We thank Mr Tan Suan Jin for his feedback ("Review minimum bank balance fee for the needy"; Forum Online, Sept 1).
Since 2003, the major retail banks here have been offering basic banking account services to all Singaporeans/permanent residents with monthly incomes of less than $2,000. This ensures that the account holders are able to access convenient banking services such as ATMs and Giro.
To defray the costs associated with setting up and maintaining each account, banks have a monthly fall-below fee of $2 when the account balances fall below the minimum levels.
This fee also helps to discourage account holders from opening multiple accounts with small balances, which are often dormant. That said, the fall-below fee is waived for account holders who are on public assistance schemes.
Ong-Ang Ai Boon (Mrs)
The Association of Banks in Singapore
This article was first published on Sep 10, 2014.
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