This is probably something not new as other financial bloggers have blogged about how to maximize the interest rate for your DBS Multiplier account with the Singapore Savings Bonds.
The hack that I am going to share is that if you have a DBS Multiplier account, you get additional interest if you deposit your dividends from stocks to your DBS or POSB account. The payout from Singapore Savings Bonds into your DBS or POSB account qualify as well under the “Investments with DBS/POSB”.
The minimum amount for Singapore Savings Bonds is S$500 with a one time fee of S$2. The effective interest rate for Singapore Savings Bonds for May if you held it for ten years is 2.39% which is pretty attractive to me. (Read more: May 2018 Singapore Savings Bonds is 2.39%)
Below are the Singapore Savings Bonds that I have subscribed for. “Yes” means that the bond will be paying out in that month. Basically, Singapore Savings Bonds pay out every six months. I only have to subscribe to June, July and August Singapore Savings Bonds and I will be getting more interest from my DBS Multiplier account every month.
Without Investments With DBS/POSB
With Investments With DBS/POSB
With this Singapore Savings Bonds hack, I get to enjoy 1.8 % interest (per annum) with my DBS Multiplier account.