The DBS Multiplier programme has been one of my favourite savings programmes because they offer one of the highest interest rates on a savings account locally (capped at $50k), and it is not too difficult to achieve the requirements – usually with a salary credit, credit card spend, home loan or investments in unit trusts/equities. The above table illustrates the potential interest rates which was up to 2.68% before the programme was recently revamped from 1 Nov 2017.
The 2nd table illustrates the new updated interest rates and requirements. What are the changes compared to the past?
- Need for salary credit but no minimum amount
Previously, there was no requirement to credit your salary, and hence someone who trades shares regularly using DBS Vickers may actually qualify for the highest tier of either 2.08% or 2.68%. Now, the basic requirement is a salary credit via GIRO under the codes of “SAL” or “PAY” but there is no minimum amount required! But do note that you do NOT need to credit your salary into the DBS Multiplier – any accounts with DBS/POSB will do!
2. Minimum eligible transactions reduced from $7500 to >$2000
It used to be harder to achieve the minimum tier for DBS Multiplier as not everyone has a high enough salary or spends enough money on their credit cards. Now, the minimum eligible amount is just above $2000, so everyone has a chance to enjoy this higher tier interest!
3. The highest tier has increased to >$30000
Now, while there are still 6 tiers in this programme, the upper limit has increased to >$30k per month, making it harder to hit the highest interest rate of 3.5%!
4. Highest interest rate of 3.5%
As stated previously, the highest interest rate that can be accrued under this programme is 3.5%, which is one of the best in the market for a risk free savings account without any lock-in period!
5. More work for those who used to earn 2.68% interest
Those who had transactions of >$20k/month and had 3 transactions or more could achieve 2.68% interest rate easily under the old scheme. Now, that would be downgraded to 2.3%, unless the earning or spending increases by 50% to hit $30k
6. Higher interest rates for the new account holders or those in the lower tiers
Conversely, those who used to hit $7.5k and make 2 transactions enjoyed 1.08% p.a. interest, can now enjoy 1.9% p.a. once they credit their salary and make another transaction, hence closing the gap between the high and low tiers!
Overall, the programme has made changes for the greater good, unlike some other programmes like OCBC 360 where requirements were stricter and interest rates dipped. Do check out the full T&Cs which are available here.