Digital Bank? What is a digital bank, you may ask…
A simple take of what Digital Bank is: A Digital Bank offers the same type of banking services as a traditional bank except it operates entirely online without any single physical infrastructure, such as a bank branch.
To some who do not know, in the late 2022s, there are 2 digital banks which have established their presence in the banking world. Most notably, GXS Bank and Trust Bank which have no minimum balance and attractive interest rates that accrue daily!
How Safe are Digital Banks?
To the skeptics of digital banks, Digital banks also have the same deposit protection as traditional banks. They too are part of the Singapore Deposit Insurance Corporation’s (SDIC) Deposit Insurance (DI) Scheme.
Under the DI Scheme, if any of the member bank or finance company fails, all of the insured deposits are insured up to S$75,000 by the SDIC. The digital banks listed in this article have met all relevant requirements and licensing preconditions before MAS grants them their respective banking licenses. Thus, rest assured.
TL;DR: Best Digital Bank Accounts (2022)
First, let’s talk about Trust Bank. It is a digital bank backed by Standard Chartered and FairPrice Group.
- Download “Trust Bank SG“
- Use our referral code – F09VXCHE (you gotta type it out)
- Sign Up through Savings Account (Savings Account will be instant)
- There you go, a $10 NTUC Voucher in your Rewards (Coupons)
- Click here to find out how to get the extra $25 NTUC voucher!
Trust Bank Savings Account Interest Rates
The interest in Trust Savings Account is accrued daily and credited at the end of the month.
Benefits of Trust Bank
- No minimum balance required.
- Regulated by Singapore Deposit Insurance Corporation (SDIC) up to $75,000
- Savings Account: Base 1% interest on the first $50,000 of deposits
- Security Feature – ‘Lock’ your card if it is misplaced
Founded by Grab and Singtel, GXS Bank is one of the first 2 digital banks to be serving retail customers.
While we can download the GXS digital bank app now, you won’t be able to use it just yet as the service is currently by invite only.
As of the time of writing, my account has yet to be approved by GXS Bank. As mentioned, the bank’s services will be rolled out progressively to consumers starting with selected employees and underbanked customers within the GXS, Grab and Singtel ecosystem. Hence, this might take a while so do take note.
GXS currently offers a savings account as its sole product. However, they offer some pretty attractive interest rates with future benefits when you spend on Grab and Singtel Dash.
GXS Savings Account Interest Rates
The best part is these returns are credited to your account daily so you can take advantage of compound interest.
Benefits of GXS Savings Account
- No minimum balance required.
- Singapore Deposit Insurance Corporation (SDIC) up to $75,000
- Withdraw any time from the Savings Pocket
- No Fees
Should You Consider Opening An Account with A Digital Bank?
Simple answer, yes. If you own a savings account with a traditional bank, definitely.
What do you think is the first thing all of us will look?
Without a doubt, interest rates offered.
GXS offers interest up to 3.48% while Trust Bank offers up to 2.5%.
Honestly, GXS Bank and Trust Bank offer pretty competitive interest rates compared to the realistic interest Seedly has set out. I personally believe that digital banks are great secondary accounts you can take advantage of. Ultimately, we personally think that Trust Bank is the superior one at the time of writing given how majority of the people are able to use it compared to GXS Bank.
In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank Referral, Standard Chartered Credit Card Deals and Putting together a Financial plan for 2023.
Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalized investment advice. Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.