Previously DBS tease about the new multiplier account with a cute rabbit. There is a previous write up on what could be the possible revised changes and the new T&C. The write up can be read here.
What has changed?
- You will be able to earn interest rate from 1.55% to 3.8% per annual.
- Account balance increased to $100,000
Salary and Spend
No minimum amount needed for any category as long as your monthly total eligible transactions add up to S$2,000 or more.
The number of categories remains the same with Salary as a compulsory requirement and 4 other categories. Below table showing how much interest you will receive base on your eligible spending per month and account balance in Multiplier account.
There is a calculator on DBS website where you can clink and play around and you will have the results on how much interest you will be earning per annual. I tried with what an average salary worker scenario and the results I get is 2.2% per annual.
DBS has a templete for you to email your HR 🙂 so nice of DBS
- Salary must be credited via GIRO, with transaction reference codes ‘SAL’ or ‘PAY’.
- This is reflected as either ‘GIRO SALARY’ or ‘SALARY’ in the main transaction description in your Statement of Account
POSB/DBS credit card spend
- Monthly spend consists of retail/cash advance transactions posted within the 1st & last calendar day
- Eligible transactions across main cards & supplementary cards are accorded to the main cardholder
POSB/DBS home loan
- Monthly installment (s) due on your home loan(s) with DBS/POSB will be recognized
- Cash and Central Provision Fund (CPF) components included
In short, those insurance plans that are unwriting by POSB/DBS will be eligible. The full list can check from DBS Mulpliter website.
Investment with POSB/DBS
This is a little interesting as there are many ways to trigger this category. without much effort.
Credit your dividends to any DBS/POSB deposit account
Those investing with Reits or dividends shares shouldn’t have this issue but need to plan on how to get dividends every month without fail (this can be quite tricky as companies might change their dividends policy like recently DBS changed the dividends from semi-annual to quarterly).
Luckily there is an alternative way and you only need to invest $500 over a consecutive period of 6 months. The method is called SSB Bond Ladder. How does this work? OK, SSB is semi-annual interest payout so If you apply for it for 6 months, you will have dividends credited into your DBS/POSB account.
Purchase a Unit Trust via DBS/POSB
For point numnber 3, you can purchase G3B and ABF and switch around every 12 months. To me these 2 are the safest you can buy and hold shall you need to increase your total transaction.
- Valid for Unit Trust Lump Sum Investments, Unit Trust Regular Savings Plan and POSB Invest-Saver purchased after opening your Multiplier Account
- The investment amount of your Unit Trust Lump Sum Investment will be recognised after you free-look/cancellation period
- Monthly contribution amount for Unit Trust Regular Savings Plan and/or POSB Invest-Saver will be recognised for the first 12 consecutive contributions per investment fund
- Purchase(s) must be made in cash, not using funds from your CPF or Supplimentary Retirement Scheme (SRS) account
Trade in equities online via DBS
- Fully settled “BUY” equity trades via Vickers Online will be recognised
- For transactions via DBS Vickers online trading platforms, only the primary account holder will be accorded the transaction amount
The increase of account balance cap from $50,000 to $100,000 is much welcome for additional interest but do note that SDIC only covers up to $75,000. This account is good for those with excess cash and has more than $50,000 holding with DBS/POSB to fully benefits from the interests. There is another product from POSB which I believe not many people know is
POSB Cashback Bonus. This product works the same way as Multiplier but It doesn’t require you to have money In your account. For those that just started working, perhaps can have a look at it first before committing to Multiplier account