Introduction
If you are looking for a savings account in Singapore, OCBC offers a range of options that might suit your needs. However, one thing you need to be aware of is the fall below fee, which is a charge that is imposed when your account balance falls below a certain amount. This fee can eat into your savings and reduce the interest you earn, so it is important to understand how it works and how you can avoid it.
Understanding Fall Below Fees
A fall below fee is a charge that is levied when your account balance falls below a specific threshold. This fee can vary depending on the bank and the type of account you have, but it is usually a fixed amount or a percentage of your balance. In the case of OCBC savings accounts in Singapore, the fall below fee can be as high as S$5 per month.
OCBC Savings Account Features
OCBC offers a range of savings accounts that come with different features and benefits. Some accounts require a minimum balance to be maintained, while others do not. Some accounts offer higher interest rates, while others offer more flexibility in terms of withdrawals. It is important to choose an account that meets your needs and fits your financial situation.
Understanding Fall Below Fees
If you’re looking to open a savings account in Singapore, you may have come across the term “fall below fee”. In this section, we’ll explain what a fall below fee is and why banks charge it.
What Is a Fall Below Fee?
A fall below fee is a charge that banks or financial institutions impose on customers who fail to maintain a minimum balance in their savings account. This minimum balance is usually set by the bank and can vary depending on the type of account and the financial institution.
For example, OCBC Bank charges a fall below fee of S$2 per month if your average daily balance falls below S$3,000 for their 360 Account. Similarly, if you have a Home Savings account with OCBC Bank, you will be charged S$7.50 per month if your average daily balance for the month falls below S$3,000.
Why Do Banks Charge This Fee?
Banks charge fall below fees to encourage customers to maintain a minimum balance in their savings account. This is because banks use the money deposited in savings accounts to lend to other customers and earn interest. By requiring a minimum balance, banks ensure that they have a stable source of funds to lend out.
Moreover, the fall below fee is a way for banks to generate revenue. Banks earn money by charging fees and other charges to their customers. The fall below fee is one such charge that banks use to generate revenue.
In conclusion, if you’re planning to open a savings account, it’s important to understand the fall below fee and the minimum balance requirements set by the bank. By maintaining a minimum balance, you can avoid paying the fall below fee and ensure that you’re making the most of your savings account.
OCBC Savings Account Features
If you’re looking for a savings account that offers great benefits and interest rates, then OCBC Savings Account is the perfect choice for you. This account comes with a variety of features that are designed to help you save money and earn more.
Interest Rates and Benefits
One of the main benefits of the OCBC Savings Account is its interest rates. With a base interest rate of 0.05% p.a., you can earn additional bonus interest of up to 0.05% p.a. when you deposit at least $50 and make no withdrawals in the same month. This is a great incentive to save money and earn more interest on your savings.
Another benefit of the OCBC Savings Account is that you can link it to your OCBC Credit Card. This allows you to earn bonus interest on your savings when you use your credit card for eligible transactions. The bonus interest is capped at $75,000, which is a significant amount of savings.
OCBC 360 Account Specifics
If you’re looking for a more comprehensive savings account, then the OCBC 360 Account might be a better fit for you. This account comes with additional benefits and features, such as a higher base interest rate of 0.05% p.a., a minimum deposit of $1,000 for account opening, and a minimum monthly balance of $3,000 to avoid a $2 fall below fee.
The OCBC 360 Account also offers bonus interest rates for various activities, such as salary crediting, bill payments, and investments. This means that you can earn even more interest on your savings by simply doing things you would normally do.
In conclusion, the OCBC Savings Account is a great choice for anyone who wants to save money and earn more interest on their savings. With its competitive interest rates and bonus interest, you can easily grow your savings over time. And if you’re looking for even more benefits, the OCBC 360 Account has you covered with its comprehensive features and bonus interest rates.
Eligibility and Requirements
If you’re interested in opening an OCBC savings account, there are certain eligibility criteria that you must fulfill. Here are the requirements for Singaporeans, PRs, and foreigners residing in Singapore.
For Singaporeans and PRs
To open an OCBC savings account, you need to be at least 16 years old and possess a valid NRIC. You can apply for the account online or by visiting any of the OCBC branches. You can start saving from as low as S$50 per month and earn higher interest rates when you do not make any withdrawals.
For Foreigners Residing in Singapore
Foreigners residing in Singapore can also apply for an OCBC savings account if they possess a valid passport and a valid pass. The minimum age requirement for foreigners is also 16 years old. However, the requirements for opening an account may vary depending on the type of pass you possess.
If you’re an Employment Pass holder, you can easily apply for an OCBC savings account online. However, if you’re a Work Permit holder, you need to visit any of the OCBC branches to apply for the account.
