Complete Guide to GXS Bank Savings Account

16 April 2024

In today's fast-paced digital banking arena, GXS Bank stands out as a trailblazer, born from a formidable collaboration between Singtel and Grab. Together, they've launched the GXS Bank Savings Account in Singapore, an innovative offering that sets a new benchmark in digital banking. 

The GXS Savings Account is not just another savings option; it's a product of innovative collaboration aimed at redefining the banking experience for the modern consumer. And one of its standout features is the daily interest credit feature, allowing account holders to benefit from the daily compounding interest. This unique feature ensures customers never miss out on accruing interest, offering flexibility and peace of mind, especially for those needing sudden access to funds.

So, is the GXS Savings Account worth the wait, especially since the slots tend to be quickly taken up? Sure, you can secure early access to new slots by registering via the GXS app, but are the potential convenience and benefits of this account worth the anticipation?

Whether you're new to digital banking or seeking to optimise your financial management, we explore the GXS Bank Savings Account in detail—after all, it could be a crucial step in maximising your savings potential.

Overview of the GXS Savings Account

We get it; something as simple as banking today can, at times, feel like a maze of rules and requirements. 

But not with the GXS Savings Account—a breath of fresh air, no doubt. 

Functioning like a throwback to the good old days of simple, no-nonsense savings accounts, with a GXS Savings Account, all you'll have to do is park your money and watch it grow without having to jump through hoops or meet a bunch of conditions. 

Yes, you read that right: no need for monthly spending targets, the minimum number of GIRO transactions, buying insurance, or even getting a certain amount of your salary deposited when payday comes around.

And here's the fun part: the interest rates are pretty competitive, too, ranging from 2.38% to 2.68% per annum (p.a.). That's on par with or even better than what you'd get from traditional banks, and here's the kicker— you earn interest every single day, not just at the end of the month or year! It's like getting a little cash bonus in your account every morning. 

And guess what? No pesky fees, no minimum deposits, and definitely no worries about falling below a certain balance.

But wait, there's more! Your deposits are safe and sound with the GXS Savings Account. This is because both your Main Account and Savings Pockets will be protected by the Singapore Deposit Insurance Corporation (SDIC) for up to S$75,000. So, while you enjoy the perks of a modern digital savings account, you can rest easy knowing that your hard-earned cash is well-protected.

GXS Savings Account interest rates and how they work

As mentioned, the GXS Savings Account brings a fresh twist to earning interest on your savings, shaking up the norm with daily interest credits instead of the typical monthly payouts. 

Here's how it works: With the Main Account, you get a cool 2.38% per annum interest rate, while the Savings Pockets enjoy a slightly higher rate of 2.68% per annum. So, every day, you see your savings grow, thanks to the magic of daily compounding interest.

Account TypInterest Rate Per AnnumInterest Compounding
Main Account2.38%Daily
Saving Pockets2.68%Daily

Now, when it comes to the interest on the GXS Savings Account, it is calculated based on the total balance across both your Main Account and any Savings Pockets. 

It's pretty straightforward: they take your daily balance, multiply it by the annual interest rate, and then divide it by 365 days (you know, the number of days in a year). This way, interest keeps adding up every single day on your total balance. Once your accumulated interest reaches at least S$0.01, it gets credited to your account, seamlessly boosting your balance.

Here's an example using the Savings Pockets. 

Say you have S$20,000 in your Savings Pocket on 26 February 2024. With an annual interest rate of 2.68%, your daily interest calculation would look something like this: (S$20,000 * 2.68%)/365 = S$1.46849. This amount represents your accrued interest for that day. Then, on the morning of 27 February 2024, S$1.46 (rounded down to the nearest cent for crediting) gets added to your account, bringing your new balance to S$20,001.46. The remaining bit, in this case, S$0.00849, continues to grow and will be included in the next day's interest calculation.

Maximising returns

So, how do you make the most out of the fixed rates offered by the GXS Savings account? Consider these easy-to-follow strategies to maximise your returns:

  • Balance Optimisation: It's all about finding the right balance between your Main Account and Savings Pockets. Since Savings Pockets offer a slightly higher interest rate of 2.68% p.a. compared to the Main Account's 2.38% p.a., consider keeping more of your savings in the Savings Pockets, especially since you have the freedom to create and name as many Savings Pockets as you desire, with no restrictions on the number.
  • Daily Interest Advantage: With interest credited daily, it's important to keep your account funded throughout the month. Even small, regular deposits can add up thanks to the daily compounding effect.

Looking for Better Returns?

Looking for a simple yet effective strategy that matches your financial goals? 

That's where StashAway comes in, offering a clear path with its cool line-up of products: Simple, Simple Plus, and Simple Guaranteed

At the core of StashAway's offerings is simplicity, making earning on your savings a breeze. Take StashAway Simple™ Guaranteed, for example, which offers a straightforward approach to guaranteed returns on your investments of up to  3.75% p.a..

