GXS offers fuss-free 3.48% 2.68% interest on your savings, is there a catch?

[Update] The party is over before it started for most. With effect from 17th Aug, GXS Bank’s Savings Account rate will be revised to 2.68% instead.

GXS Bank is a digital bank formed from a joint venture between Singtel and Grab. GXS has opened its Savings Account to new customers as of 19 July 2023. Prior to this, only those who were on the waitlist were entitled to opening an account with GXS Bank. 

But what really caught everyone’s attention is that GXS Bank’s Savings Account offers a fuss-free high interest rate of 3.48% p.a. (will be revised to 2.68% as of 17 Aug 23) on deposits of up to S$75,000. This rate comes with no lock-in period, minimum deposit and no other criteria.

Is GXS the best savings account in Singapore now? 

Obviously, GXS’ 3.48% is significantly higher than other options like CPF (2.5%) and the Singapore Savings Bonds (2.99% currently).

I did a quick comparison across the banks in Singapore: 

Best Bank Interest Rates in Singapore?

Bank	Interest Rate Range	Requirements to enjoy higher interest rates	Max deposit to enjoy benefits
CIMB	3.5%	New customers who open an account by 30 Sep 2023, Min deposit $1k. This rate lasts for the 6 calendar months after account opening.	S$100k
GXS Bank	2.38% – 3.48% (as of 17th Aug, rate will be 2.68%)	No hurdles	S$75k
Trust Bank	1.5% – 2.5%	NTUC Union member 5 purchases	S$75k
DBS	0.05% – 4.10%	Salary/dividend/SGFinDex + banking categories	S$100k
OCBC	0.05% – 7.65%	Salary + Save + Spend + Insure + Invest	S$100k
UOB	0.05% – 7.8%	Min Salary crediting, min card spending and GIRO debits	S$100k

There isn’t an apple-to-apple comparison for the best savings accounts given that the 3 local banks offer hurdle accounts (that come with a list of criteria for even higher interest rates). You may or may not be able to unlock the full rates of hurdle accounts, depending on your financial situation.

And that makes GXS’ offer very tantalizing due to its simplicity and higher interest rate.

How to get 3.45% 2.68% from GXS Bank?

1. Creating an account with GXS Bank
2. Fund your Main Account (PayNow or Bank Transfer)
3. Sign up for a “Savings Pocket” to receive the 3.48% interest rate
4. Transfer your cash from the Main Account to the Savings Pocket

GXS Bank’s “Savings Pockets” are like savings goals. You can set up each Pocket for a specific financial goal and use them like individual saving jars. 

Do take note that cash left in the Main Account will only accrue a base interest rate of 0.08% 2.38%. Think of this like any bank’s base savings account rate – nothing to be excited about.

Advantages of GXS Bank’s Savings Account

Fuss Free

To unlock the full 3.45% 2.68%, other than the need to create a separate “Savings Pocket”, there isn’t any other conditions:

• No need to maintain a minimum deposit amount, 
• No fall under fees to deal with, 
• No salary crediting needed
• No minimum spend
• No investment needed
• No insurance needed
• No lock-in period

Just set up an account and a savings pocket.

Interest Rate paid out Daily

This means that your savings are truly liquid. You can enjoy the high 3.45% 2.68% on your idling cash, and get to withdraw it when you need to, without having to worry about the monthly payout.

Also, you can see this daily amount reflected in your GXS Bank App, which would definitely be gratifying to monitor frequently if you max out the savings limit of $75,000.

Disadvantages of GXS Bank’s Savings Account

Join the Queue

Those who are already on Grab or SingTel Dash’s waitlist will be receiving their invitation to open an account in batches. For the rest of us, we’ll need to join a waiting list to open an account. You can do so by downloading the GXS app.

It will take a while before you can create your GXS bank account. However, given the popularity, I don’t think it would take too long. 

This could be because of the $50 million deposit limit imposed on new digital banks.

While there are rumors that the $50 million deposit limit may be raised to accommodate more customers, you may need to wait.

Limited functionality

As a newly launched digital bank, GXS doesn’t have a credit or debit card yet (although those are already in the works). Other than its Savings Account, it only offers the GXS FlexiLoan, and the ability to spend your funds via Grab or Dash.

While it will definitely expand its function in the future, you may want to think twice if you want to use your GXS account for day-to-day banking purposes.

No branches or ATM

GXS is a digital bank, so you’ll need to use the GXS App to manage your funds. 

While this shouldn’t pose too much of an issue for the younger generation, the older folks might need some hand holding to get used to a digital bank. 

Would you move your money to GXS For 3.48% 2.68%?

[update] I guess this is no longer a valid question, now that the savings rate has been revised to 2.68% with effect from 17th Aug 2023.

GXS Bank’s savings account offers a high-interest rate of 3.48% rate of 2.68% without any lock-in or minimum deposit, making it an attractive option for those seeking higher returns on their savings. 

However, due to high demand, the saving account slots are currently full and interested customers need to join a waiting list.

Would you be moving your money to GXS Bank for the attractive interest rate?

Frequently Asked Questions

Is GXS Bank safe to use?

GXS Bank is a joint venture between SingTel and Grab, and the second digital bank to be launched in Singapore, after Trust Bank. 

GXS Bank was granted the full digital bank license by the Monetary Authority of Singapore in December 2020.

Also, its current deposit limit per customer is set at S$75,000, which is also the limit that is insured by SDIC. This should give you a peace of mind regarding your deposited funds, even in the unlikely scenario where the bank fails.

What is the interest rate for GXS Bank? 

GXS’ interest rate for its savings pocket is currently at 3.48% 2.68% p.a., with effect from 17 Aug 2023. Interest is credited daily to your GXS Savings Account. However, do note that cash in your GXS Main Account is only entitled to a base rate of 0.8%.

How many Savings Pockets can I open in GXS?

You can open up to 8 Savings Pockets.

But you can only deposit up to S$75,000 in total, across all Pockets plus your Main Account.

What is deposit limit for GXS Savings Account?

Each account has a maximum deposit cap of S$75,000.

GXS had mentioned that they are working to raise the limits. But in the meantime, you’ll also earn interest on any amounts above $75,000. Which means if you deposit the max amount in one go, you’ll start earning on your capital + interest from day 2.

Can I open multiple Savings Account?

I know what you’re plotting. But no, you cannot open multiple accounts. According to GXS’ T&C, you can only open 1 GXS Savings Account in your own name.

How to fund your GXS Savings Account?

You can fund your GXS Savings account via PayNow or bank transfer.

Remember to create a Savings Pocket and shift your money from your Main Account into the Pocket to enjoy the 3.48% 2.68%!