DBS, OCBC, and UOB announce new money-locking features

digiVault, DBS’ new feature, allows customers to lock up their funds digitally in a designated account, from which money cannot be digitally transferred out. The bank’s users can apply for a digiVault account through digital banking and have it approved within minutes, with a push notification being sent to them when the vault can be accessed and they can deposit funds. In order to access the funds in the vault, customers need to visit a DBS or POSB branch to verify their identity and, once verified, the funds get transferred to their account. Furthermore, the vault account’s closure will also be done at a branch. The bank plans to make digiVault available to all DBS and POSB customers by the beginning of December 2023. Customers also receive the option to lock up their fixed deposit accounts, preventing premature digital withdrawals or changes to maturity instructions. According to the bank’s officials, this intends to reduce the risk of scammers withdrawing fixed deposit funds digitally if they gain unauthorised access to customers’ phones and accounts.

UOB’s customers can open LockAway accounts that do not allow digital payments and outbound transfers, with users being able to access the locked-up funds only by visiting a bank branch and verifying their identity. Representatives from the bank stated that UOB is currently evaluating ATM withdrawals as an additional method of cash dispensation, with plans to introduce it in the near future after receiving customer feedback. Due to the nature of the account, UOB did not impose a minimum initial deposit or balance requirement. Moreover, for an additional layer of security, no cheque book will be issued for the UOB LockAway account, as well as no existing cards can be linked to it. Customers can view their balances and deposit funds into their accounts digitally, with the sums held in the LockAway account receiving interest at rates that will soon be announced, according to UOB.

OCBC customers will not be required to open a new bank account to use the bank’s Money Lock feature, with funds being locked by leveraging the app or internet banking. Also, the bank instituted limits regarding the funds, as customers can lock up money in multiples of 10 Singaporean Dollars, with the maximum amount being the available balance in the account. Funds can be unlocked at OCBC ATMs by using a credit or debit card and their PIN, or in a bank branch. Furthermore, funds locked in customers’ accounts are aggregated with the funds that are not to calculate the interest to be earned, allowing users to not miss out on the bonus interest earned in their account balances. According to representatives, customers need to consider their regular or recurring expenses, and near-term requirements, as well as plan for emergencies, with them only locking excess funds that they do not require for use in the foreseeable future.

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