Executive Summary

Singapore’s digital banking scene has seen significant activity recently, with various banks adjusting their interest rates and introducing new promotions. Forum discussions on HardwareZone reveal a community actively seeking the best deals, often comparing rates across different platforms. Notably, interest rates have generally decreased across several digital banks, prompting users to explore alternatives like fixed deposits and T-bills. Promotional periods and eligibility criteria have also been a major point of discussion.

The community has highlighted the importance of understanding the fine print of promotions, particularly the “first xxxx customers” clauses, and the need for accurate reward crediting. There is a clear desire for transparency and reliability in digital banking services. Several users shared their experiences, both positive and negative, with a focus on maximizing returns while minimizing risks. A user mentions that he has already earned more than *SGD 850* in interest since last year, demonstrating the potential benefits of these services.

Key Developments

Interest Rate Adjustments

Several digital banks have recently adjusted their interest rates, often downwards. GXS Bank, for instance, saw its 3-month fixed deposit rate drop from 3.28% to 3.18%****. This trend has been a common concern among users.

“gxs drop the interest rate for 3mths from 3.28 to 3.18% liao. Can’t sustain. Many online banks dropped rates already.” –
DBS also revised their fixed deposit rates, eliminating the previously offered *3.2%. OCBC also followed suit, cutting their online fixed deposit rate from 3.2%* to 2.45%****. These changes have led users to actively seek alternative options for higher returns.

Promotional Offers & Eligibility

Digital banks have been launching various promotional offers, often with specific eligibility criteria. Maribank, for example, offered a promotion with up to *SGD 48 reward for holding a certain balance, but only for the first 10,000 customers*.

“Saw the notification on my app, auto close it when I read ‘The first 10,000 Eligible Customers’.” –
The community has expressed frustration with these limited-time offers and the uncertainty of being among the eligible customers. A user highlighted that the Maribank promotion requires fresh money deposits and that the average daily balance must be higher than the previous balance. Many users are also wary of the various conditions and requirements needed to qualify for these promotions.

Fixed Deposit & T-bill Comparisons

With the decrease in digital bank interest rates, many users have started exploring fixed deposits (FDs) and T-bills as alternatives. Singapore Finance (SIF) offered a 6-month FD at 2.6%* plus a SGD 60 cash credit, effectively yielding around 2.8%* p.a. Maybank, on the other hand, has been cited as having a 2-year FD at 3.8%*, with upfront interest leading to an effective interest rate (EIR) of 4.1%***.

“This is effectively 2.8%, you may have been better off with the 6 months Tbills today which yielded 3.08%.” –
The discussion also touched on arbitrage opportunities, where banks earn the difference between what they pay for FDs and what they earn from T-bills. These comparisons reflect a growing awareness of diverse investment options among users. RHB has also increased their FD rates, including a new 18-month option at 3%****, in an attempt to match the highest FD rates offered by other banks.

Community Insights

User Experiences

Users have shared a range of experiences, both positive and negative. Some have reported successfully receiving promotional rewards, while others have faced issues with missing referral bonuses.

“The previous promo I received such an notification too and at the end, bonus units were credited within the time stated in the T&C” –
However, some users have reported inconsistencies with reward crediting:

“I didn’t get my referral rewards when my friend referred me and same goes to when i refer others. Satisfying all their criteria.” –
There are also concerns about the accuracy of interest distribution, with one user hoping that interest distribution is accurate. Another user mentioned that they contacted customer service about missing rewards but did not receive a reply after a week.

Tips and Recommendations

Based on community discussions, here are some practical tips:

• Read the fine print: Carefully review the terms and conditions of all promotions, especially the eligibility criteria and deadlines.
• Verify reward crediting: Monitor your account closely to ensure all rewards and interest are credited correctly.
• Consider alternatives: Explore fixed deposits and T-bills as alternatives to digital bank savings accounts, especially if rates drop.
• Diversify your options: Don’t rely solely on one digital bank; consider multiple platforms to maximize returns and minimize risk.
• Link Mari account to Shopee: For the Mari credit card, ensure you link your Mari account to your Shopee account for cashback. Do not use the add credit card option.
• Use FAST Payee for Trust card: For paying Trust credit card, use FAST payee instead of the normal payment method for instant reflection.
• Keep track of daily interest: As some apps may show incorrect maturity amounts, it is essential to keep track of daily interest credits.

These recommendations aim to help users make informed decisions and avoid potential pitfalls.

Important Considerations

• SDIC Coverage: Ensure that the digital bank is covered by the Singapore Deposit Insurance Corporation (SDIC) for deposits up to *SGD 100,000* for peace of mind.
• Promotional Periods: Be aware of promotional periods and deadlines, as many offers are time-sensitive. The Mari credit card 5% cashback promo will end on 1st Jan 2025.
• “First xxxx customers” Clauses: Understand that many promotions are limited to the first specified number of customers, and there’s no guarantee of eligibility.
• Fraud Risk: Be vigilant against fraud, as some users have reported issues with their credit cards. A user reported that their wife’s new credit card was immediately hit by fraud.
• Minimum Deposit: Some accounts have minimum deposit requirements to avoid fees, so be sure to check these details.
• Regulatory Compliance: Ensure that the bank is regulated by the Monetary Authority of Singapore (MAS).

These considerations are crucial for safeguarding your funds and making informed decisions.

Looking Ahead

The digital banking landscape in Singapore is dynamic, with continuous changes and updates. Community members are anticipating further adjustments to interest rates and new promotional offers. There is also an expectation that local banks may start offering fixed deposits using CPF funds again in January or February.

Users are closely watching for announcements from banks regarding new rates, especially after the recent decreases. The community also anticipates new promotions during the Chinese New Year (CNY) period.

“If don’t have Jan likely would have because of CNY. Jan should have because SA close.” –
The general expectation is that competition among digital banks will continue, resulting in more options for consumers. However, users should remain vigilant and stay informed to make the best financial decisions.