Is it worth investing the minimum RSP sum of $100 to get a higher interest on DBS Multiplier?

Hi anon,

Generally, you should do something because it is something suitable for you, and not because it helps you to unlock other criteria, etc.

You have to work out the maths in this case. What are your costs involved when you do a $100/mth RSP(there will be some costs)? Will the additional interest earned by unlocking this bonus category actually offset your cost of the RSP? If it doesn't break even, then you shouldn't be doing it.

This should hold true regardless of what the interest rates are, or what the criteria is. Would you buy an insurance policy for a free toaster, some vouchers, and 12 months of added interest? No one should. You buy the policy because you needed the coverage. Everything else is a bonus.

The most important thing is whether you’re working towards the ‘goal’ you want. Everyone is different. If you want to own a small pie of the big 30 companies in singapore and wish to park your money in a high yield savings account, then what you described would be suitable. However, do take note that investing in e.g. Nikko AM STI ETF will only be accounted for 12 months only in Multiplier’s ‘investment’ category. Subsequently you will have to switch to a different fund.

A good question to asm youself is: If DBS suddenly announces that the interest rate will drop even further, will you still want to invest RSP?