POSB is the least interest n the least benefit bank in Singapore?Why do everyone still had an account there?

Question

POSB's interest is annually n normally it's few cents if u only have few thousand in the bank.Investment plan they came out,normally,the invester only recieve little gift or benefit depends on the number of risk they say will take.Unlike others,they give ipod,pc,ps2 etc.

Answer 1

POSB is the first "Government" bank in Singapore. In the past, there was no minimum amount to open a account with POSB. Thus, most Singaporean have a account with POSB. In school, students were encouraged to save by opened an account with POSB, and they would buy stamps to encourage saving.

Answer 2

There is a historical reason. For the virtue of POSB starting as the first government savings bank, most people started with it. Interest was non-taxable and guarranteed by the state. At a time, all civil service pay and National Service allowances had to be credited to POSB, and no other bank was permitted. Hence when DBS took control of POSB, it obtained an unfair advantage of having many more depositors and infrastructure that it didn't earn (or deserve), and service quality plunged... so on and so forth. Nonetheless, it still has the biggest ATM network on the island as its strongpoint, hence many people still choose to bank with POSB.

Answer 3

The average Singaporean spend nearly every cent they earned. On the other had POSB has the most ATM networks in Singapore. Very useful. Earning interests is just a small benefit.

Answer 4

Is the bank that company will transfer your salary using GIRO. So you need this bank. It still function like the old days even DBS had taken over. I think that why it never change it's name.