SINGAPORE - Standard Chartered is riding on the millennial wave for savings and investments, with the launch of its first product targeted at this segment of young customers on Wednesday (Nov 20).
Known as the JumpStart savings account, it offers young people between 18 and 26 years old an interest rate of 2 per cent for the first $20,000 and a debit card with a 1 per cent cashback on spending with a cap of $60 a month.
This account has no minimum deposit, no fall-below fee and no lock-in period. It also does not require customers to credit their salaries into the account, unlike most other millennial-focused savings products. There are also no annual or monthly fees, as well as no minimum spend for the debit card.
JumpStart also offers 100 per cent fee rebates for up to the first $20,000 for investments made through StanChart's online trading and online unit trust.
Since its soft launch two months ago, almost 7,000 Jumpstart accounts were opened. The bank allows customers to apply directly online and have their Jumpstart applications instantly approved. Millennials can still maintain their JumpStart account after they turn 27 years old, but at prevailing interest rates.
According to research commissioned by the bank, this particular segment of young people is "mostly incognisant with banking products and services due to the lack of knowledge and funds".
Over the next five years, these millennials' key priorities include settling down in a stable job and setting saving goals for home ownership and marriage. This new account will provide young people a platform that will fit their needs as they transition into working professionals, said StanChart.
Dwaipayan Sadhu, head of retail banking Singapore, said: "Savings form the foundation of financial well-being, and we wanted to give young millennials a good reason and provide a great platform to start building healthy financial habits."
He said that the initial response has been "overwhelming" thus far.
"This is an exciting start and we have plans to further broaden Jumpstart to cover other areas which are meaningful to this segment, such as financial seminars and giving back to society," he added.