It’s important to note that there is a minimum monthly balance requirement of S$3,000 for the OCBC 360 account, and a fall below fee of S$2 applies if you do not maintain the minimum balance. For other savings accounts, the minimum balance requirement may vary.
Overall, opening an OCBC savings account is a straightforward process, and the eligibility criteria are easy to fulfill. With competitive interest rates and easy online access, an OCBC savings account is an excellent way to save money in Singapore.
Avoiding the Fall Below Fee
If you have an OCBC savings account, it’s important to avoid the fall below fee to save money. Here are some tips to help you maintain the minimum balance and avoid the fee.
Maintaining the Minimum Balance
The first step to avoiding the fall below fee is to make sure you maintain the minimum balance. For OCBC savings accounts, the minimum balance is S$3,000. This means that you need to have at least S$3,000 in your account at all times to avoid the fee.
To help you maintain the minimum balance, you can set a savings goal and work towards it. You can also set up automatic transfers from your checking account to your savings account each month to ensure that you are consistently saving money.
Tips for Consistent Savers
Consistency is key when it comes to saving money and avoiding the fall below fee. Here are some tips to help you stay on track:
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Create a budget: A budget can help you manage your money and ensure that you are saving enough each month to maintain the minimum balance.
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Track your expenses: Tracking your expenses can help you identify areas where you can cut back and save more money.
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Use a savings account calculator: A savings account calculator can help you determine how much you need to save each month to reach your savings goal.
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Take advantage of bonus interest rates: Some OCBC savings accounts offer bonus interest rates for meeting certain criteria, such as making a minimum number of transactions each month.
By following these tips, you can avoid the fall below fee and save money in the long run.
Additional Benefits and Services
If you are looking for a savings account in Singapore, the OCBC savings account is an excellent option. Not only does it offer competitive interest rates, but it also comes with additional benefits and services that can help you save even more money.
Bundled Insurance and Investment Options
One of the most significant benefits of the OCBC savings account is that it comes with bundled insurance and investment options. This means that you can purchase insurance and investment products directly through OCBC, which can help you save money on premiums and fees.
For example, if you purchase an eligible insurance product from OCBC, you can earn an additional 0.60% interest on your savings account balance. Similarly, if you invest in an eligible investment product, you can earn an additional 1.20% interest on your savings account balance.
Digital Banking Perks
Another benefit of the OCBC savings account is that it comes with a range of digital banking perks. This includes access to OCBC’s mobile and online banking platforms, which allow you to manage your account from anywhere, at any time.
With OCBC’s mobile banking app, you can check your account balance, transfer money, pay bills, and even apply for loans and credit cards. Meanwhile, OCBC’s online banking platform allows you to access your account from your desktop or laptop computer, giving you even more control over your finances.
In addition to these digital banking perks, OCBC also offers a range of other benefits and services, including access to investments and insurance products, as well as discounts on dining, shopping, and entertainment through the OCBC 365 credit card.
Overall, the OCBC savings account is an excellent option for anyone looking to save money in Singapore. With competitive interest rates, bundled insurance and investment options, and a range of digital banking perks, it’s a great way to make your money work harder for you.
Frequently Asked Questions
What’s the minimum sum to maintain in an OCBC Savings Account to dodge the fall below fee?
To avoid falling below the minimum balance required for an OCBC Savings Account, you must maintain a minimum sum of $500 in your account.
How hefty is the penalty if my OCBC Savings Account balance plummets below the required minimum?
If your account balance falls below the minimum sum required, you will be charged a fall below fee of $2 per month. This fee is waived for the first year, but after that, you will be charged if your balance falls below the minimum amount.
Could you enlighten me about the early closure charges for an OCBC Savings Account, please?
If you decide to close your OCBC Savings Account within six months of opening it, you will be charged an early closure fee of $30.
What are the prerequisites for opening an OCBC Savings Account, particularly for overseas clients?
To open an OCBC Savings Account, you must be at least 16 years old and a Singaporean, Permanent Resident or foreigner with a valid pass. Overseas clients may need to provide additional documentation, such as proof of address and identification.
Is maintaining a certain balance in my savings account crucial to sidestep fees?
Yes, maintaining a minimum balance is crucial to avoid falling below the required amount and incurring fees. For an OCBC Savings Account, you must maintain a minimum balance of $500 to avoid the fall below fee.
What distinguishes the OCBC 360 Account’s minimum balance from other savings accounts?
The OCBC 360 Account has a higher minimum balance requirement compared to other savings accounts. To avoid falling below the minimum balance and incurring fees, you must maintain a monthly average balance of $3,000. However, the account offers higher interest rates and bonus interest for fulfilling certain criteria, such as salary crediting and spending on OCBC credit cards.