Interest Rate Series (DBS Multiplier) [2.5 out of 5 Burger Patties]

As on 4 November 2022

On 4 November 2022, 3 working days after OCBC rolled out their new interest rate on their flagship 360 accounts, DBS followed up with an email that the DBS Multiplier has increased from 3.5% to 4.1%. The balance cap amount is also increased to S$100,000

The Multiplier account has always been proportioned by the transaction amount.

below S$2,000

S$2,000 to below S$2,500

S$2,500 to below S$5,000

S$5,000 to below S$15,000

S$15,000 to below S$30,000

Above S$30,000

The next layer of categories to fulfil will be the number of categories. They are known to be:

1. Salary/Dividends/SGFinDex

The Salary portion has to be a GIRO transaction with code “SAL” or “PAY”, which seems pretty strict given that there are increasing numbers of the next generation in the ‘gig economy’

For dividend crediting, these eligible dividend has to be from CDP, DBS Vickers Securities, DBS Online Equity Trading, DBS Unit Trusts, DBS Online Funds Investing and Invest-Saver (Promotion their own eco-system)

Connecting and sharing financial information from SGFinDex to NAV Planner (I would think one needs to do this on a monthly basis

2. Credit Card Spend

For the monthly card spend, it has to be on any DBS credit card and has to be eligible spending. Eligible will be the usual suspects and it will be very much dependent on the MCC codes.

3. Home Loan Installment

Home Loan financing has to be from DBS or POSB (New or Refinancing). The eligible amount will be from the monthly home loan instalment amount.

4. Insurance

Similar to my previous post on insurance and investment in these high-yield accounts. These are usually valid for a limited period and interest rates are always subject to changes. Further, only selected insurance are eligible.

5. Investment

Nothing much to comment on here. This section will be pretty hard for most people to fulfil.

Additional option: The PayLah! Retail Spend. Honestly, don’t seem like a good deal to me.

The ideal interest rate will be between 0.9% to 2,5%. Frankly, nothing much has changed though and I don’t think it is even worth announcing via their communication channels. I feel like there wasn’t even much thought placed into it. I just felt like it isn’t any effort to compete with these changes. With the most recent 0.75 bps increase by the US Feds, this is not anything competitive and not quite worth looking into for now.

For more information, check the link here: DBS Multiplier Calculator

Conclusion

Nothing worth looking at for now. Till next time.

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