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DBS Multiplier

Asked by Anonymous

Asked on 06 Aug 2019

Maximise DBS multiplier interest?

I am earning a take home pay of $1600/mth. What are some things I can do to reach at least the $2000 tier so that I can maximise the DBS Multiplier interest? My income doesn’t qualify for any credit cards and I intend to buy SSBs but the interest they pay isn’t enough to reach $2000 too. Any help?

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Updated on 22 Aug 2019

Hi As your salary credit is 1.6k and no credit card,the rest of of category is short term and it's not worth doing everything to get the DBS mulplier interest. You're better of with A+B below:

A. Save into the CIMB fast saver and earn 1% (need to maintain min 1k inside and if early close penalties is $50)

I've check using Seedly best savings account calculator:

https://seedly.sg/tools/savings-account-calculator eg. Assume u have 4k savings, monthly credit salary 1.6k into the account and not withdrawal, you can earn $40 interest per year. Of course you also need to live so the amount would be lessor, but is the best suited plan for your current situations. B. After that monthly buy SSB via POSB / DBS ATM of the amount you could. This will makes it like a bond ladder (LIke multiple investment and matures at different date so that you can have $ every payout month when it matures) . See:

With A+B, is much better interest that DBS multiplier and much easier for achieve for your case. Hope it helps! Happy Savings! Ref:

CIMB Fast saver link:

https://www.cimbbank.com.sg/en/personal/products/accounts/savings-accounts/cimb-fastsaver-account.html

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HC Tang
HC Tang

22 Aug 2019

Yes every transaction there's a $2 fee. The thing about SSB is that the interest is only worth it if you hold it for at least 5 to 10 year. If you are absolutely sure that before the 5 years you don't need the $, then go ahead and buy in lump sum. Otherwise you will risk because of emergency need to withdraw earlier and lose the higher interest and defeat the whole purpose.
HC Tang
HC Tang

22 Aug 2019

That's why we usually suggest invest in Bond ladder manner as (B) so that when it matures in monthly, you get $ every month. For more info on SSB , see: https://blog.moneysmart.sg/invest/singapore-savings-bonds-review/