems that nobody is happy with their product in this thread :|

Someone mentioned a 1% pa EIR, I'd like to point out that there are 4mpd cards available. You're really earning only 1.4mpd above what you would normally earn, for majority of the transactions out there. All in all, the 5% earn cap on your balance along with 0% interest rate disgusts me.

 

[elnewbie]

That 1.4mpd extra only is for those who have 350k stuck in the account without interest. And it's only for the first $3240 spending per month.

A really crap product.

Update:

I did drop by an UOB branch this morning, asking about the promotion. They told me that they don't know if I will be the first 50000 customers, even though it was only 2 hours after launch. I am not going to take any risks and walked off. On a side note, it seems that nobody is happy with their product in this thread :|

Someone mentioned a 1% pa EIR, I'd like to point out that there are 4mpd cards available. You're really earning only 1.4mpd above what you would normally earn, for majority of the transactions out there. All in all, the 5% earn cap on your balance along with 0% interest rate disgusts me.

 

[Trazora]

That 1.4mpd extra only is for those who have 350k stuck in the account without interest. And it's only for the first $3240 spending per month.

A really crap product.

The 5% cap is for the bonus miles. So should be cap for $3500 spending

 

[h0neystars]

I was initially very attracted to the launch of this card as I am constantly on the lookout for ways to earn more krisflyer miles but after reading all the fine prints, i agree with everyone - this card doesn't make sense at all.

Well, it could make sense to you if you are:

- Not eligible for Credit Cards (students, less than $30k per annum salary)
- People that can maintain monthly $3000 account balance
- People that can spend $500/month (exclusive of AXS, EZ Link Payment)
- You prefer Krisflyer Miles to Cashback Rebates

I did a calculation analysis of the card if you are interested:

http://www.flyhoneystars.com/2017/04/19/is-krisflyer-uob-debit-card-attractive-at-all/

 

[sgdividends]

Well, it could make sense to you if you are:

- Not eligible for Credit Cards (students, less than $30k per annum salary)
- People that can maintain monthly $3000 account balance
- People that can spend $500/month (exclusive of AXS, EZ Link Payment)
- You prefer Krisflyer Miles to Cashback Rebates

Different point of view with you. When i was earning low then and unqualified for a cc, i applied for a secured card by just putting in a deposit ( no interest earned similar to this UOB account). I think the market rate now is $10000 deposit but im not sure if possible to get lower like 5k.

With this secured cc, you lock in $10k only, you can earn 4mpd easily, dont need to hit $100,000 like in this account, no interest, to just earn 3.4 mpd.

There is a flawed product...a fake product..no seriously..a fake product...sad

Sorry Ms Tan, got to disagree with your product like how u disagreed with me years ago

 

[continuum]

I did a calculation analysis of the card if you are interested:

http://www.flyhoneystars.com/2017/04/19/is-krisflyer-uob-debit-card-attractive-at-all/

I disagree with your calculation because you didn't take into account how long it takes to accummulate enough miles to redeem a business class ticket, let alone a "good" long haul business class one (this is the real deal, not the regional seats). Miles rarely appreciate in value; they depreciate. So it's not advisable to keep it for years.

 

[h0neystars]

I disagree with your calculation because you didn't take into account how long it takes to accummulate enough miles to redeem a business class ticket, let alone a "good" long haul business class one (this is the real deal, not the regional seats). Miles rarely appreciate in value; they depreciate. So it's not advisable to keep it for years.

True. i forgot to mention the validity of Krisflyer miles - which is 3 years.

Anyway, I calculated that it will take up to 35.71 months for me to receive 50,000 miles with monthly spend of $1000 + bank balance of $20k.

Also, I am currently awaiting UOB's response on whether there are any admin or processing charges for the conversion of miles or will it be automatic like AMEX's krisflyer card.

anyone aware about this?

 

[sgdividends]

True. i forgot to mention the validity of Krisflyer miles - which is 3 years.

Anyway, I calculated that it will take up to 35.71 months for me to receive 50,000 miles with monthly spend of $1000 + bank balance of $20k.

Also, I am currently awaiting UOB's response on whether there are any admin or processing charges for the conversion of miles or will it be automatic like AMEX's krisflyer card.

anyone aware about this?

I thought one forumner mentioned it's auto conversion , free

With a 10k secured CC,monthly spend 1k,need only 12.5 months to hit 50000 miles. Need $ 25 redemption fee from points to miles

 

[rVn_mUfC]

Uob living up to my expectation