Digital Banks Trim Deposit Rates, Mirroring Traditional Lenders

Move Could Push Customers to Explore Alternatives That Offer More Attractive Yield

- Sheila Chiang

Digital banks serving retail customers here have been trimming deposit interest rates in line with traditional lenders.

The cuts reflect the ongoing decline of interest rates globally and could push customers to explore alternative investment options offering more attractive yields.

Trust Bank, which is backed by Standard Chartered and the FairPrice Group, will reduce rates on its savings account from a maximum of 2 per cent a year on a cap of $1.2 million to 1.3 per cent from Sept 1, making its third cut so far in 2025.

A Trust Bank spokesperson said: "As market rates have gone down, banks have also lowered their deposit interest rates, and at Trust, we've done the same."

Savings account rates at Sea Limited's MariBank will drop from 1.88 per cent to 1.28 per cent from Sept 1—also its third cut in 2025.

MariBank chief executive Natalia Goh said that the move was to manage funding costs and support net interest margins, adding: "We regularly review our pricing to reflect these broader market shifts."

GXS Bank, which is owned by a Grab-Singtel consortium, lowered rates on Aug 6 for its main account savings product and "savings pockets"—a feature that lets a customer split his money into up to eight mini-accounts.

The declining yields on its primary savings account rate over the year illustrate the overall market trend of falling interest rates.

The account was paying 2.38 per cent earlier in 2025 but that has steadily fallen, dipping first to 2.08 per cent, then 1.68 per cent and now 1.08 per cent.

There have been similar moves from the major banks.