OCBC 360 account used to be the best savings account in town giving you a maximum yield of 3.25% per year until they decided to revise their criteria on the interest rates. You can read more about it here OCBC 360 Account Makes Earning Additional Interest More and So Complicated. Other banks such as UOB has came up their own version of step up interest accounts using the similar concept and the idea is no longer fresh and new.
DBS bank seems to understand Singaporeans pain points and they have done well to come up with a savings account to suit Singaporean needs.
In simple terms, the main selling points of the DBS Multiplier Account are
- No minimum salary credit
- No minimum credit card spend
However, do note that you only get to enjoy the interest rate on your first S$50,000. This is ok for me as hoarding too much cash on hand is not my style.
Here is an illustration with DBS website. As you can see, by crediting a salary of S$2,000 and only spending S$1 on any of DBS or POSB credit card, you get to earn an interest rate of 1.55% (per annum).
The best part is that you can get to earn the “Investments with DBS/POSB” if you also deposit your dividends from stocks to DBS or POSB account. That will give you an interest rate of 1.8% (per annum).
Here is a breakdown of the interest rates. Let us see if DBS bank will downgrade their criteria over time.
I do hope DBS Multiplier is also available for joint accounts as I have a joint account with my spouse and DBS Multiplier is available only for personal accounts.
I have done the switch from OCBC 360 to DBS Multiplier Account, have you?