Those with DBS Multiplier account would have received an email from DBS regarding the changes to their account with effect from 1st Feb 2020.
DBS recently just made changes during May day for the better but now, It’s nowhere better for many.
What Are The Changes
Revision of terms for DBS Multiplier Account
Change of salary credit to Income category whereby the salary will remain as same for Giro with transaction code ‘SAL’ or ‘PAY’. Point ii will be cover below.
Dividend credit from CDP no longer category as an investment and instead will be park under Income. By doing so this affects many peoples that built their SSB Bond Ladder.
For the killer, balance cap for Salary Credit (now mandatory “Income” criteria) + transactions in 1 category will have higher interest applied on balances up to S$25,000. In short, DBS is forcing its customers to unlock more categories wither by taking a home loan, insurance or use their platform to invest.
By doing so, I’m sure many customers will maintain 25k in their Multiplier account and park their funds elsewhere.
The simplest way to unlock investment category will be buying Regular Savings Plan under Invest-Saver. However, It will record for 12 months and from 13th months onwards It won’t consider as an investment anymore.
What customers can do is to switch the funds every 12 months, my suggestion will be 12 months G3B and 12 months ABF. These 2 funds are considered stable and the price won’t be difference by a lot even if you sell it every month after buy.
Another option will be fully settled online “BUY” equity trades and this is good provided you have the intention to buy certain stocks and not just for the purchase to unlock investment category as the min commission will be $10.