There are currently 3 digital banks in Singapore available to retail customers, with MariBank being the latest to launch its services, as well as GXS Bank and Trust Bank.
These digital banks offer better interest rates, compounded daily, compared to traditional banks. On top of it, most do not have any minimum balance requirements for the savings accounts as well as any fees for not maintaining a certain amount of funds.
Here is a comparison of the different digital banks.
Comparison of Digital Banks
| Account | Trust Bank Savings account | GXS Savings account | Mari Savings account |
| Base interest rate | 1.5% (Up to $75k) 0.5% (Above $75k) | 2.5% | |
| Bonus interest rate | For non-union members: Additional 0.5% with 5 eligible purchase done with the Trust card (up to $75k) For union members: Additional 1% with 5 eligible purchase done with the Trust NTUC Link card (up to $75k) | Earn | Nil |
| Maximum deposit | Nil | $75k | $75k |
| ATM Withdrawals | At Trust/Standard Chartered ATMs using the Trust card that comes with the account | Nil | Nil |
| Ability to use PayNow and FAST | Yes | Yes | Yes |
| Minimum initial deposit, monthly balance, monthly fees? | None | None | None |
| Who can sign up? | At least 18 years old | At least 16 years old with a Singpass MyInfo account | Singaporeans and PRs that are at least 18 years old |
What are digital banks?
Digital Banks are banks that operate entirely online, as opposed to traditional banks that have physical branches. Instead, users manage their banking with digital banks through an app. You would still be able to call through the hotline if there are any difficulties faced anytime 24/7.
Full Bank license vs Digital Full Bank license
GXS Bank (by Grab and SingTel) and MariBank (by Sea group) were awarded the Digital Full Bank license in December 2020 by the MAS. They are granted the license based on the following factors: (obtained from the MAS website)
- Applicant’s value proposition of business model
- ability to manage a prudent and sustainable digital banking business; and
- growth prospects and other contributions to Singapore’s financial centre
These banks have restrictions for the first two years as to how much they could take in deposits, which is capped at $50 million as well as having a paid-up capital of $15 million.
This is why these two banks have capped the amount of deposits they would receive as well as roll out their services on an invite-only basis.
Another digital bank in Singapore is Trust Bank. It is also operated online-only and it is supported by Standard Chartered and FairPrice Group. However, unlike the other two digital banks mentioned above, Trust Bank is awarded the Full Bank License which allows it to operate similarly to how a traditional bank would.
Hence, unlike other digital banks in Singapore, it is able to offer ATM cash withdrawal services and does not have a cap on the deposits it can take on.
Deposits in all of these banks are protected under the Singapore Deposit Insurance Corporation’s (SDIC) Deposit Insurance (DI) Scheme since they are part of it. The SDIC insures deposits of up to S$75k should a member bank or finance company fails, which is the same protection a traditional bank offers.
Trust Bank
Trust Bank is digital bank backed by Standard Charterd and FairPrice Group. Some product offerings of Trust Bank is the savings account, the Trust card which functions both as a debit card and a credit card and a family personal accident insurance.
Trust Bank savings account
The Trust Bank savings account gives a base interest rate of 1.5% on deposits. However, if you meet the mimimum number of card purchases, you would get a bonus interest on the deposit.
You can track how many card spends you need to complete to get the bonus interest as well as the interest rate you are earning at in the money tab.
On top of that, the app has a rewards tab where you are able to check how much Linkpoints you currently have, make use of coupons at merchants as well as earn stamp cards where you can exchange for a reward.
Trust Bank cards
Trust Bank offers the Trust Link card (non-members) and the Trust NTUC Link card (NTUC Union members) which are both VISA Signature cards. It comes with the savings account and this card offers dual functionality as a credit and a debit card. There are no annual fees associated with this card as well as any foreign transaction fees, making it a good card to be used overseas.
The card that I got was the Trust Link Card (that blue card for non-members). Unlike the usual white coloured envelope you would get for the physical cards, Trust Bank’s was of the cheerful tone.
As for the card, it is numberless. You can refer to the Trust Bank app in order to get the card information. The physical card can either be activated in the app by keying in the code or by scanning the card with an NFC enabled phone (which was what I did).
Besides this, the Trust Bank cards offers savings of up to 21% (with Trust NTUC Link credit card) when you hit the minimum spend. The savings are given in the form of NTUC Linkpoints which can be used in places operated by FairPrice Group such as FairPrice supermarkets and Kopitiam.
Moreover, you can earn stamp cards when you pay with the Trust card in certain places. For example, currently there is a Kopitiam stamp card where I would earn 1 stamp per day if I spend at Kopitiam with the Trust card (no minimum spend). I would be able to redeem for a free Hot Kopi/Teh when I accumulate 4 stamps.
