DBS Multiplier Account and Portfolio Allocation (December 2019)
My Plan for DBS Multiplier Account
The new year starts with the big news that DBS Multiplier will be changing their terms and conditions with effect from 1st Feb 2020. DBS has decided to nerf the savings account so that it is now much harder to get higher interest rates on your account.
They are re-categorizing dividends from CDP into a new category called 'Income', together with salary credit. Those who have been using Singapore Savings Bond or regular dividends to clock the 'Investment' category will now have 1 less category. If you are left with 'Income' category plus 1 other category, your interest will now only be applicable to the first $25K instead of $50K.
 |
| Wef 1st Feb 2020 |
In the previous post, I mentioned that I am clocking my 3rd category by buying the online insurance so that I can get interest on my next $50K. One week later, DBS re-categorized the criteria and this effectively bring me back to only 2 categories (credit card and insurance), which means I can only get interest on my first $50K.
After some consideration and calculation, I decided that I will be subscribing to the minimum RSP required in order to clock the 3rd category (investment). The minimum amount required is $100 per month with sales charge of 0.5%, which is $0.50 per month. The interest I will be getting per month for the additional $50K is still more than that.
One of main reason why I am still sticking with DBS Multiplier is because that I am unable to spend $500 on credit card every month. If I am able to hit the $500 minimal spending, I would have switch to UOB One account. This essentially left me with not much option.
Separately, we have heard about the news that the new digital bank licences are available for application, and hopefully, this will bring some disruption to market with more attractive saving accounts made available for the public. I personally will be rooting for Grab and Singtel due to the introduction of the GrabPay MasterCard which I am using it frequently now.
Stock Allocation
There was no transaction for the month of December 2019 as I was in holiday mood. I was looking at the stock less frequently, and as a result, there was no urge to buy anything.
Portfolio Allocation
InvestingNote Profile: @SingularityTruth
Facebook Page: @SingularityTruth
If you are using GrabPay MasterCard, why not consider 5x transactions of $100 each on UOB One card for consecutive 3 months and earn the 8.33% rebate. It also satisfy the UOB One account criteria for 75k balance. Not sure when they will change the terms though, it's been a while since that happened
ReplyDeleteThanks. I have read a few articles on hitting minimum spending by topping up payment wallets, but I think eventually it boils down to individual spending habits. If you are not spending $500 every month, you could end up just locking more and more cash in the payment wallets.
Delete