My relationship with UOB was forged when I started my investment journey. My first brokerage was UOB Kay Hian and hence having a UOB Uniplus account was a natural choice then. Subsequently, I linked my CPFIS account with them and eventually applied for UOB One account.

In general, banking with them has been smooth sailing though there were occasional hiccups along the way. The latest hiccup was not getting the promotional fixed deposit rate. The reason given to me was that the placement was not done with fresh fund. And that is simply due to me transferring the fresh fund from my Uniplus account to One Account before I made my placement. So the system is not able to determine that as fresh fund! I was really amazed by how “good” the system was! His only solution is to end the fixed deposit premature and make a new placement with fresh fund again at a branch!

Given the recent long queue at the bank for its fixed deposit promotional rate, I really dread to waste my time on this matter. But it just does not make sense not to end the placement prematurely to take advantage of better rate. Nope, not the new fixed deposit promotional rate but the yield for 6-month T-bill! I finally make my first purchase of T-bill over UOB internet banking recently and am delighted that the latest yield is at 3.3%!

With the recent rate hikes, I do think that the yield is going to stay above 3% for some time. So why queue up and get a 2.6% rate with fund locked in for 12 months when I can get a higher yield for a shorter period at the comfort of my home?

I had been applying for Singapore Saving Bonds for a few months and will be going to a final placement for Singapore Saving Bonds. While the next month’s rate of 2.75% is lower that the 6-month T-bill, this rate is locked in for longer term and there is no withdrawal penalty.

The final transaction with UOB this month is to purchase the counter! With the recent price weakness, its historical annual dividend of $1.20 would give me a yield of 4.4%. With the higher rate, the banks are getting tailwind for its NIM. The recent acquisition of Citigroup’s Indonesia, Malaysia, Thailand and Vietnam consumers banking accounts should serve it well in the mid term. Finally, its recent attraction of deposits might have a positive impact on its earning and balance sheet. So there is high likelihood that it can at least maintain its dividend.

That’s how my relationship with UOB has grown over the years. Going forward, I might apply for Wealth Banking relationship so that I do not need to wait for them to call me back.