United Overseas Bank (UOB) will lower the interest rates on its One Account starting 1 May, becoming the second local bank to do so after OCBC adjusted its rates last week, Channel News Asia reported.

The revisions come as banks respond to changing market conditions and expectations that global interest rates will soften in the coming months.

UOB said the move reflects the long-term interest rate outlook, though it has kept its bonus interest criteria and balance cap unchanged.

Under the new structure, customers with up to S$150,000 in their One Account who credit their salary and spend at least S$500 monthly on eligible UOB cards will earn between 2.3% and 5.3% interest.

The maximum effective rate will drop to 3.3%, down from the current 4%.

OCBC’s changes, also effective 1 May, will lower the maximum effective rate on its 360 account from 7.65% to 6.3% for customers who fulfil various requirements such as salary crediting, spending, and investing or purchasing insurance through the bank.

DBS has not announced any revisions to its flagship Multiplier account, which currently offers up to 4.1% interest on the first S$100,000 in deposits.

To qualify, customers must credit their salary and transact in three banking categories with a total monthly transaction volume of at least S$30,000.

Analysts say more banks may follow suit, especially as the US Federal Reserve is expected to continue cutting rates this year.

Phillip Securities’ Elijah Lee noted that once one major bank adjusts its rates, others typically follow due to competition for customer deposits.

He also advised customers to carefully assess whether switching accounts would be beneficial, given the possibility of further changes in interest rates.

Market volatility and concerns over US economic policy—particularly trade tariffs—are also contributing to the outlook for lower interest rates.

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