Why I Switched to DBS Multiplier Account

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.

The clause “1% per year Earn this extra bonus on the first S$70,000 if your account balance is S$200,000 and above.” is a killer as I do not maintain an account balance of S$200,000 in my savings account. As a wise investor, if I had $200,000, I will invest part of it in stocks, REITs or bonds for higher return rather than to earn the petite additional 1%. My currently effective interest rate for my OCBC 360 account is only 1.8% and at times, I do not qualify for the credit card minimum spend of S$500. Besides dining cash back, there are also limited benefits for the OCBC 365 credit card.

Having said the above, I have recently switched to the DBS Multiplier Account after reading Heartland Boy’s review.

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?

2 comments

FinancialHorse says:
March 11, 2018 at 10:59 am
Interesting. I use the UOB One as it gives a higher interest (2.43% on first S$50,000).
But you did raise a good point that the DBS Multiplier is easier to achieve on a month to month basis, especially if one fails to meet the UOB S$500 minimum spend for a particular month.
Anyway, I wrote a similar article taking a look at the accounts, and while I prefer UOB One, I can see the merits of switching to DBS Multiplier down the road. (Related: http://financialhorse.com/cash-buffer/ )
1. My Sweet Retirement says:
  March 12, 2018 at 9:21 pm
  Hi Financial Horse, thanks for sharing. The minimum spend of S$500 is difficult to meet sometimes in certain months.

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