SINGAPORE - Full-time national servicemen (NSFs) can now earn an interest rate of 2 per cent per annum under a new POSB scheme.
To do so, they have to allocate a portion of their monthly salary to a POSB Save-As-You-Earn account. The amount they can set aside a month is capped at between $50 and $3,000. They will earn an interest of 2 per cent on these savings.
This is a component of the "POSB Save-As-You-Serve"scheme, launched on Monday (June 20), to recognise the contributions of national servicemen.
NSFs can transfer money into this account and earn the 2 per cent interest for 24 months from their month of enlistment, including their month of enlistment.
At the end of the 24 months, the amount in the account will will only earn the ordinary savings account rate.
For NSFs who are now in the midst of their service, they will be able to transfer a monthly amount from their salaries to the account and earn a 2 per cent interest for 24 months starting from today.
If these NSFs take up jobs after they complete their national service within the 24 months, they too can transfer part of their salary to this account and earn the 2 per cent interest.
Another perk for NSFs and NS-men is a 2 per cent rebate on all local contactless payments made on their HomeTeamNS-PAssion-POSB debit card or their Safra DBS Debit Card.
For NS-men, they have to spend at least $400 a month on the card to obtain these rebates, but there is no minimum spending requirement for NSFs.
The rebates NSFs can earn a month is capped at $50.
POSB says it is the first bank to offer a rewards programme specifically for NSFs and NS-men.
Said Mr Desmond Lee, Senior Minister of State for Home Affairs and National Development: "I am heartened to know that many companies share our vision to recognise our NS community... Under the "Save-As-You-Serve" (SAYS) initiative, POSB will give NSFs a head-start in their savings journey.
" Over 50,000 members, including NSFs and NSmen, will also be able to earn higher cash rebates on contactless card payments made through their HomeTeamNS-PAssion-POSB Debit card or DBS SAFRA cards."
He added he hoped more partners will come on board to introduce other innovative programmes to recognise the contributions of our NSFs and NSmen.