DBS Multiplier Account

UPDATE: As of 1 August 2020, DBS will once again be changing their interest rates. Interest Rates that have been affected are within the band of income + spending in 1 category, and income + spending in 2 categories, on eligible transactions from S$2,000 onwards. Additionally, DBS Multiplier Account has also added new eligible dividends to the Income criteria. These changes will be further explained in the next section.

Newest Interest Rates for DBS Multiplier Savings Account

With effect from 1 August 2020

DBS will begin charging its revised interest rates for the DBS Multiplier Savings Account again with effect from 1 August 2020. This change comes 2 months after the previous May 2020 revision.

1. Interest rates for Income + transactions changes

The DBS Multiplier Interest Rates change in August 2020 will affect the of bonus interest rates of:

1. Income + Transactions in 1 category, and
2. Income + Transactions in 2 categories

According to DBS, the eligible categories still remain as any of the following:

1. Credit Card Spending
2. Home Loan Instalments
3. Insurance
4. Investments

2. Dividend Credit definition changes

Secondly, DBS Multiplier has also revised its definition of eligible dividends.

Eligible Dividends now include:

1. Central Depository Pte Ltd (CDP)
2. DBS Vickers (All Markets) - initially only SGX
3. DBS Online Equity Trading (OET, All Markets) - initially SGX only
4. DBS Unit Trysts - NEW
5. DBS Online Funds Investing - NEW
6. DBS Invest-Saver - NEW

Dividends can now be credited into:

1. Personal or joint DBS/POSB Savings/Current accounts
2. Supplementary Retirement Scheme (SRS) Account - NEW
3. CPF Investment Account (CPFIA) - NEW

Read more about DBS Multiplier's changes on Seedly blog where we discuss the changes in-depth

Updated Interest Rates for DBS Multiplier Account 2020

How does DBS Multiplier Work?

Firstly, for DBS Multiplier to work, you need to regularly credit your salary (or dividend credits).

Secondly, you need to transact in One or more of their set categories of Credit Card Spend, Home Loan Instalments, Insurance or Investments. Then, DBS Multiplier will reward you based on 2 aspects:

• How many transaction categories you fulfil and
• The total transaction amount

The categories are credit card spend, home loan instalment, insurance, investments. You will receive higher interest when you credit your income (salary and/or dividends) and transact in one or more of the aforementioned categories.

Then, complete eligible transactions that fall under at least one of these 4 categories:

i. Credit Card Spending - eligible transactions only

ii. Home Loan Instalments - monthly instalments both cash and CPF included

iii. Insurance - selected regular premium policies

iv. Investments - new DBS Invest-Saver, monthly contribution of Invest-Saver plan for Unit Trusts or ETFs.

1. When you fulfil the income category + 1 transaction category, for the 1st S$25,000

Monthly transactions and relative bonus interest

• 0.70% p.a. bonus for monthly transactions of S$2,000 to S$2,499
• 0.90% p.a. bonus for monthly transactions of S$2,500 to S$4,999
• 1.10% p.a. bonus for monthly transactions of S$5,000 to S$14,999
• 1.20% p.a. bonus for monthly transactions of S$15,000 to S$29,999
• 1.30% p.a. bonus for monthly transactions of above S$30,000

*Bonus interest only applies to the 1st S$25,000

2. Fulfil income category + 2 transaction categories, for the 1st S$50,000

Monthly transactions and relative bonus interest

• 1.30% p.a. bonus for monthly transactions of S$2,000 to S$2,499
• 1.50% p.a. bonus for monthly transactions of S$2,500 to S$4,999
• 1.80% p.a. bonus for monthly transactions of S$5,000 to S$14,999
• 1.90% p.a. bonus for monthly transactions of S$15,000 to S$29,999
• 2.80% p.a. bonus for monthly transactions of above S$30,000

*Bonus interest only applies to the 1st S$50,000 in your Multiplier account

3. Fulfil income category + fulfil 3 transaction categories, for the next S$50,000

Monthly transactions and relative bonus interest

• 2.00% p.a. bonus for monthly transactions of S$2,000 to S$2,499
• 2.20% p.a. bonus for monthly transactions of S$2,500 to S$4,999
• 2.40% p.a. bonus for monthly transactions of S$5,000 to S$14,999
• 2.50% p.a. bonus for monthly transactions of S$15,000 to S$29,999
• 3.80% p.a. bonus for monthly transactions of above S$30,000

*Bonus interest only applies to the next S$50,000 in your Multiplier account

Do note that there is a balance cap for Income + transactions in 1 category. DBS is trying to encourage account holders to unlock more categories other than the usual credit card spend (and the mandatory income category), whether by taking a home loan, insurance or using their investment offerings.

How to maximise the interest rate for DBS Multiplier Savings Account?

The bonus interest rate per annum for DBS Multiplier account comes with a few criteria. As mentioned. the more categories and greater amounts transacted will help you gain higher bonus interest rates.

For your spending to count towards obtaining bonus interest rates, you have to first fulfil the income category either by salary crediting via GIRO or receiving investment dividends.

Secondly, you are required to spend at least S$2,000 per month to qualify for the first bonus rate tier above 0.05%

Thirdly, it will be more ideal to transact in more than 1 category as within the same band of amount transacted of example ≥S$2,000 to <S$2,500, the bonus rates for spending in 2 categories is almost doubled that of the bonus interests for 1 category.

Want to know how DBS Multiplier compares with other savings accounts? Here's a compilation of The Best Savings Accounts in 2020

Is It Still Worth Opening A DBS Multiplier Account?

From our blog analysis, the newly added definitions to the dividend crediting means more markets and accounts will now be eligible to fulfil the Income category. For example, dividends from the Hong Kong market credited into your DBS account can now qualify.

This newest change can aid your account balance to hit the higher tier. This would be beneficial for full-time investors or retirees who have the DBS Multiplier Account and don’t have a salary coming in each month.

However, increasing your account balance without increasing spending and categories will limit your bonus rate earnings.

We will refrain from giving further comparisons as we believe that with the newest rate revisions, the pros of DBS Multiplier will become highly limited.

We are also anticipating other savings accounts to follow suit. As such, we will hold off making verdicts until the dust has settled.

Other Features of DBS Multiplier Savings Account:

• Rewards you on your credit card spend
• Multi-currency credit card capabilities
• Easy and convenient to track interest earned and past eligible transactions
• No foreign exchange fees
• Savings account interest calculator

Terms and fees for DBS Multiplier Account

• No initial deposit
• No monthly account fee
• Minimum Average Daily Balance: S$3,000 (negligible for first-time account holders who apply online)
• Fall below fee: S$5 (waived for customers up to 29)
• Early closure fee: S$30 if below 6 months

Eligibility: who can apply for a DBS Multiplier Savings Account?

• Citizenship status: Singaporeans, PRs and foreigners
• Minimum age to open an account: 18 years old

How to apply for DBS Multiplier?

• Apply online here (with or without MyInfo) or
• visit DBS branches