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Singapore Banks Step Up Scam Defenses From Oct 15

From October 15, Singapore’s biggest banks will roll out new safeguards on digital transactions to protect customers from increasingly sophisticated scams. The move comes just weeks after the Singapore Police Force announced that 15 individuals would be charged for suspected roles in scam-related money mule activities. Twelve men and three women, aged between 18 and 35, were arrested in connection with scams ranging from impersonation and job fraud to e-commerce cons and loan schemes, with total losses exceeding S$8.8 million.

Image Credits: unsplash.com

Scams are not slowing down. They have grown more aggressive and more convincing, making it difficult even for savvy customers to tell a legitimate transaction from a fraudulent one. In response, banks are stepping in to close the gaps with stronger protections.

WHAT YOU SHOULD KNOW

DBS, OCBC, UOB, Citibank, HSBC, Maybank and Standard Chartered will enforce stricter rules on digital banking starting October 15. The safeguards apply to current and savings accounts, including joint accounts, with balances of at least S$50,000. If a transaction causes more than half of an account’s funds to be withdrawn within 24 hours, the safeguard is triggered. That transaction and any that follow will either be held for 24 hours or rejected outright. This pause gives victims a vital window to cancel the transfer if they realize they have been scammed.

These measures apply only to digital banking channels such as mobile apps and internet banking, while cash withdrawals at branches and ATMs remain unaffected. The Association of Banks in Singapore, which announced the move on October 3, has cautioned that customers may experience delays in legitimate digital payments and transfers, particularly for large or time-sensitive transactions like property purchases or stock trades. Customers are advised to plan such transfers ahead of time to avoid unexpected costs.

Image Credits: unsplash.com

While the new rules may cause some inconvenience, the scam cases highlight why they are necessary. Security measures already in place prevented an estimated S$78 million in scam losses during the first seven months of this year. Singapore’s financial system is not immune to the global wave of scams, but it has chosen to act decisively. Customers may have to trade a little convenience for peace of mind, and in the fight against scams, that trade-off may well be worth it.

Sources: 1,2, & 3

Singapore banks are phasing out Singdollar checks and here’s what you need to know

There’s a major shift happening in the world of Singapore banking and it’s all to do with our trusty Singdollar checks.

Here’s the scoop.

Starting this November, some of the biggest banks are going to start charging for Singdollar checks and more.

In fact, our local trio of DBS, OCBC, and UOB are already asking for a S$0.75 fee every time you issue or deposit a corporate check.

Maybank is doing things a bit differently now—they’re only charging for issuing checks, at the same S$0.75 fee per check. But if you hold certain accounts with them, you can enjoy up to 30 free checks a month.

But hang onto your hats, because there’s more.

DBS revealed that from 1 November 2023, they will be applying check processing charges to all Singdollar and local US dollar checks, whether they’re issued or deposited.

They’re keeping us in suspense about the details, but promise to give us more info as we get closer to November.

UOB is following a similar path, introducing charges for both Singdollar and US dollar checks. But they’re playing it cool, rolling out these fees “in phases” from November.

OCBC and Maybank are keeping things under wraps for now, but they’ve said they will spill the beans about charges in due time.

Image Credits: reuters.com

And here’s another big news: by the end of 2025, corporate checks will be a thing of the past in Singapore.

Individuals will still be able to use checks for a while longer, but we don’t have an official end date just yet.

This all comes after a public consultation conducted by MAS last year, suggesting a roadmap to phase out checks in Singapore. The use of checks has been steadily declining, thanks to the rise of e-payments among both companies and individuals.

Also, the cost of processing checks has been increasing and is expected to rise even further by 2025.

Until now, most banks have been absorbing these costs, but that’s not sustainable. Hence, they will start passing these costs onto us, the customers.

It’s not all bad news, though.

The goal is to usher in a new era of electronic deferred payment (EDP) solutions, allowing users to make deferred payments or issue a cashier’s order, without needing a physical check.

After the EDP solution is rolled out in 2025, banks will stop issuing new checkbooks to corporates. This will give businesses more time to transition to the EDP solution and other alternative payment methods.

For individuals who are still using checks, don’t worry. You will have a longer time to switch to alternative payment methods like PayNow, FAST, and GIRO.

So, if you’re one of the few who still prefers checks, it’s time to start familiarizing yourself with digital payment options.

The future is here, and it’s digital for sure.

Best Savings Accounts For Kids In Singapore

One most vital roles of parents are teaching their children about finances and success. Instilling in children the concepts of earning, saving, and investing is essential in developing life skills that they can use in the future.

Opening a bank account for kids is a good idea to train them on managing their money. It is also a surefire way to boost their educational savings and other expenses. On that note, here are five of the best savings accounts for kids in Singapore.

#1: OCBC MIGHTY SAVERS KIDS ACCOUNT

If you have S$50 to spare, you can open your child’s OCBC Mighty Savers Kids Account. Enjoy a 0.05% interest to set a head start for your child. Avoid withdrawing money from your account to get an additional 0.05%. Grow your savings even more by opting to link it up with an OCBC Child Development Account to get another 1% (i.e., resulting to about 2% interest p.a.).

Available here: www.ocbc.com/personal-banking/deposits/mighty-savers-child-savings-account

#2: UOB JUNIOR SAVERS ACCOUNT

Children aged 16 and below can ask their parents to open a UOB Junior Savers Account. It is a joint account with the parents, with a minimum initial deposit of S$500. The interest rate p.a. is 0.05%. Once your child ages beyond 16, the account will automatically convert into a regular savings account. This regular savings account can be used to grow their wealth during adulthood.

