Do Away With The Frills, Pay Higher Interest Instead, POSB

Source : The Straits Times, Forum, Aug 31, 2007

I REFER to the article, 'POSB gets a boost with $35m makeover' (ST, Aug 29), and am saddened by DBS' lavish spending to refurbish the 'People's Bank' where rising service charges and affordability are paramount concerns to account holders.

The 'People's Bank' started off as a poor man's savings bank for the masses with minimal balance of $1 and paying interest at a nominal rate.

But now, you need to maintain a daily average balance of $500. When the amount falls below the threshold, a fee of $2 per month is levied.

Many low-income workers earning less than $1,000 are compelled to open a savings account for the convenience of the employers.

It is impossible for them to maintain the daily average balance of $500 when they are living from hand to mouth, and some with many mouths to feed.

There are also many old folk and senior citizens whose old-age savings are placed with the bank earning a miserable low interest.

These elderly folks, who in their youth had contributed to national building, should be rewarded by the 'People's Bank' as a corporate citizen by waving the monthly $2 fees and offering a higher interest rate that will benefit them more than all the frills fitted in the branch premises.

Chin Kee Thou