OCBC Bank has launched a new feature for its credit and debit cards that allows cardholders to save as they spend.
With SmartChange, every purchase charged to an OCBC credit or debit card will be rounded up to the next dollar, with the difference being banked into a designated OCBC savings account.
For example, a bill of $4.80 for a cup of coffee will be rounded up to $5, with the 20 cents of "spare change" deposited into the customer's savings account with OCBC Bank.
This, said the bank, is different from other save-as-you-spend schemes that offer rebates or savings that can be used only to offset future expenditure charged to the cards.
SmartChange gives actual cash savings which are deposited directly into the cardholder's bank account. Those who sign up for the feature will also get a 0.4-per-cent rebate on their purchases.
Said head of lifestyle credit Lynn Gaspar: "While all of us brace ourselves for tough times ahead, it is not realistic to avoid spending altogether.
"SmartChange helps our card members save effortlessly while making everyday purchases or spending on life's little indulgences."
Besides their personal savings accounts, OCBC cardholders can also choose to channel their "spare change" to other accounts with the bank, including the OCBC Children Development Accounts.
This would allow parents to help their children save, said OCBC Bank.
Referring to the "spare change", Mr Nicholas Tan, head of global wealth management, said: "While the amount from one OCBC card member may be small, the combined contributions from several adults can be quite significant."
