OCBC to allow ringgit savings in Singapore up to RM50,000
The accounts will pay interest on ringgit balances, which customers can spend or withdraw using OCBC debit cards in Malaysia.
OCBC will introduce interest-bearing ringgit holdings for personal savings customers in Singapore from Oct. 23, with balances capped at RM50,000, the bank said. The service covers its Global Savings Accounts and Premier Global Savings Accounts.
Account holders can exchange Singapore dollars into ringgit and access the money through debit-card purchases or ATM withdrawals in Malaysia. OCBC said it would charge no foreign currency transaction fees and offer competitive exchange rates without high markups.
The annual interest rate will initially be 1%, followed by 0.5%, according to OCBC. Customers will not need to maintain a minimum balance. The bank said it would become the first lender from outside Malaysia to provide ringgit holdings through savings accounts in Singapore.
YouTrip and Wise already support ringgit holdings in multicurrency e-wallets. OCBC noted that cash kept in e-wallets earns no interest.
The bank said customers were increasingly monitoring currency movements and buying foreign currencies when the Singapore dollar strengthened. It also expects the forthcoming Johor Bahru-Singapore Rapid Transit System Link to encourage more cross-border journeys and consumer spending in Malaysia.