StashAway Simple Guaranteed Interest Rates:

TenureInterest rate per annum
1 month3.5%
3 months3.75%
6 months3.6%
12 months3.5%

Eligibility and account opening

Convinced that the GXS Bank Savings Account is the right fit for your financial needs? 

Here’s what you need to know to embark on your journey with GXS Bank.

Eligibility Criteria:

To be eligible for a GXS Savings Account, you need to:

  • Be at least 16 years old.
  • Have a residential address in Singapore.
  • Hold a valid visa, such as a Dependant’s Pass (DP), Employment Pass (EP), or Work Permit.
  • Possess a Singpass Myinfo account.

Account Opening Process:

Opening your GXS Savings Account is a breeze once new slots are available. 

Simply follow these steps:

  1. Download the GXS Bank App: Available on both iOS and Android, the GXS Bank app is your gateway to digital banking with GXS Bank.
  2. Launch the App: Upon launching the app, you’ll be guided through the registration process. 
  3. Verification: If additional documentation is needed, GXS Bank will contact you via email or app notifications.
  4. Approval and Activation: Once your documents have been reviewed and approved, your GXS Savings Account will be set up and ready for use.

GXS Savings Account: Its benefits

So, what do you stand to gain once you open a GXS Savings Account? Here's a quick summary:

  • Straightforward Interest Earnings: Enjoy competitive interest rates ranging from 2.38% to 2.68% annually without the need for monthly spend minimums, GIRO transactions, insurance plan purchases, or salary crediting. 
  • Savings Pockets for Goal Tracking: Utilise the innovative Savings Pockets feature to create and name multiple "pockets" for different savings goals. This simplifies goal setting and budgeting by allowing for easy tracking and management of funds designated for specific purposes.
  • SDIC Protection: Rest assured knowing your deposits, up to S$75,000, are safeguarded by the SDIC, offering the same level of protection as traditional banks. 

GXS Savings Account: Its limitations

Now, while the GXS Savings Account boasts a suite of attractive features, including competitive interest rates and daily interest crediting, it's essential to recognise that every financial product comes with its limitations—and the same applies to the GXS Savings Account.

One notable limitation of the GXS Savings Account is the cap on the maximum account balance.

Currently, the account only accommodates deposits up to S$75,000. This ceiling means that savers with the capacity to deposit more are restricted from earning the appealing interest rate of up to 2.68% p.a. on amounts exceeding this threshold. 

Consequently, while the GXS Savings Account can be an excellent choice for your first S$75,000, those looking to maximise returns on larger sums so that they can save up for retirement, for example, may find this limit somewhat constraining.

So, what are your alternatives if this high-yield savings account just doesn't fit the bill, especially if you plan on saving more?

Making a comparison: StashAway Simple™ Guaranteed vs Digital Bank Savings Accounts

In the evolving world of digital banking and investment, making the right choice to grow your savings involves comparing your options across the board. 

As mentioned, StashAway's Simple™ Guaranteed presents a direct and secure approach to earning on your savings, offering guaranteed returns without the complexity of conditions tied to interest rates. But how does this contrast with the rates offered by digital bank savings accounts like the GXS Savings Account and the emerging MariBank by Sea?

To weigh your options, here's a simplified table comparing the interest rate structure of StashAway's Simple™ Guaranteed with the savings accounts of GXS Bank and MariBank:

FeatureStashAway Simple™ GuaranteedGXS Savings AccountMari Savings Account
Interest rateGuaranteed rate up to  3.75% p.a.Up to 2.68% p.a. (Up to S$75,000)2.88% p.a. (Promotional rate until 30 June 2024). Prevailing base rate of 2.50% p.a. shall apply thereafter.
Key requirementsNone; fixed rate for chosen tenorNoneNone
Minimum balanceNo minimumNo minimumNo minimum
Management feeNoneNoneNone
Interest creditingMonthlyDailyDaily
Lock-in periodYes, based on chosen tenor (1, 3, 6, 12 months)No lock-insNo lock-ins

Embarking on the journey to financial well-being? Choosing the perfect savings account is a big deal! 

The GXS Savings Account, as discussed, definitely has some cool perks like easy interest earnings and daily interest crediting. But no product is perfect, right? Keep in mind that there are caps on deposits and some other limits that might not suit everyone's savings groove.

But if you're contemplating between long- and short-term investments and are on the hunt for something beyond the usual banking scene, StashAway has your back. 

The decision is in your hands now. Dive into your financial goals, carefully evaluate the advantages and drawbacks of each choice, and select the option that resonates with you the most. Keep in mind that there's no one-size-fits-all solution for savings—what works best varies from person to person.

Need a hand figuring it all out? Connect with our expert advisors today and begin crafting a financial roadmap tailored to your individual aspirations.

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