Rejected by ST Forum

Minimum of $500 for POSBank Savings/Current

I am writing to address my concern on the fact that DBS Group have decided to impose a charge for the No. 21st onward cheque issued. While I appreciate that in the light of cost saving and with the objective of streamlining processes and encouraging the use of GIRO, this, to some extent is fairly reasonable but $0.40 per cheque issued could be dear.

My other concern which bears a higher weightage is the requirement to maintain a minimum of $500 for POSBank savings and current accounts, with penalties. I am not sure if the bank had taken into consideration that there are still a certain percentage of average income Singaporeans >21 and <62 trying to make ends meet each month with very little savings.

It appears to me that our Singapore (POSBank) bank which very existence was to be of aid to those who are not as financially sound and yet be able to start a savings account had deviated from its original objective.

I am talking about production operators, domestic helpers, blue collarworkers and for that matter some of our average income white-collar workers in Singapore whose take home salaries are mostly sucked up trying to feed the family, paying utility bills, telephone bills,insurance premiums, transport, meals, marketing and other dailyessentials from time to time.

For instance:

With a monthly salary of $1700:

Less

CPF contribution $340

Union fee $ 8

Association $ 1

CDAC $ 0.50

Total deductions $349.50

 

Nett salary $1350.50

Less Expenses

Insurance Policy $ 234.00

PUB/Gas Bill $ 100.00 (with air-condtioning)

Transport $ 120.00 (no cabs just bus)

Meal $ 200.00 (based on $5/day)

Telecom $ 25.00 (with call-waiting)

Pager $ 25.00

Mobile phone $ 40.00

Toiletries $ 30.00

Parents $ 300.00 (2 retirees)

Miscellaneous $ 100.00 (Weddings/births/deaths/the unexpected)

Internet account $ 10.00

Total Expenses $1184.00

Less Nett Salary

$1350.50

Balance

$166.60

The above budget is fairly typical of a Singaporean assuming all goes well. I am really wondering with such little savings of < $170 whether it would be fair to impose a penalty or to require $500 minmum savings still. Perhaps the bank can really reconsider imposing such penalty taking into considerations:

1) the individuals take home salary

2) the consistent monthly balance esp just their salaries were credited

As it is, some of those I know are already trying to keep their nosesabove the water by maintaining $20/mth which is POSBank's prevailing requirement for passcard holders.

I believe there is no necessity for me to elaborate further.

Regards

Linda Huang

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