GXS Financial institution is providing 3.48%! Do you have to rush to deposit?


When GXS Financial institution launched late final 12 months, there was little incentive to enroll as a result of the deposits had been restricted to solely $5,000. Nonetheless, now that GXS has raised the deposit cap to $75,000, is it price switching over?

The quick reply is – sure – particularly in case you’re searching for a financial savings account that has the next options:

  • presents a lovely 3.48% p.a. rate of interest in your money
  • no want to take care of a minimal stability
  • no lock-in interval
  • no hoops to leap by way of for greater curiosity i.e. no wage crediting / GIRO / invoice funds / bank card spend wanted
  • no tiered curiosity
Picture credit: Christopher How
Observe how the curiosity is utilized out of your very first greenback to the final, as a substitute of the same old tiered curiosity ranges that we’ve seen the native banks go for.

With the above options, these of you who’re uninterested in having to leap by way of hoops to earn your bonus curiosity can try GXS for a fuss-free various.

Who’s GXS?

GXS is the brand new child on the block – a digital financial institution owned by Seize and Singtel – and acquired their license from the Financial Authority of Singapore (MAS) in December 2020. It launched its financial savings account late final 12 months, however as a result of GXS had a $50 million regulatory cap on retail deposits imposed by MAS in the course of the lender’ first two years of operation to safeguard customers’ pursuits, it needed to restrict to solely chosen Seize / Singtel prospects and a most of $5,000 per consumer.

The GXS’ financial savings account at present presents an rate of interest of three.48% a 12 months on “Financial savings Pockets” (a function that jogs my memory of Hugo’s Cash Pots). Whereas I think about this may very well be lowered in time to return – particularly if the Fed begins ceasing its rate of interest hikes – , it nonetheless doesn’t cease us from milking the great charges whereas it lasts.

No, I’ve but to resolve whether or not I need to go for Lasik.

What’s extra, one other game-changer is that GXS credit your curiosity each day, as in comparison with each month. This lets us profit from an excellent greater (and sooner) price of compounding because you’re incomes curiosity on curiosity – plus, you’ll be able to really feel shiok on daily basis while you log in and see “free cash” being credited into your account 😛

Within the coming months, GXS has stated they can even be launching a debit card with rewards and cashback to entice prospects to spend by way of their financial savings account. Those that spend with GXS on Seize and Singtel (consists of Singtel Sprint) can even get bonus factors, though the small print on GXS reward program continues to be scarce at this level.

Find out how to get entry?

In case you’re questioning how to enroll, all it is advisable do is to obtain the GXS app and register. Slots are on a first-come-first-served foundation, and there’s no referral code for now.

Observe that you simply’ll need to be a minimum of 16 years previous to be eligible, and signing up is a mere matter of minutes (you’ll want your cellular quantity, SingPass and e-mail).

You may then fund your account both by way of PayNow (every particular person can solely have 2 financial institution accounts for PayNow – 1 linked to your NRIC/FIN and one other linked to your cellular quantity) or by direct financial institution switch. I opted for the latter, and acquired the cash throughout the identical minute.

Be sure to transfer your cash out of your Fundamental Account and into your Financial savings Pockets to be able to get the three.48% p.a. curiosity!

Is it price switching to GXS?

I can hardly consider people who would not profit from GXS proper now.

Since most of us have already got greater than 1 financial institution financial savings account, there’s actually nothing stopping you from signing up for an additional one – until you discover it too troublesome to handle your money in a number of totally different locations.

In any other case, 3.48% p.a. credited each day is an actual game-changer. Right here’s the way it stacks up towards the opposite choices I might in any other case take into account for placing my money in proper now:

  • vs. different digital banks: GXS 3.48% p.a. is greater than Belief Financial institution’s 2% (non-union members) and a pair of.5% (union members) p.a. rate of interest
  • vs. mounted deposits: at 3.48% with zero lock-up interval, this beats all the opposite mounted deposits proper now (whose charges vary from 2.9% – 3.88% with minimal sums and lock-in intervals).
  • vs. MAS T-bills: the most recent tranche got here in at 3.85% p.a. for six months. In case you missed that, otherwise you’re not a fan of locking your cash up for six months, then GXS’ can be a extra preferable choice.
  • vs. money administration accounts: the charges are comparable or barely decrease, however the distinction is that your deposits at GXS are insured by SDIC (whereas money administration accounts are NOT insured by SDIC). Money administration merchandise like MoneyOwl’s Clever Saver (4%) or POEMS (>4%) are nonetheless a legitimate consideration for folk with money to spare, so I embody them right here despite the fact that it isn’t an apple-to-apple comparability or an equal product.
As a skeptic, I examined out by transferring $10 first to verify the quantity went by way of appropriately, earlier than transferring the entire meant sum. I additionally examined out the withdrawal perform, as a result of the very last thing any of us would need (whereas pursuing excessive curiosity) is to have our cash caught, is not it!

What ought to I exploit GXS for?

With the engaging 3.48% p.a. curiosity proper now and the dearth of hoops to leap by way of, I might say GXS is amongst the best option for contemporary graduates and younger working adults proper now – particularly for folk who battle to hit the minimal spend requirement on their playing cards.

By way of funds, it’s also possible to park your short-term emergency funds right here (e.g. 3-6 months) for liquidity with out sacrificing curiosity, and even your funding war-chest whereas ready for alternatives within the inventory or choices market.

Don’t overlook, GXS Financial savings Pockets function additionally makes it an ideal match so that you can put your short-term financial savings right here, akin to funds that you simply’re saving up for an upcoming buy e.g. marriage ceremony, residence renovation, a brand new furnishings, and so forth.

However earlier than you rush to open a GXS account in your aged dad and mom, do be aware that GXS continues to be a comparatively new financial institution in any case, and since transactions are largely on-line, it’s possible you’ll not need to be further diligent for scams and malware that might acquire entry to your telephone and liquidate your funds. On this sense, the native banks have stricter rip-off controls in place.

Will YOU be placing your cash into GXS?

The battle is on – let’s see how the native banks reply from right here!