With the GXS savings account interest rate to be lowered to 2.68% per annum from 17 August, we look for other savings accounts that allow our cash to work harder without jumping through hoops.
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.
With the reduction in interest rate for the savings pockets, many in the Beansprout community who had recently set up a GXS savings account started asking what are some other savings accounts that can offer a higher interest rate.
As such, we decided to share three savings accounts that allow you to make your savings work harder without jumping through any hoops.
3 savings accounts offering a higher interest rate
#1 – CIMB FastSaver – Interest rate of up to 3.50% p.a. for new customers or fresh funds for existing customers
CIMB FastSaver is running a promotion for new-to-bank customers, where you will be able to enjoy an interest rate of 3.50% p.a. for the first 6 calendar months after account opening.
To enjoy the promotion, you will have to open an account by 30th September 2023.
Existing customers also enjoy the promotional interest rate of 3.50% p.a. on their incremental fresh funds balance for the first 6 calendar months starting from 1 Aug '23 to 31 Jan '24.
If you are not familiar with the CIMB FastSaver Account, it is a fuss-free savings account which allows you to earn a decent interest rate with very few requirements.
You will simply require a minimum deposit of S$1,000, and maintain or increase your month-end balance to enjoy the promotion.
Unlike the S$75,000 cap for the GXS Savings Account, there is no deposit cap for the CIMB FastSaver Account.
Outside of the promotion, the CIMB FastSaver Account offers a base interest of 1.50% p.a. on the first S$25,000 of deposits for existing customers. The tiered interest rate rises to as high as 3.50% p.a. on balances of up to $75,000.
#2 – Standard Chartered eSaver Account – Interest rate of up to 3.40% for fresh funds
The Standard Chartered eSaver (e$aver) account is offering a promotional interest rate of 3.4% p.a. for fresh funds deposited into the savings account.
However, do note that you will only earn the bonus interest rate during the promotional period through 30th September 2023.
The Standard Chartered eSaver account is a relatively fuss-free account with few requirements. You will require a minimum average daily balance of S$1,000.
More importantly, you would need to make sure that your deposits are considered “fresh funds” to qualify for the bonus interest rates.
Fresh funds here refer to funds that do not originate from any existing account with Standard Chartered.
#3 – UOB Stash Account – Effective interest rate of up to 3.0% p.a.
If you prefer to park your savings with a local bank, the UOB Stash Account offers a base interest rate of 0.05% p.a., and a bonus interest rate of up to 4.95% p.a.
To earn the bonus interest rate, you will need to fulfil two criteria
- Have more than S$10,000 in your monthly account balance and;
- Maintain or increase the account balance from last month’s balance.
Compared to the CIMB FastSaver and Standard Chartered eSaver account, the calculation of the effective interest rate earned on the UOB Stash Account is more complicated as you will earn a different interest rate for different deposit tiers.
We break down the effective interest rate earned on the UOB Stash Account in the table below.
With the tiered interest rate that offers an interest rate of 5% for the portion of your monthly average balance between S$70,000 and S$100,000, you would be able to earn a maximum effective interest rate of 3% p.a. with deposits of S$100,000.
However, if your deposit amount is lower at S$75,000, then you will just be earning an effective interest rate of 2.34% p.a..
|Cash available for deposit||UOB Stash Account maximum effective interest rate (EIR)|
More than $10,000
Less than $40,000
|Up to 1.51%|
More than $40,000
Less than $70,000
Up to 2.15%
More than $70,000
Less than $100,000
Up to 3.00%
|Source: Beansprout calculation using data from UOB website as of 7 August 2023|
What would Beansprout do?
Like you, we’re constantly on the look-out for the best savings account to park our hard earned cash.
With the interest rate on the GXS Savings Account to be cut to 2.68% p.a. from 17 August 2023, we can consider the CIMB FastSaver, Standard Chartered eSaver, and UOB Stash accounts to earn a higher interest rate on our savings in a fuss-free way.
For those who are able to fulfil certain requirements such as depositing your salary, you can also consider other savings accounts that offer an higher interest rate of up to 7.88% p.a.
If you are comfortable with locking up your savings for a longer period of time, the best fixed deposit account is now offering an interest rate of 3.55% p.a. for a 9-month deposit.
Check out our Interest Maximiser Tool to find out which account allows you to earn the highest interest on your savings.
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