With all the latest revisions to the savings accounts interest rates in June 2020, which will you choose - DBS Multiplier vs UOB ONE vs OCBC 360?

Hi Anon,

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It really depends on your cashflow pattern. For example, DBS Multiplier works on an aggregate transaction count every month. On the other hand, UOB One requires you to spend S$500 on an UOB card in order to unlock the higher interest tier.

Since we all have different cashflow pattern, there isn't one that is best for everyone. For me, I prefer to stay put with what I have and focus on bigger goals in life, rather than to chase a minute interest rate difference.

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Hi anon,

The change in interest rate, while not welcome, will not really bother me too much.

Changing your bank account will inevitably cause a number of headaches, such as:

• Changing of salary crediting instructions. A one-off thing, but still a hassle. And are you going to do it again if interest rates change 6 months down the road?

• Changing of criteria. I am currently getting interest on the OCBC 360 just by crediting salary and stepping up my account balance. By changing to say, UOB, I would have to spend or have 3 GIRO transactions, and if I change to DBS, I also need to spend, loan or invest via DBS. We should invest or spend because we need to, and not because we want to unlock more interest by jumping through yet another hoop. This is akin to buying a policy for a free toaster or shopping vouchers only to find that the policy wasn't really suitable in the first place.

I am currently on the OCBC 360. They're lower the interest rate by more than half in the next revision. If I were to maximize the salary crediting and step up of $500/mth on the maximum eligible account balance of $70K, I'll earn $1470/yr. With the new rates, it will be $840/yr. That's about $50/mth less. Is this going to significantly impact me? Probably not. There are ways to squeeze an extra $50/mth in savings, and there are also ways to create a passive income stream of $50/mth to make up for this (you need $15K capital and 4% yield to do this, which is reasonable).

Of course, if you already are spending sufficiently on, say, a UOB card, then moving from OCBC to UOB might be a welcome move. But in this case you should already have your savings account with UOB already. Or, if your home loan for the next 15 years is with DBS, then you should already be on the multiplier account and probably stay there for the foreseeable future regardless of the changes in interest.

So in the end, I'm going to stick with my OCBC 360 and just focus on other areas of my finances.

As HC mentioned, for now theres singlife @ 2.5% p.a. for first 10k. Next, if you are below age 26, can get SCB Jumpstart for 2% p.a. for first 20k.

The good thing about these 2 accounts is theres no requirements to meet. And you will get interest monthly with no lock in.

For High Interest Savings Accounts, I'm using DBS Multiplier. Theres this 'hack' to unlock about 2 - 2.2% p.a. for first 50k / first 100k.

• Salary ($2000)
• Credits Card ($500)
• Investment (Monthly DCA in STI ETF using Invest Saver, $100)
• If you have more than 50k, can add insurance category. Cancercare is the cheapest eligible add on. Roughly $10-$20/mth depending on age.
• Total eligible transaction: $2600+ (2%-2.2%)

However, I feel that these interest rates may decreases over the next year if the economy is bad. The bank would have difficulty sustaining the high interest if the loans take up rate is low. Thus be prepared to move your money around to get higher interest.