Commentary: Low interest rates of ‘money lock’ are a disservice to bank customers

4 months ago 108

SINGAPORE: After victims lost hundreds of millions to scammers in recent years, Singapore banks introducing a “money lock” feature felt like a step in the right direction.

When it was shared in parliament in September 2023, the premise seemed simple enough: Money lock would allow customers to set aside an amount in their bank accounts that cannot be digitally transferred out without strict identity verification.

No one said anything about having to settle for a lower interest rate. Some netizens expressed dismay on online forums when Singapore’s three local banks revealed lower-than-ideal interest rates to be earned on locked funds.

Depending on which bank your funds are in, your experience of locking up your money to protect it from scammers will differ.

DBS and UOB customers will need to open a new, separate account, while OCBC customers can simply lock up funds within their existing accounts.

For DBS customers, this is done through digiVault, which is a standalone account with added security where deposited funds cannot be digitally transferred out. To access locked funds, one will need to personally visit a DBS or POSB branch to verify their identity first.

UOB customers have to similarly open up a separate account called UOB LockAway to activate this additional security, while unlocking it requires visiting a UOB bank branch with their NRIC or passport.

OCBC ...

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