Available here: www.uob.com.sg/personal/save/savings/junior-savers-account.page

#3: CIMB JUNIOR SAVER ACCOUNT

For parents who are eyeing for competitive interest rates, you can consider the CIMB Junior Saver Account. It offers a higher interest of 0.3% p.a. for the first S$200,000, 0.5% p.a. for the next S$800,000, and 0.3% for anything above S$1,000,000. What is the best part? There are no fall-below fees to maintain your child’s account. Set up an account online for approximately 10 minutes. It is that convenient!

Available here: www.cimb.com.sg/en/personal/banking-with-us/accounts/savings-accounts/cimb-junior-saver-account.html

Image credits: unsplash.com

#4: MAYBANK YOUNGSTARZ ACCOUNT

Believe it or not, S$10 is all you need to open the Maybank Youngstarz Account! It has the interest rates of 0.1875% p.a. for the first S$3,000, 0.3125% p.a. on the next S47,000, and 0.3750% p.a. for anything above S$50,000. You and your child may also indulge in other benefits such as Popular bookstore vouchers and exclusive birthday privileges.

Available here: www.maybank2u.com.sg/en/personal/accounts/savings/Youngstarz-Account.page

#5: POSB MY ACCOUNT

Help your child grow his or her finances by opening the POSB My Account. It works as a joint account. There is up to 3.8% interest p.a. when you convert your My Account to a Multiplier Account and it offers other benefits such as complimentary Popular bookstore 1-year student membership. The POSB Smart Buddy feature comes in handy as it automatically saves their pocket money and teaches them the importance of saving.

Available here: www.posb.com.sg/personal/deposits/savings-accounts/my-account-kids

Sources: 1 & 2

How Some Singaporeans Welcomed The Prosperous Li Chun

Last February 4, waves of people conquered queues at the banks and the cash deposit machines across the nation.

Why? You may promptly ask.

It is because practices of Li Chun (Farmer’s Day) fall on that day. Li Chun traditionally signifies the beginning of Spring in numerous Asian cultures including Singapore. On this day, farmers celebrate with special events, offerings, and rituals to welcome a successful and blissful new year.

While in recent years, some Singaporeans believed that banking in money on Li Chun can ensure good fortune and help grow their wealth. Furthermore, a superstition dictates that wearing a red top on this “auspicious” day can bring luck!

According to the charts available online, there are four two-hour windows designated for each individual to withdraw cash. The varied “lucky hours” are based on the person’s Chinese Zodiac Sign or the year they were born. This is why a number of brave souls were seen falling in a long queue for the whole course of the day.

Some banks and companies were aware of the popularity of this practice to the point that they have had things prepared beforehand. Two key players were United Overseas Bank (UOB) as well as DBS/POSB banks.

A spokesman for UOB shared that the bank had incorporated more services and staff to handle the higher demands of that day:

“Longer queues were seen at our cash deposit machines after 3pm, as it was the auspicious timing to usher in the year of the Monkey.

To ensure that our customers had a good customer experience, we catered for extra manpower at our branches, and also ensured that cash deposit machines were serviced and emptied to accommodate the extra volume of cash deposits.”

Then UOB stepped up their services by adding special seated queues for elderly, pregnant woman, and disabled.

On the other hand, about 10,000 DBS/POSB employees had their February salaries credited to their account last Thursday. According to Theresa Phua, DBS Bank Singapore Head of Human Resources, the bank had been crediting salaries before Chinese New Year in order for their valued employees to enjoy the festivities well.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

Newbie’s Guide To Singapore Banking

Image Credits: Tax Credits via Flickr

WHY SHOULD YOU KEEP YOUR MONEY IN THE BANK?

1. Protection

A potent reason why people prefer to keep their wealth in the bank is its security. Keeping your money at home may increase the risk of it getting stolen or damaged by unforeseen events such as fire. The banks are equipped with facilities to guard your money the best they can possibly can.

2. Accessibility

With the modern times, banking had become easier. More and more banks allow online banking and even Smartphone Apps to help its users to transfer money with the stroke of their fingertips. No need to endure a long queue! Furthermore, you can access your money anywhere as there are ATMs nationwide.

3. Saving and Investing

The money you park in the bank will have returns depending on the yearly interest provided by your bank. Also, you can take the opportunity to grow your savings even more by investing it in the stock market through the bank’s investment services.

TRUSTED BANKS IN SINGAPORE

Singapore is one of the strongest developed countries all over the world. This is why aside from local banks; renowned International banks have branches located here. With a myriad of choices which, shall you trust your money with?

To answer this question, Focus Singapore, a website that provides useful information on travel, business, and education, had ranked the “Top Banks In Singapore”. This ranking is solely based on the available data and research. On that note, here are 7 of Singapore’s premier banks:

1. Developmental Bank of Singapore (DBS)

2. Post Office Savings Bank (POSB)

3. United Overseas Bank (UOB)

4. OCBC Bank

5. Standard Chartered Bank

6. Citibank

7. HSBC

These commercial banks include the functions of universal banking such as allowing deposits, provision of cheques, and other businesses authorized by the Monetary Authority of Singapore. With these transactions, you may encounter abbreviations such as GST (Goods and Services Tax) that you may not be familiar with.

That said here are 10 COMMONLY-USED BANKING ABBREVIATIONS that you may see on your bank account statement:

1. ATM: Automated Teller Machine

2. BGC: Bank Giro Credit

3. INT: Interest

4. DIV: Dividend

5. CD: Cash Deposit

6. CW: Cash Withdrawal

7. S/O or SO: Standing Order Payment

8. IFT: Internet Banking Fund Transfer

9. IBP: Internet Banking Bills Payment

10. SC: Service Charge

Image Credits: 401(K) 2012 via Flickr

May these nuggets of knowledge help you in the future!

Sources: 1, 2, 3 and 4

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