🏦 BanksLocal bank, foreign bank or digital bank: where to keep your account?
Most people in Singapore bank with one of the three local groups — DBS (and POSB), OCBC, or UOB. Alongside them are foreign banks (Standard Chartered, Citi, HSBC, Maybank), and the newer digital banks (GXS, Trust Bank, MariBank) that operate app-only. All hold an MAS licence and are covered by SDIC deposit insurance up to S$100,000. The choice comes down to fees, the interest you earn, service, and how you actually move money. This guide compares them.
Fees and what you earn
Local banks are convenient and have the largest ATM and branch networks, and PayNow and FAST transfers between any Singapore banks are instant and free for individuals. Their basic savings rate is very low, but their 'bonus interest' accounts (DBS Multiplier, OCBC 360, UOB One) pay a much higher rate if you credit your salary, spend on their card and pay bills through them.
Digital banks skip branches and often pay a flat higher rate on savings with no hoops, plus low or no fees. Foreign banks can be worth it if you need multi-currency accounts, overseas transfers or global card acceptance, but watch monthly fees and fall-below fees.
Borrowing and service
The local banks offer the full range — HDB-eligible and private home loans, car loans, renovation loans, credit cards, wealth management, SGX trading through their brokerage arms. Digital banks currently focus on deposits, a card and small personal loans. Foreign banks compete hard on home-loan rates and premier banking.
For a home loan, compare the local banks and foreign banks on the rate and the lock-in, and compare that against the HDB concessionary loan if you are buying an HDB flat.
Safety
Every MAS-licensed full bank and finance company in Singapore — local, foreign or digital — is a member of the SDIC Deposit Insurance Scheme, which covers Singapore-dollar deposits up to S$100,000 per depositor, per bank. Above that limit, or in foreign currency, you are relying on the bank's own strength.
A common setup is: a bonus-interest account at a local bank for salary and everyday spending, a digital-bank account for extra savings at a better flat rate, and government instruments (Treasury bills, Singapore Savings Bonds) for larger balances beyond the S$100,000 guarantee.
Frequently Asked Questions
- Are digital banks safe in Singapore?
- GXS, Trust Bank and MariBank hold full MAS banking licences and are SDIC members, so Singapore-dollar deposits are covered up to S$100,000 per bank just like at DBS, OCBC or UOB. The trade-off is fewer services and no branches, not less protection.
- How do I get the higher advertised savings rate?
- The local banks' headline rates (Multiplier, 360, One) require you to credit your salary, spend a minimum on their credit card, and often pay bills or invest through them. If you will not meet the conditions, a digital bank's flat rate may beat the base rate you would actually get.
- Is it free to transfer money between banks?
- Yes. PayNow (using a phone number, NRIC or UEN) and FAST transfers between Singapore banks are instant and free for individuals, so you can keep accounts at several banks and move money between them without cost.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (CPF, the Monetary Authority of Singapore, IRAS, and the SDIC) before making a decision.
