New DBS Multiplier. Great Disappointment.
The first thing I check when I woke this morning was the new changes in DBS Multiplier account. It is with great disappointment that it remains status quo, at least for me. I was hoping that DBS Multiplier will up the cap of $50,000 to $75,000 after SDIC increases the amount insured by banks, but that was not the case.
In summary, if you do not have transactions in salary + 3 other categories (credit card/ investment/ insurance/ home loan), the new changes do not affect you.
DBS Multiplier interest is now applicable up to $100,000. But the catch is the additional interest is only applicable to next $50,000 if you have transactions in at least 3 categories excluding salary. For the others, the interest is still applicable on the first $50,000 only. The following is an example for more than $30,000 eligible transactions.
The new changes do not affect majority of the users who are only hitting 2 categories. The 2 easiest categories to achieve are credit card spending and investment. For credit card spending, you just need to spend at least $1, and investment can be achieved by using Singapore Savings Bond.
If you are thinking of getting another category, you are left with insurance and housing loan. For insurance, only the first 12 month premiums are eligible for DBS Multiplier account, so it is not a long term category. As for housing loan, it is not something you can achieve unless you are going to buy a house soon. It seems that there is not much choice for majority of the users to achieve the 3rd category.
Luckily, the best 'savings' account in my opinion is still the Singapore Savings Bond. No salary credit, no credit card spending, no requirements. The next available $50,000 I have would go directly to SSBs instead of DBS.
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I agree the best 'savings' account is still the Singapore Savings Bond. Nothing can beat it at present.
ReplyDeleteI think the next best savings account after SSB is citibank maxigain account.
ReplyDeleteIt is difficult to enjoy the new top tier of interest (3.8%). But for my wife & I, after we were tipped off by a DBS staff (no less) about creating a joint account and crediting our salaries into it, we should be able to qualify for the top tier interest (3.8%) for six or seven months in a year. That would be when our total monthly transactions cross the $30,000, comprising our salaries, our housing loan, credit card spend and dividend income. That would earn us roughly $600 a month (combined) in those six to seven months. On the remaing 5 to 6 months, we can look forward to 2.5% interest or $400 per month (combined). Honestly, this is better than some of the dividends I am receiving from my shares.
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