SINGAPORE - Singapore’s digital retail banking scene is set to sizzle as players fight to roll out their offerings with GXS Bank firing the first salvo.
Interest will be credited to the account with every one cent earned.
For a start, GXS Bank customers can deposit up to only $5,000 into the savings account and earn daily interest of 0.08 per cent per annum.
Traditional lenders’ savings accounts typically give out interest on a monthly or quarterly basis, usually only at the end of the month.Backed by Grab and Singtel, the digital bank, which is allowed to serve retail and corporate clients, on Wednesday (Aug 31) unveiled its first financial product - the GXS Savings Account.
To encourage users to save, it will not require a minimum sum as traditional lenders do and will offer an interest to be earned daily.
If a customer wants to save up for specific purposes such as for studies or a vacation, they can create up to eight savings pockets under the GXS account. Each pocket fund can earn daily interest of up to 1.58 per cent per annum.
In recent months, local banks have raised interests rates to woo customers on the back of a rising rate environment, with OCBC the latest lender to do so.
“There are high headline rates for a lot of banking accounts but to achieve that you need to spend on credit cards, buy their insurance products, you need to have a payroll account. We do not have such conditions,” said GXS’ chief executive Charles Wong.
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