facebookDBS will cut interest rates on flagship Multiplier savings account again from Aug 1, amid a low interest rate environment and macro uncertainties. Will this push you to consider other banks instead? - Seedly

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Clara Ng

Clara Ng

Level 12·Community Manager at Seedly

02 Jul 2020

Saving Hacks

DBS will cut interest rates on flagship Multiplier savings account again from Aug 1, amid a low interest rate environment and macro uncertainties. Will this push you to consider other banks instead?

Or will you stick with DBS despite the changes, considering that other banks might do the same amid the bleak economic outlook.

Discussion (4)

What are your thoughts?

Elijah Lee

Elijah Lee

02 Jul 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi Clara,

The hassle involved with switching accounts every time a bank changes interest rate is probably going to deter me from doing so. I'm with OCBC by the way.

To me, even if OCBC follows suit and cuts again, I have no problem meeting the criteria for extra interest (Just need to credit salary). Since time is money, trying to figure out every 2-3 months which bank would give a better interest each time and then going through the paperwork with HR, and waiting for approval, is probably going to detract me from my job, and all that for an extra $10-$20 a month maybe? Doesn't seem worth it to me. I'd rather spend that time analyzing what's my next step in my investment plan, like which stock I'd like to add on to my portfolio, for example.

Clara Ng

Clara Ng

02 Jul 2020

Level 12·Community Manager at Seedly

Singapore's largest lender DBS will again this year cut rates on its flagship deposit account from Aug 1 amid a low interest rate environment and macro uncertainties.

This comes two months after a set of rate revisions for the DBS Multiplier account that took effect on May 1.

The DBS Multiplier account offers customers tiered interest rates that is stepped up if customers have more transactions with the bank, and transact in larger amounts. The determined rate is then applied on the account balance.

The latest changes affect interest rates that are applied to account balances of up to the first $50,000.

For example, when customers credit an income stream - defined as a salary, dividends, or both - into the Multiplier account and make just one more DBS transaction in an eligible category to total between $2,000 and $2,500 per month in transaction value, the interest rate for the first $25,000 will be halved to 0.7 per cent per annum from Aug 1, from 1.4 per cent per annum currently. It was previously 1.55 per cent per annum before May 1.

Interest payouts for amounts where customers credit income and make two more DBS transactions in two separate eligible categories, will similarly be cut. Rates will be reduced across the board from Aug 1, for the first $50,000 in the account balance.

For example, if a customer credits an income and makes two other transactions that add up to between $5,000 and $15,000, the interest rate applied on the first $50,000 will be reduced to 1.8 per cent per annum, from 2.2 per cent per annum.

DBS also expanded the types of qualifying dividends that count as an income stream. For example, they will accept dividends of equities listed in all markets, and the bank's unit trusts. The bank will also accept dividends credited into a Supplementary Retirement Scheme (SRS) account, and in a CPF Investment Account.

Earlier in June, DBS's banking peers OCBC and Standard Chartered also announced plans to slash rates on their respective savings accounts from July 1.

Source: The Straits Times

Tan Wei Ming

Tan Wei Ming

02 Jul 2020

Level 10·Founder and Writer at Frugal Youth Invests

For myself, I think I will try to compare between different savings account to see if I can eek out ...

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