Beat the GST Hike With OCBC 360 Account With Up to 7.65% a Year

The GST hike is here to stay. Find out how you can cushion the impact by earning a high fixed deposit rate, protecting yourself and reducing expenses!

Since the start of the year, I’m sure many of us have felt the impact of the 1% GST hike. Be it when you go grocery shopping, indulge in retail therapy or dine out at your favourite restaurants, the 1% increase has proven to be quite painful on the ol' credit cards and wallet. 

While we can’t change reality, how we manage our finances is crucial in helping to cushion the increase in spending. Coupled with inflation and a looming recession, staying on top of our finances is more important than ever.

Not sure how you can cope with the GST hike? Here are some solutions to reduce spending, earn high interest on the best fixed deposit rate and safeguard against unnecessary spending. 

Table of Contents

1. Apply for a high-yield savings account

2. Park your funds into a fixed deposit account

3. Use cashback cards to earn cash rebates

4. Purchase suitable medical insurance

5. Maximise savings with cashback platforms and promo codes  

6. Invest for the long-term

7. Exclusive interest rates 

1. Apply for a high-yield savings account

One of the surefire ways to lock in more savings would be to open a high-yield savings account to earn interest. But of course, not all savings accounts that offer high interest would be your cup of tea. You’ll have to select wisely based on your spending habits and lifestyle to maximise the interest you can earn. 

Tip: signing up for an OCBC’s 360 account can earn you up to 7.65% a year on your savings.

Some savings accounts reward only those with a large bank balance or even penalise you when you hit a maximum cap, while others require you to jump through many hoops just to earn substantial interest.

Cue the all-rounded 360 account that rewards you on all fronts, up to a whopping 7.65% a year. Not only does it have many criteria available for you to fulfil and stack bonus interest, but it is also the only account that rewards you for saving! This makes it excellent primary savings account to stash your emergency funds.

There are several categories you can hit to earn bonus interest:

• Salary (up to 2.50% a year) — credit your salary of at least S$1,800 through GIRO
• Save (up to 1.50% a year) — increase your average daily balance by at least S$500 month
• Spend (up to 0.60% a year) — charge at least S$500 to selected OCBC credit cards each month
• Insure (up to 1.50% a year) — purchase an eligible insurance product from OCBC
• Invest (up to 1.50% a year) — purchase an eligible investment product from OCBC
• Grow (up to 2.40% a year) — maintain an average daily balance of at least S$200,000

Since bonus interest pillars are independent of each other, you don’t have to hit all categories to qualify for bonus interest. If you save and spend S$500 every month, you can still earn a decent interest of 1.85% a year — perfect for freelancers or the self-employed who don’t credit their salary.

Click here for more information. Terms and conditions, fees and charges apply.

See also: Best Savings Accounts In Singapore To Stash Your Cash (2023)

2. Park your funds into a fixed deposit account

In this high-interest climate, placing your funds into a fixed deposit account might be a good idea for your money to work harder for you. The best thing is, you don’t even need to do anything — just make sure you don’t touch your funds during the tenure period and enjoy the fruits of your labour after the tenure ends.

OCBC is offering an promotional rate if you apply via internet banking:

See also: 14 Best Fixed Deposit Rates in Singapore to Lock in Your Savings

3. Use cashback cards to earn cash rebates

If you’re someone who prefers instant gratification instead of chasing miles, cashback cards are a great way to earn instant cashback to offset your purchases. And don’t underestimate the power of cashback — in today’s high-interest environment, you can earn a pretty decent sum!

In addition to OCBC's fixed deposit rates, smart spending can also go a long way. With a minimum spend of S$800 per month and a cashback cap of S$80, the OCBC 365 credit card is a strong contender for cashback credit cards because of its attractive cashback rates:

• 5% on dining — local and overseas dining, online food delivery
• 3% on groceries — local and overseas groceries, online groceries
• 3% on land transport — bus and train rides (eg. SimplyGo), local and overseas private hire rides (e.g.Grab, Gojek and TADA)
• 6% on petrol — fuel spend at all petrol service stations, up to 22.1% fuel savings at Caltex, up to 20.2% fuel savings at Esso
• 3% on utilities — recurring telco bills, recurring electricity bills

If you spend a minimum of S$500 a month, you’ll also be able to earn bonus interest of 0.6% a year on your OCBC 360 savings account! That’s essentially up to S$50 bonus interest a year!

