Online banking refers to accessing banking services over the internet through websites or mobile apps without needing to visit a physical branch.

It covers a wide range of services such as transferring funds using FAST or PayNow, checking account balances, paying bills through GIRO or eBill, and applying for credit cards, loans, and even insurance products. According to DBS Digibank, online banking includes both simple transactions like viewing balances and more complex services like foreign currency transfers.

Access is typically available via desktop computers, tablets, or smartphones, offering Singaporeans flexibility to manage their finances anytime, anywhere.

With convenience and cost savings at the forefront, online banking is increasingly popular among Singaporeans.

Lower fees

One of the biggest draws of online banks is their lower fees. Digital banks like Trust Bank and GXS, and even traditional banks' online platforms, often waive fees such as minimum balance charges.

Without the overheads of running physical branches, online banks can pass on the savings to consumers — leading to cheaper, more attractive services.

» Compare overdraft fees at our local banks

Better interest rates

Online-only banks and digital savings accounts frequently offer better interest rates compared to traditional banks. For instance, Trust Bank and GXS provide competitive savings rates, while traditional banks like Standard Chartered’s Bonus$aver account reward customers who fulfil online banking tasks like crediting salaries and paying bills digitally.

» See the full breakdown in our digital banking showdown

Because online banks save on operating costs, they can reinvest these savings to offer higher returns to customers.

» You can also supercharge your savings with a fixed deposit

While online banking is convenient, it is not without drawbacks — especially for customers who prefer in-person service or have more complex banking needs.

No physical branches

For customers who value face-to-face assistance, particularly for complex transactions like mortgage advisory or investment planning, the absence of physical branches can be a downside.

Additionally, services such as document notarisation or large cash transactions still require a physical branch visit.

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Cash is harder to deposit

In Singapore, cash deposits still mainly happen at ATMs or branch counters. Digital-only banks like Trust Bank and GXS do not offer cash deposit facilities.

As a workaround, customers often deposit cash into a traditional bank first, then transfer the funds electronically to their online account.

» Explore everything deposit-related with our overview

Fewer one-stop-hub options

Traditional banks like DBS and OCBC offer a full suite of services — investments, insurance, wealth management, and more.

Online banks tend to focus on core banking services, offering limited options for bundled financial products. While some online banks do provide additional services such as investments, they typically do not offer the comprehensive range that traditional banks do.

» And if you decide to do so, learn how to switch banks

Online banking platforms in Singapore are highly developed, offering services such as:

• FAST transfers, PayNow, PayLah!, and PayAnyone transactions

• Opening fixed deposits digitally

• Access to integrated investment platforms like OCBC Digital Investing

• Applications for credit cards, personal loans, and travel insurance

• Updating personal details like home address directly through banking apps

Thanks to this extensive range, most banking needs in Singapore can be met online with minimal hassle.