GXS offers 2.68% interest rate. Should you try Grab's digital bank?

What happened?

GXS Bank (GXS) has opened up the GXS Savings Account to all eligible individuals in Singapore.

This means that you will now be able to open up an account with GXS Bank, even if you were not able to get on the waitlist when it launched in Singapore last year. 

More importantly, GXS has also increased the maximum deposit amount for the GXS Savings Account to S$75,000 per account from S$5,000 previously.

Customers with GXS can set up different Savings Pockets for their savings goals, and earn 3.48% per annum in interest currently. 

If you have not heard about the GXS Savings Account, let’s find out if this is a savings account that is worth considering.

What is the GXS Savings Account?

The GXS Savings Account is a savings account offered by GXS, one of the digital banks licensed by the Monetary Authority of Singapore (MAS). 

GXS  is backed by a consortium consisting of Grab Holdings and Singtel. In case you’re still wondering, this explains its name GXS (or Grab x Singtel).

Since its launch in August 2022, all available GXS savings account slots were taken up within months. 

According to the company, the waitlist registration for the GXS Savings Account has also grown by more than 2.5 times since March 2023. 

Earlier this year, GXS also started offering GXS FlexiLoan, the first unsecured term loan amongst banks in Singapore. 

This allows customers to pay off their loan partially or in full without any early repayment fees and with the additional benefit of saving on interest payments. 

GXS also plans to offer its own debit card in the coming months. 

What is the interest rate on the GXS Savings Account?

There was much excitement after GXS initially raised the deposit limit for the GXS Savings Account, and dangled an attractive interest rate of 3.48% per annum (p.a.).

With a surge in demand for new accounts, all GXS Savings Account slots were quickly taken up within a few days and subsequent applicants had to be put on a waitlist. 

However, less than a month later, GXS announced that it will be adjusting the interest rate offered on the GXS savings account, with the interest rate for the Saving Pocket cut to 2.68% p.a.

With the latest adjustment, GXS will also be increasing the interest rate for its Main Account to 2.38% p.a. from 0.08% p.a.

These changes to the GXS interest rate will take effect from 17 August 2023. According to GXS, there are no other changes to the GXS Savings Account. 

It might also be worthwhile knowing that GXS credits interest to your account daily. This means that you do not have to worry about losing out on the interest if you need to withdraw your savings at any point in time. 

How does GXS compare to MariBank and Trust Bank?

In case you’re wondering how does GXS compare to Trust Bank and MariBank, I've compiled them in the table below.

What users may not like about GXS

#1 – Account limit of S$75,000

The GXS Savings account is only taking in a maximum deposit of S$75,000 per account currently. 

This means that even if you have a lot of savings, you will only be able to enjoy the interest rate of 3.48% p.a. up to S$75,000 of deposits. 

To find out which other savings accounts allow you to earn a higher interest rate on your savings, check out our guide to the best savings account in Singapore. 

#2 - Limited functions currently

As a newly launched digital bank, the functions that are available for customers are still fairly limited.

For example, you will not be able to deposit or withdraw cash from your savings account through any ATM in Singapore. 

You will also not be able to set up GIRO arrangements to debit funds from your account to pay for your bills.

The full terms and conditions can be found here. 

Is the GXS Savings Account safe?

GXS holds a banking license issued by the Monetary Authority of Singapore. 

As shared earlier, it is backed by two names many of us are familiar with – Grab and Singtel.

Also, all deposits in GXS will be fully covered by the Singapore Deposit Insurance Corporation (SDIC) up to S$75,000 per account.

Final verdict on GXS 

The GXS Savings Account allows you to earn an interest rate of 2.68% p.a. in a fuss-free way. You just make sure your money is in the Savings Pockets rather than the Main Account.

However, you will be able to earn this interest rate for only up to S$75,000 of deposits with GXS.

Also, as a newly launched digital bank, there are limited functions available to customers currently. 

For those looking for signup rewards, unfortunately there are no freebies given unlike those offered by Trust Bank.

The interest rate offered is also lower than that offered by some other accounts such as Maribank that do not require you to jump through any hoops.

Learn more about the best savings account that offer you the highest interest rate here. 

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