Business

UOB offers new bank account that earns KrisFlyer miles

UOB offers new bank account that earns KrisFlyer miles
From left: Mr Tan Kai Ping, Senior Vice President, Marketing Planning, Singapore Airlines; Ms Jacquelyn Tan, Head of Personal Financial Services Singapore, UOB; Mr Goh Choon Phong, CEO Singapore Airlines; Mr Wee Ee Cheong, Deputy Chairman and CEO, UOB. Photo: UOB
Published: 6:55 PM, April 18, 2017
Updated: 11:51 PM, April 18, 2017

SINGAPORE — A new United Overseas Bank (UOB) current account will allow customers to earn KrisFlyer air miles when they spend on their linked KrisFlyer UOB debit card.

The KrisFlyer UOB account allows customers who prefer to spend on a debit card or who are in the early stages of their careers and may not be eligible for a credit card to accumulate KrisFlyer miles, the bank and KrisFlyer said in a joint press release on Tuesday (April 18).

Customers can use the KrisFlyer miles they earn for award flights and upgrades on Singapore Airlines and SilkAir, or for travel vouchers on Scoot and Tigerair. They will also be able to enjoy complimentary privileges when they travel with the latter two airlines.

For example, 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 will earn 16,800 KrisFlyer miles, which can be redeemed for award flights on Singapore Airlines or SilkAir to Bali, Langkawi, or Lombok.

“We have seen spend on UOB debit cards grow 40 per cent over the past two years. Travel spend on debit cards also increased 15 per cent in the corresponding period as our customers make more trips abroad,” said Ms Jacquelyn Tan, UOB’s head of personal financial services in Singapore.

According to UOB, travel accounted for 22 per cent of all spending made on UOB credit and debit cards in 2016, with 37 per cent spent on flights. Close to two-thirds of the total spending on flights were on flights under the Singapore Airlines group.

The rate of mileage accrual will depend on the account balance of customers. For instance, customers with between S$3,000 and S$100,000 in their accounts earn 1.4 miles for each dollar spent using their KrisFlyer UOB debit cards, while at the other end of the spectrum, those with at least S$350,000 in their accounts earn 5.4 miles for every dollar spent.

Customers need to spend a minimum of S$500 dollars per calendar month to earn miles on their spending.