Frank by OCBC Malaysia
Frankly, I think Frank by OCBC Malaysia is one of the better high interest savings accounts (HISA) out there (pun intended). Perfect for those who like hassle-free / no frills.
I stumbled upon this one day on The Star about OCBC’s new HISA product and was pretty curious on what it offers. At that point, I was using OCBC 360 account as my main HISA that fits my lifestyle perfectly.
I was also looking for a secondary HISA (Buffer Account) to move from my current m2u savers as it only has 0.6% interest. This in particular is where I will store my cash dividends, extra income (e.g. angpow), additional month end savings, bonuses, etc, before it gets transferred to my investments.
This post will be building on my previous post about the best savings account in Malaysia, where I shared that I have 3 accounts and what are the available choices in Malaysia. This would technically be my 4th savings accounts and 2nd buffer account.
Who is Frank? Or rather… what?
Revealed in September alone, FRANK by OCBC is a new savings account by OCBC which is focused on being a mobile banking service – i.e. handle your savings accounts from the OCBC app.
We can still use / transfer funds online via the website but we will not be able to access the save / spend pot function (more on this below).
It is also promoted to be “able to enjoy the FD rates they normally see in traditional banking but without the usual penalties and restrictions”.
You may check out the website for more info.
How much is Frank giving out for interest rate?
Frank by OCBC has a unique function of splitting the account into a “save pot” and a “spend pot”.
Think of it as 2 virtual jars that you put your money into and can freely transfer between each other.
As of the date of this post, the interest rate is:
- Save pot = 1.8%
- Spend pot = 0.3%
Frank by OCBC calculates the interest daily on the account balance in these two pots at 9pm and will be paid out by month end.
This interest rate should go up when BNM revises the OPR upwards.
Ultimately the interest rate here is not as high as what StashAway Simple is providing for now, but I needed a 4th account anyway and there is no 3 business days delay in the transferring of funds in and out.
Save and spend pot?
Frank by OCBC introduces the save pot and spend pot function in this new product.
Save pot
Earns higher interest rate, but cannot spend / withdraw. This is akin to fixed deposit.
The difference? We can move this out from save pot to spend pot at any time via the OCBC mobile app.
Spend pot
Earns base interest rate of 0.3% and is free to spend any time.
Here’s an illustration of what it looks like on the app. It even tells you how much interest you will earn!
What does Frank want?
Or rather, are there other conditions?
As far as I can see, there isn’t any conditions other than the save / spend pot feature.
Minimum balance to maintain in the account is only the basic RM20.
Is there a debit card?
Yes there is. I opted to not have it because I am strongly against the use of debit card.
However, if anyone were to opt in for their debit card, it costs RM8 annually. You may then withdraw the cash from your spend pot at any ATM (OCBC or MEPS network).
An additional function of Frank by OCBC’s debit card is that any spending in foreign currency will be at 0% markup from OCBC.
Love it! Where do I sign up with Frank?
Signing up with Frank by OCBC is a 2-step process. I did it over 2 days.
Step 1
Sign up via the mobile app. Will need to fill up the basic details of name, address, yada yada. This is regardless of whether you are already an OCBC bank account holder.
Step 2
Proceed to an OCBC bank branch to verify the account using our IC.
There is a time limit of 90 days to do this before the application is cancelled.
I did mine at the OCBC bank branch in Great Eastern Mall on Jalan Ampang. I went there around 4pm and I was the only customer around. Apparently account matters is only handled before 4pm, so best to take note of this. The service staff was quite kind as she attended to me still.
She took out an iPad with a IC verification device attached to it. Passed my IC to them, verified my biometrics with thumb print, signed on some paper and done. The entire process took me around 5 – 10 minutes only!
On top of that, Great Easter Mall has free car park for the first hour.
Overall, it was a pleasant experience for me.
I just don’t know why Frank can’t integrate the verification part with my existing OCBC account. It feels like an additional step for existing customers.
Last Words.. Frank?
My main HISA will still be with OCBC 360 account as it fetches a higher interest rates with the same flexibility. The challenge is that some may find it a hassle to fulfill the 3 criteria it sets out on a monthly basis. It isn’t for me and perfectly fits into my lifestyle.
Frank by OCBC is an extra available option if anyone needs a hassle-free HISA.
My take is to prioritise the highest interest we can fetch based on what fits into our lifestyle. This means that although OCBC 360 Account / RHB Smart Account fetches a much higher interest rate, it may not suit our lifestyle to fetch the high interest rate. Frank can be easily used by all.
Referral Code Shoutout!
Use my Frank referral code V3O9NX if you’re opening an account to get RM20 cash reward immediately when you deposit a minimum of RM20 within 15 days of opening the account! You will need to download the OCBC app on your mobile to apply.
Refer to my referral links / promo codes page for more goodies HERE!