Family Personal Accident Insurance
Trust Bank also offers an insurance plan for its users which covers up to $8000 for death and permanent total disability for $0.50 per month. It can be cancelled anytime if you do not wish to continue.
Sign Up Gifts
Currently, Trust Bank is offering a $25 FairPrice eVoucher when you sign up for an account with them make your first payment with the Trust Card. Get an additional $10 FairPrice eVoucher when you sign up using my referral code, V4859EJ3. These vouchers do not have any minimum spending required.
GXS Bank
GXS Bank is a digital bank by Grab and Singtel. GXS Bank currently offers two products, GXS Savings account that gives relatively high interest at 3.48% (Savings pocket) and the GXS FlexiLoan, which was recently introduced.
While the GXS bank app can be downloaded, you might not be able to apply for an account with GXS as it is currently on an invite only basis.
It will roll out its bank services progressively to consumers, starting with selected employees and underbanked customers that uses Grab or Singtel.
GXS Savings account
The GXS Savings account gives a simple 0.08% p.a. (2.38% p.a. wef August 17 2023) base interest when you leave it in the main account. However, if you create a savings pocket and deposit your money into it from your main account, you would be able to earn 3.48% p.a. (2.68% p.a. wef August 17 2023) instead. These returns are also credited to your account daily, allowing you to earn compound interest.
Unfortunately, the GXS savings account only allows a maximum deposit of $75k, including the savings pockets. Therefore, while you will not be able to deposit more if your GXS account reaches $75k, you will still be able to earn interest beyond the $75k limit.
In terms of the app interface, it is one of the easiest to use as well as eye pleasing in my opinion. Top functions of a banking app is easily seen in the home page, such as the total deposit in the bank, transactions, transferring money and its other products.
Spending with GXS
While GXS does not has a bank card yet or any ATM Withdrawal facility, you are able to link your GXS account to your Grab and SingTel Dash account. It can be used to top up Grab and SingTel Dash e-wallet. Moreover, if you pay for Grab Services using the GXS account, you would earn more GrabReward points.
Currently, there is a promotion whereby you will get 2500 points in the respective Grab and SingTel Dash rewards when you link your account to both apps.
GXS Debit Card
Update: GXS now has a debit card which you can earn rewards on eligible transactions with a minimum spend of S$10. There are 3 different designs to choose from. I chose the dark purple version of the card.
Rewards are cashback of randomised amounts, up to S$5.
GXS FlexiLoan
GXS FlexiLoan allows users to borrow money, starting from $200 and up to 10 active loans at a time. Users have to be a Singaporean or PR of an age of at least 21 years old and have an income to $20k to apply for the account. There are no fees for prepayment, processing, late fees or paying early. However, it charges prevailing interest on the loans and for late payments, a late interest is also applied from the third day the payments are overdue. Interest is also calculated daily on a non-compounding basis, hence you will enjoy interest savings if you pay early. Here is the FAQ for GXS Flexi-Loan.
You can use the loan calculator in the GXS app to get a guage of the payment of the loans.
MariBank
MariBank is a digital bank by Sea group. It currently offers the Mari Savings account which yields 2.5% 2.88% (Promotional rate) interest p.a.
Interest is credited and compounded daily.
Similar to GXS, MariBank is also on an invite-only basis where only selected users would be able to sign up for a Mari Savings account. Those are mainly users who are part of the Sea Group’s ecosystem such as Shopee customers and sellers.
In terms of the app experience, the app has a Shopee theme, with the app having the same colour of orange as Shopee. But it is relatively easy to use too, with top functions such as transactions, transfers, payments and the amount in the bank all together in the home page.
Thoughts
Digital banks, especially GXS and MariBank, are good places to store emergency funds as these accounts allow you to earn high interest rates without needing to do anything such as achieving card spends or to lock the money in a fixed deposit. Moreover, these banks are covered under the SDIC DI scheme, making the capital safe.
As for Trust Bank, its card is useful for spending within the FairPrice Group where one would be able to save a substantial amount if they meet the criteria. It also has various coupons and promotions in the app when you use the Trust Card to pay at certain merchants, which helps accumulate spendings outside FairPrice Group to meet its spending criteria for cashback (in the form of Linkpoints) on purchases in FairPrice Group.
Disclaimer: Any views or opinions represented in this post are personal and being solely to me and do not represent those of people, institutions or organisations that I may or may not be associated with in professional or personal capacity, unless explicitly stated. Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. None of the information here constitutes personal financial advice. Thank you for supporting my site!
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