Choosing the Best Digital Bank: GXBank, AEON Bank, or Boost Bank?

Malaysia now has its first three digital banks, each with distinct offerings, but how do you choose the right digital bank for you?

Let’s explore what each bank offers in more detail to help you determine which might be the best fit for you.

Digital Bank #1: GXBank – Ideal for Spending

GXBank, a consortium led by Grab, was the first digital bank to launch in Malaysia. It primarily targets local micro-SMEs (MSMEs) and underserved segments like gig economy workers. After thorough beta-testing among its employees, GXBank is gradually expanding its services to a broader user base.

Products and Services:

• Quick Account Setup: Open a savings account in just 4 minutes using MyKad.
• Round-the-Clock Customer Support: Available 24/7 to assist you.
• Enhanced Security: Real-time detection and prevention of unauthorized access with a 1 user:1 device policy.
• Unlimited Cashback Debit Card: Earn unlimited 1% cashback on your spending.

Key Features:

• Interest Rate: 3.0% p.a. daily interest.
• ATM Fees: Waived until December 31, 2024, for all MEPS ATMs nationwide.
• Rewards: 1.5x GrabRewards points for Grab services and shopping at Jaya Grocer.
• DuitNow QR Transfer: Supported.

Advantages:

• Spending Benefits: The unlimited 1% cashback and integration with GrabRewards make GXBank attractive for frequent Grab users and shoppers at Jaya Grocer.
• No ATM Fees: Users can withdraw money from any MEPS ATM without incurring fees, enhancing convenience.
• Fast Account Setup: The quick and easy account setup process is a significant plus for new users.

Disadvantages:

• Lower Interest Rate: Compared to other digital banks, GXBank offers a lower interest rate on savings.
• Spending Focus: While great for spenders, it may not be the best option for those prioritizing savings.
  

Digital Bank #2: AEON Bank – Ideal for Savings

AEON Bank, a subsidiary of AEON Financial Service, is Malaysia’s first Islamic digital bank. It offers Sharia-compliant financial services, adhering to Islamic finance principles.

Products and Services:

• Immediate Access: Open Sharia-compliant savings accounts with competitive profit rates.
• Savings Pots: Set savings goals for various needs like vacations, education, and more.
• Budgeting Tools: Smart tools that eliminate the need for spreadsheets.
• DuitNow Integration: For fast and easy transfers.

Key Features:

• Profit Rate: 3.88% p.a. daily interest, promotional rate until August 31, 2024.
• ATM Fees: RM1 fee.
• Rewards: 3x AEON Points collection with debit card spending.
• DuitNow QR Transfer: Supported.

Advantages:

• High Returns: AEON Bank offers the highest returns on savings with a promotional profit rate of 3.88% p.a.
• Sharia-Compliant: Ideal for those seeking Islamic banking options.
• Rewards for AEON Shoppers: Collect 3x AEON Points on spending, adding extra value for AEON customers.

Disadvantages:

• ATM Fees: Unlike GXBank, AEON Bank charges a fee for ATM withdrawals.
  

Digital Bank #3: Boost Bank – Ideal for Financial Inclusion

Boost Bank, a joint venture between fintech company Boost and RHB Banking Group, aims to provide greater financial inclusion, particularly for the unbanked and underserved segments. It is Malaysia’s first homegrown digital bank.

Products and Services:

• Savings Accounts: Encourages saving with an interest rate of up to 3.6% p.a. for the promotional period until August 31, 2024.
• Savings Jar: Set and achieve realistic money goals.
• Debit Card: Upcoming offering with perks and rewards for spending.
• Financial Inclusion: Open an account even without a traditional bank account.

Key Features:

• Interest Rate: Up to 3.6% p.a. (depending on your account rank).
• ATM Fees: N/A.
• Rewards: 3x Boost Stars for spending with Boost eWallet.
• DuitNow QR Transfer: Not directly supported on the app; use Boost eWallet.

Advantages:

• Inclusive Banking: Ideal for those without traditional bank accounts, offering easy online account opening.
• Promotional Interest Rate: Attractive interest rate of up to 3.6% p.a. for savings.
• Boost eWallet Integration: Rewards and perks for Boost eWallet users, enhancing the digital banking experience.

Disadvantages:

• No Debit Card Yet: Currently lacks a debit card, although one is planned.
  
  

Conclusion: Which Bank is Right for You?

Selecting the best digital bank depends on your individual preferences and lifestyle. Here’s a concise summary to guide your decision:

• GXBank: Ideal for loyal Grab users, offering 1.5x GrabRewards points on Grab services and at Jaya Grocer. This bank provides excellent rewards for frequent spenders.
• AEON Bank: Perfect for regular AEON shoppers, allowing you to earn 3x AEON points with their Debit Card and offering a 3,000 AEON points bonus during the introductory campaign. This bank is best for those seeking high returns and Sharia-compliant banking.
• Boost Bank: Optimal for frequent Boost eWallet users, providing 3x Boost Stars for Platinum President users. This bank excels in financial inclusion and offers a fully digital banking experience.

Each of these banks offers unique benefits, and it’s worth trying all three to see which one suits you best.

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Also read: BNM Awards Digital Banking Licences To 5 Digital Banks, Here’s The Full List