See also: The Only Credit Card Guide You Need in Singapore 2023

4. Purchase suitable medical insurance

While expenditure increases because of the 1% GST hike, let’s not forget that our medical expenses are also subjected to the GST increase. When you fall sick, your medical bill also increases and might amount to a relatively huge sum if you require extensive medical care.

Many of us are always thinking of ways to earn money to cover the GST hike but fail to realise that safeguarding ourselves from large spending like medical bills is equally, or if not, even more important.

This is why purchasing medical insurance to suit your needs is still extremely important to serve as a financial safety net for you. You may think the occasional trip down to your neighbourhood GP may not cost much, but in the event you meet with something more serious like a critical illness, you’ll thank your past self for buying a medical insurance policy with sufficient coverage to cushion your expenses.

Depending on your needs, you should cover the basics — hospitalisation, personal accident, critical illness and life insurance. As a general rule of thumb, many financial advisors advise that you spend no more than 10% of your take-home salary on insurance premiums.

Check out the list of available insurance from OCBC here

See also: Best Insurance Plans in Singapore

5. Maximise savings with cashback platforms and promo codes  

Slash your spending by taking advantage of promo codes, discounts, deals and cashback platforms. If you’re an OCBC member, be sure to browse through their merchant promotions to score big on savings when you spend on dining, groceries, food deliveries, staycations and more.

Look out for sign-up deals and promotions for credit cards too! SingSaver has attractive rewards for you when you’re a new-to-bank member signing up for a credit card, ranging from KrisFlyer miles to Dyson Supersonic!

See also: 8 Ways to Earn More Cashback on Credit Cards, Shopping

Rake up savings with 360 savings account

OCBC 360 savings account is your best bet at hedging inflation and curbing the recent GST hike. Offering up to 7.65% a year on your savings, it has many categories that you can qualify for to earn bonus interest.

Here are the categories:

Here’s how you can take advantage of the bonus interest:

• Salary + Save: Up to a maximum EIR of 4.05% a year
• Salary + Save + Spend: Up to a maximum EIR of 4.65% a year
• Salary + Save + Spend + Insure/Invest: Up to a maximum EIR of 6.15% a year Salary + Save + Spend + Insure + Invest: Up to a maximum EIR of 7.65% a year.

There’s also an interest calculator available for you to find out exactly how much interest you can earn.

How to sign up?

Head over to OCBC’s website and apply online. You’ll need to be of 18 years of age, and prepare these documents:

• NRIC for Singaporeans and Singapore PRs
• Passport and a valid pass (eg Employment Pass (EP) or S-Pass or Student Pass) for foreigners
• Any one of the following documents that show your residential address
  • Phone bill
  • Half-yearly CPF statement
  • Any bank statement

This article is written in partnership with OCBC.

Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Retirement Sum Scheme are aggregated and separately insured up to S$75,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

”Investments are subject to investment risks, including the possible loss of the principal amount invested.  

This is for general information and does not take into account your particular investment and protection aims, financial situation or needs. You should seek advice from a financial adviser before committing to a purchase. Otherwise, you should consider the suitability of the product.

Insurance policies are underwritten by the relevant entity in Great Eastern and are not bank deposits or obligations of, or guaranteed by OCBC Bank. Protected up to specified limits by SDIC. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Before you make an investment, please seek advice from your Relationship Manager regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs. If you choose not to do so, you should consider if the investment product is suitable for you, and conduct your own assessments and due diligence on the investment product.

Read these next:
Best Savings Accounts In Singapore To Stash Your Cash (2023)
14 Best Fixed Deposit Rates in Singapore to Lock in Your Savings
What You Should Know About GST Increase 2023
8 Lifestyle Changes You Can Make To Better Cope With Inflation
A Singaporean's Money-Saving Guide To Stop Overspending