OCBC, UOB, DBS to allow customers to lock savings for in-person withdrawal only
CUSTOMERS of the three local banks will soon be able to lock their savings. Locked funds cannot be digitally used or moved, and physical verification will be required to unlock these, said OCBC, UOB and DBS in separate statements on Monday (Nov 27).
OCBC and UOB customers can lock their savings from Thursday. DBS is rolling out a locked account by Dec 7.
OCBC customers can lock the money in their existing accounts via online banking or the OCBC Digital app.
UOB customers, meanwhile, will need to open UOB LockAway Accounts on the bank’s website and UOB TMRW app, or physically at the UOB branches.
DBS will progressively roll out digiVault accounts from Monday to Dec 7. Funds in these accounts can only be accessed by raising a request physically at DBS or POSB branches.
DBS will offer an additional 1.8 per cent per annum interest on customers’ average daily balance in digiVault accounts over the promotional period ending Feb 29, 2024. “For customers with multiple digiVault accounts, only the first account will be eligible for the additional interest,” the lender added.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In addition to digiVault, DBS and POSB customers can choose to lock their single-name fixed deposit accounts from Monday. This is to enhance security by preventing premature digital fund withdrawals or changes to maturity instructions.
“Similar to digiVault, customers will have to personally visit a DBS or POSB branch and verify their identity in order to unlock their fixed deposits,” said DBS. “With this new option to lock their fixed deposits, customers reduce the risk of scammers prematurely withdrawing their fixed deposit funds digitally, should they gain unauthorised access to customers’ phones and accounts.”
OCBC will also allow its customers to lock fixed deposits from the first quarter of 2024, the bank told The Business Times.
SEE ALSO
The funds locked in OCBC’s current and savings accounts can only be unlocked or accessed at an OCBC ATM or branch. The bank noted that authentication to unlock the funds at ATMs will require a debit or credit card, and the customer’s personal identification number (PIN).
The bank said that from Thursday, customers will be able to unlock funds at any of the lender’s branches, or at any of the OCBC ATMs located at these branches, which are accessible 24/7.
It added that by the end of December this year, customers will be able to use all OCBC ATMs islandwide to unlock their funds.
UOB customers can access funds in their LockAway Accounts only at physical branches, by presenting their identity cards or passports to branch staff for verification.
“UOB is also evaluating ATM withdrawals as an additional mode of dispensing cash, and may introduce it in the near future subject to customer feedback,” said the lender.
There will not be a minimum initial deposit or balance requirement for UOB LockAway Accounts. No cheque book will be issued, and existing cards cannot be linked to the accounts. Monies held in UOB LockAway Accounts will also earn interest, with rates to be announced in the coming days, the bank said.
Jacquelyn Tan, head of group personal financial services of UOB, said the branch staff will act as a line of defence, but that customers should always exercise vigilance and caution.
For OCBC customers, the funds can be locked in multiples of S$10, with the maximum amount being the available balance in the bank account. The minimum amount that can be locked is S$10.
“Funds locked in their account are aggregated with the funds that are not locked to calculate the interest to be earned,” said OCBC. “As a result, customers will not miss out on the bonus interest earned on their account balances for performing everyday banking transactions.”
The bank also noted that customers should only lock excess funds that they do not foresee using in the near future.
Beaver Chua, OCBC’s head of anti-fraud, group financial crime compliance, said the move is an important measure to protect customers against rampant scams.
“Customers will have added peace of mind knowing their hard-earned monies are ‘locked up’ and will be safe, even if their mobile devices or bank account login credentials fall into the wrong hands. At the same time, customers must continue to exercise vigilance, as they are the first line of defence against all forms of scams.”
The Monetary Authority of Singapore (MAS) said that the “money lock” measures by local banks complement anti-scam efforts that have been progressively implemented since 2022. “By locking away a portion of their funds from Internet access, customers can limit the funds that may be lost to scammers from malware and phishing, or through impulsive transfers made under pressure.”
A spokesperson for MAS noted that while accessing the locked funds via a separate channel is less convenient for customers, it limits the damage that scammers can cause over a short time.
“We encourage consumers who wish to have greater peace of mind and security, to consider using the ‘money lock’ feature offered by the three banks for funds which they do not need to access via digital means.
“MAS will continue to work closely with the industry to review and enhance the suite of anti-scam measures in keeping with the evolving scam landscape.”
Copyright SPH Media. All rights reserved.
