Are you contemplating a fresh savings account in Singapore?

You might have noticed GXS Bank’s rising prominence. Initially, GXS Bank appeared less enticing due to its S$5,000 deposit cap and restricted client base. But the tables have turned, making the GXS Savings Account a viable contender.

This exhaustive review unravels GXS Bank’s appeal and scrutinizes whether you should transition to their savings account.

Introduction: The GXS Bank Phenomenon

GXS Bank, a digital banking endeavour by Grab Holdings Inc. and Singtel, secured a full banking license from the Monetary Authority of Singapore (MAS) in December 2020. Initially, the savings account catered exclusively to selected Grab and Singtel customers. But it’s now within reach for all eligible Singaporeans.

Unveiling the GXS Savings Account

The GXS Savings Account, launched by GXS Bank last year, had an initial regulatory cap on retail deposits. This restricted the bank’s services to select customers with a maximum deposit limit of S$5,000 per user. However, the cap is no more. The GXS Savings Account now offers an attractive 3.48% per annum interest rate through its “Savings Pockets” feature.

Key Features of GXS Bank

1. High-Interest Rates

The GXS Savings Account’s key attraction is its high-interest rate of 3.48% per annum. This interest compounds daily, paving the way for higher returns and effortless earnings. No more fretting about potential losses if you need to dip into your savings!

2. No Minimum Balance & Lock-in Period

With no stipulations on a minimum account balance or lock-in period, GXS Bank invites everyone to join. This freedom allows you to access your funds anytime, devoid of penalties.

3. Hassle-Free Earnings

Ditch the complexity with GXS Bank! There’s no need for salary crediting, GIRO arrangements, bill payments, or credit card spending. You can concentrate on saving without jumping through additional hoops.

4. Transparent Interest Calculation

Unlike traditional banks, GXS Bank doesn’t adopt tiered interest levels. This transparency allows you to earn a uniform interest rate on your entire savings balance, providing clarity on your interest accumulation.

Issues with GXS: What Might Dissuade You

While the GXS Savings Account offers many benefits, some restrictions warrant attention:

1. Account limit of S$75,000

The GXS Savings Account caps deposits at S$75,000 per account. If your savings exceed this amount, the excess won’t benefit from the attractive interest rate.

2. Limited functions and benefits

As a nascent digital bank, GXS Bank offers limited services. For instance, ATM deposits and withdrawals for your savings account in Singapore are not supported. Setting up GIRO arrangements for automatic bill payments is also unavailable currently. However, GXS Bank’s upcoming benefits and functions will likely rectify this.

3. Absence of a referral program

Unlike many other banks, GXS Bank lacks a referral program offering additional benefits. This absence might disappoint those who enjoy rewards for referring others to open accounts.

GXS Savings Account Interest Rate: How Does It Compare?

GXS Bank’s 3.48% per annum interest rate is remarkable. Compared to digital competitor Trust Bank’s rates of 2% per annum for non-union members and 2.5% per annum for union members, GXS takes the lead. GXS Bank’s interest rate also outshines other fixed deposits offering rates from 2.9% to 3.88%, often with minimum sums and lock-in periods.

The FMS Verdict on GXS Savings Account

The GXS Savings Account emerges as a compelling option, particularly for fresh graduates and young working adults. With high-interest rates and a hassle-free experience, it’s a great choice for those who find minimum spending requirements on credit cards challenging.

Furthermore, the GXS Savings Account provides a secure harbour for short-term emergency funds without compromising interest. If you have plans to invest in stocks or options, it could serve as a reliable investment war chest.

While GXS Bank’s functions are limited currently, they have ambitious expansion plans. They’re preparing to launch a debit card with rewards and cashback benefits, alongside more enticing rewards programs.

In conclusion, GXS Bank and its GXS Savings Account are worth considering if you’re exploring new savings account options. With the competition intensifying, it’ll be intriguing to see how traditional banks respond to this digital bank’s growing popularity!

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More FMS Resources

As you navigate the evolving landscape of digital banking, you might want to consider learning more about GXS Bank’s innovative offerings. The launch of the GXS Savings Account is just one aspect of a broader trend of digital disruption in the banking sector.

Our detailed write-up on the GXS Bank Digital Banking Revolution offers an in-depth analysis of the rise of digital banking and GXS Bank’s role in this revolution. It’s essential reading for anyone seeking to understand the digital shift and how to adapt their financial strategies accordingly.

Other FMS Resources

  1. Learn how to choose an investment brokerage in Singapore
  2. Discover how to build passive income
  3. Unlock your passive income for retirement

External Resources

  1. Learn more about Digital Banking in Singapore
  2. Check out how other banks compare
  3. Learn more about savings accounts

Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

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