GXS Savings Account: Earn up to 3.28% p.a. interest with Boost Pocket

What happened?

When I shared the best ways to earn a higher yield on our cash last month, I received a comment that the GXS Savings Account is worth looking into as well. 

After all, GXS recently launched Boost Pocket, which allows us to earn an interest rate of up to 3.28% p.a. over 3 months.

This would make it one of the highest interest rates across savings accounts and fixed deposits currently. 

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

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. 

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. 

What is the interest rate on the GXS Savings Account?

The Savings Account consists of the Main Account, Saving Pockets and the newly added Boost Pocket.

The GXS Savings Pockets offers an interest rate of 2.68% p.a.

The Main Account offers an interest rate of 2.38% p.a. 

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. 

What is the interest rate on the GXS Boost Pocket?

GXS Bank (GXS) has recently launched a Boost Pocket to help GXS Savings Account customers grow their savings faster.

This allows customers with a GXS Savings Account to open a Boost Pocket through the GXS App. 

The Boost Pocket carries a base interest rate of 2.38% p.a., which is credited daily. 

Unlike the Saving Pockets and Main Account, it also has a bonus interest rate of 0.7% p.a. or 0.9% p.a. that will be applied if the Boost Pocket is held to the 1 month or 3 months maturity respectively.

This means that you can earn an interest rate of up to 3.28% p.a. for 3 months through the GXS Boost Pocket.

No penalty will be charged if funds are withdrawn before maturity and you will still earn the base interest rate of 2.38% p.a. up till the withdrawal date.

If you want to retain your savings in the Boost Pocket for an extended period, you can opt to roll it over for the same duration at the current interest rate applicable at the time of extension. 

Funds in the Boost Pocket will automatically be transferred back to the Main Account once matured if not extended.

GXS customers have the flexibility to extend or withdraw their Boost Pocket at any time while it remains active.

Customers can fund the Boost Pocket with any amount from S$100 to S$30,000. 

You can open up to two Boost Pockets. This means that you can fund a maximum total of S$60,000 across two Boost Pockets.

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 promotional interest rate 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.

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

With the new Boost Pocket, you can earn an interest rate of up to 3.28% p.a. over a 3-month period. This is better than the best 3-month fixed deposit rate in Singapore currently. 

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

To find out which savings account allows your money to work harder, check out our guide to the best savings account with highest interest rates in Singapore 

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