POSB offers savings scheme, card rebates for national servicemen
FULL-TIME national servicemen (NSFs) can now earn an interest rate of 2 per cent per annum under a new POSB scheme.
To do so, they have to allocate a portion of their monthly salary to a POSB Save-As-You-Earn account.
The amount they can set aside a month is capped at between $50 and $3,000. They will earn an interest of 2 per cent on these savings.
This is a component of the "POSB Save-As-You-Serve" scheme, launched yesterday, to recognise the contributions of national servicemen.
NSFs can transfer money into this account and earn the 2 per cent interest for 24 months from their month of enlistment, including their month of enlistment.
At the end of the 24 months, the amount in the account will will earn only the ordinary savings account rate.
For NSFs who are now in the midst of their service, they will be able to transfer a monthly amount from their salaries to the account and earn a 2 per cent interest for 24 months starting from today.
If these NSFs take up jobs after they complete their national service within the 24 months, they too can transfer part of their salary to this account and earn the 2 per cent interest.
Another perk for NSFs and NSmen is a 2 per cent rebate on all local contactless payments made on their HomeTeamNS-PAssion-POSB debit card or their Safra DBS debit card.
For NSmen, they have to spend at least $400 a month on the card to obtain these rebates but there is no minimum spending requirement for NSFs.
The rebates NSFs can earn a month are capped at $50.
POSB says it is the first bank to offer a rewards programme specifically for NSFs and NSmen.
Desmond Lee, Senior Minister of State for Home Affairs and National Development, said the "Save-As-You-Serve" initiative "will give NSFs a head start in their savings journey".
"Over 50,000 members, including NSFs and NSmen, will also be able to earn higher cash rebates on contactless card payments made through their
HomeTeamNS-PAssion-POSB debit card or DBS Safra cards," he added.
Mr Lee said that he hoped more partners will come on board to introduce other innovative programmes to recognise the contributions of NSFs and NSmen.