DBS Introduces New Deposit Account To Offset Fall-Below Fee

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New Account Helps Lower-Income Working Customers Meet Minimum Balance Requirement With CPF Funds from Special Account

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Temporary Waiver On Fall-Below Fee To Be Removed In January 2001

SINGAPORE, SEP 26 - DBS Bank said today it will be introducing a new deposit account, the DBS 5-Year Deposit Account, to help lower-income customers meet the minimum balance required for their personal savings account by using their CPF balances.

This is in response to the needs of the lower-income customers earning less than $1,500 a month who are unable to maintain a minimum of $500 in their personal savings account. DBS Bank's Chairman, S. Dhanabalan unveiled the details of the account at a press conference today.

"In May, when DBS introduced bank charges and minimum balance requirements, we made a commitment that we would look at ways to help customers who are unable to maintain the minimum balance of $500 in their savings account. We had to find a viable solution for customers who need a savings account to receive their salaries but are not able to maintain the minimum of $500 required for their savings account," Dhanabalan said.

"The announcement by the government that it intended to further liberalise the use of CPF balances for investment, opened the possibility of a solution. Until the implementation of this new policy, DBS waived the fall-below fee for savings accounts of customers who maintained only one savings account," continued Dhanabalan.

With the government's recent announcement of new liberalised CPF rules, DBS will introduce this new 5-Year Deposit Account. DBS will remove the temporary waiver for fall-below fee from January 2001. This means that customers whose account hold less than $500 monthly will have to either top-up to meet the minimum balance required or if eligible, sign-up for the new deposit account by November 30 to enjoy the fall-below fee waiver from January 2001.

Customers eligible for the DBS 5-Year Deposit Account are those between the ages of 21 and 61 years, earning a monthly gross salary of $1,500 or less with a single personal DBS or POSB savings account used primarily for salary crediting. To open such a DBS 5-Year Deposit Account, the customer must have a CPF account, with at least $500 in his / her CPF Special Account.

This DBS 5-Year Deposit Account has been structured as a five-year S$ fixed deposit which will earn a rate of return of 4% per annum, equal to the rate of return earned on funds placed in the CPF Special Account. The $500 and interest earned can be rolled over after the five-year period.

Customers can apply for the new DBS 5-Year Deposit Account by completing an application form and sending it back to the Bank for processing. DBS will work with the CPF Board to transfer the $500 from the customers' CPF Special Account into their new DBS 5-Year Deposit Account from January 2001 onwards.

Application forms for the new deposit accounts are available at all the DBS and POSB branches, NTUC Clubs and selected NTUC Fairprice outlets. Customers with queries can call the special toll free hotline at 1800-334-0220.