OCBC to add ringgit to Singapore-based savings accounts from Oct 23
Customers can hold up to RM50,000, earn interest on their balances and spend directly in Malaysia
[SINGAPORE] OCBC will allow customers to hold the Malaysian ringgit in their Singapore-based multi-currency savings accounts from Friday (Oct 23), becoming the first non-Malaysian bank to offer the service.
In a statement on Wednesday, the lender said that customers with OCBC global savings accounts and premier global savings accounts will be able to convert Singapore dollars into ringgit and hold up to RM50,000 (US$12,250) in their accounts. No minimum balance is required.
They will also be able to earn interest on their ringgit balances – a feature not available on digital multi-currency wallets. Customers will earn interest of 1 per cent per annum on their ringgit balances till Jun 30 next year. Thereafter, they will earn interest of 0.5 per cent per annum.
Other features include being able to spend directly in Malaysia using a linked OCBC debit card without foreign currency transaction fees, and withdraw cash in ringgit from OCBC ATMs in Malaysia without additional charges.
The addition brings the number of currencies supported by OCBC’s multi-currency savings accounts to 11.
The lender noted that opportunities to hold ringgit in bank accounts outside Malaysia have been limited, as the currency is tightly controlled.
Its move comes amid rising spending by Singapore residents in Malaysia. According to OCBC, the value of transactions done across the Causeway by its customers has grown at a compound annual rate of 25 per cent since 2022.
Malaysia is also the most popular overseas spending destination among the bank’s customers, accounting for one in three overseas transactions, with dining and shopping making up the largest spending categories.
The upcoming Johor Bahru-Singapore Rapid Transit System Link is expected to further boost cross-border travel and spending.
OCBC’s head of group wealth management, Tan Siew Lee, said the new offering will allow customers to convert their money when exchange rates are favourable, while earning interest on their ringgit balances.
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