facebookShould I do RSP for STI ETF ($100/mth) to gain higher interest rate with DBS multiplier? - Seedly

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Anonymous

09 Jan 2020

Saving Hacks

Should I do RSP for STI ETF ($100/mth) to gain higher interest rate with DBS multiplier?

Currently using DBS multiplier - salary and transact in 1 category. With new changes, I'm thinking if it's worth it to invest $100/mth using RSP so I can transact in additional category and earn higher interest rate on the first $50,000 in multiplier account. Would you recommend? Thanks.

Discussion (3)

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Elijah Lee

09 Jan 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

I would probabl ynot recommend that. The fees on $100/mth might outweight whatever interest benefits you get. This is like buying something that is on sale because it is on sale, and not because you need it.

Also, do note that fulfilling the criteria for the investments category is only going to be recognised for the first 12 months, and after that it will no longer count. You should invest because you want to invest, and not because it will lead to a higher interest on your savings. Getting a higher interest on your savings as a by product of investing would be a better way to see it.

This kind of mentality akin to buying insurance becos your insurance agent is going to give you shopping vouches/ipad etc

When your objective of investment is to get "freebies" which is based on the discretionary of the bank's policies, usually you are losing out more in terms of opportunity cost (the potential returns you could have gotten by investing properly!)

Gabriel Tham

09 Jan 2020

Tag Team Member at Kenichi Tag Team

Is your interest earned worth it? If your interest just single digit then probably not worth.

And d...

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