If you’re looking to maximise your savings in Singapore, the DBS Multiplier Account could be a great option for you. This high-interest savings account allows you to earn up to 4.1% p.a. on your savings, making it a popular choice for many Singaporeans. However, to make the most of this account, it’s important to understand how it works and what you need to do to maximise your interest earnings.
To start with, it’s important to note that the DBS Multiplier Account rewards you with bonus interest based on the transactions you make with DBS/POSB. These transactions can include credit card spend, home loan instalments, insurance, and investments, among others. By transacting in one or more of these categories and crediting your income to the account, you can earn bonus interest on your savings. However, there are certain eligibility criteria you need to meet to qualify for the bonus interest, so it’s important to understand these before opening an account.
Once you’ve opened your DBS Multiplier Account and met the eligibility criteria, there are several strategic financial activities you can undertake to maximise your interest earnings. These can include making regular investments, paying off your home loan faster, and consolidating your finances to reduce your interest costs. By taking these steps and making the most of the DBS Multiplier Account, you can boost your savings and achieve your financial goals faster.
Key Takeaways
- The DBS Multiplier Account rewards you with bonus interest based on the transactions you make with DBS/POSB, so it’s important to understand the eligibility criteria before opening an account.
- Once you’ve met the eligibility criteria, there are several strategic financial activities you can undertake to maximise your interest earnings, such as making regular investments and paying off your home loan faster.
- By taking advantage of the DBS Multiplier Account and making smart financial decisions, you can boost your savings and achieve your financial goals faster.
Understanding the DBS Multiplier Account
If you’re looking for a high-interest savings account in Singapore, the DBS Multiplier Account is worth considering. This account offers a base interest rate that is higher than most savings accounts, and also provides bonus interest rates based on your transactions with DBS/POSB. Here’s what you need to know to understand the DBS Multiplier Account.
What Is the DBS Multiplier Account?
The DBS Multiplier Account is a personal multi-currency deposit account that rewards you with bonus interest rates when you transact with DBS/POSB. This account allows you to earn up to 4.10% p.a. on your savings, which is significantly higher than the interest rates offered by most savings accounts in Singapore.
How Does the Multiplier Account Work?
The DBS Multiplier Account calculates your bonus interest rate based on the total amount of transactions you make with DBS/POSB in a month. Transactions that qualify for bonus interest include credit card/PayLah! retail spend, home loan instalments, insurance, and investments.
To qualify for bonus interest, you must credit your income into the account and transact in at least one of the categories mentioned above. The more categories you transact in, the higher your bonus interest rate will be.
Base Interest vs. Bonus Interest Rates
The DBS Multiplier Account offers a base interest rate of 0.05% p.a. on your savings, which is higher than the interest rates offered by most savings accounts in Singapore. In addition to the base interest rate, you can earn bonus interest rates of up to 4.10% p.a. based on your transactions with DBS/POSB.
The bonus interest rates are tiered, which means that the more transactions you make, the higher your bonus interest rate will be. For example, if you transact in one category, you can earn a bonus interest rate of 0.30% p.a. If you transact in two categories, you can earn a bonus interest rate of 0.60% p.a. If you transact in three or more categories, you can earn a bonus interest rate of up to 4.10% p.a.
In conclusion, the DBS Multiplier Account is an excellent option for those looking to maximize their savings in Singapore. By understanding how the account works, you can take advantage of the base interest rate and bonus interest rates to earn significantly higher interest on your savings.
Eligibility and Account Opening
Who Can Open a Multiplier Account?
If you’re looking to open a DBS Multiplier Account, you’ll be pleased to know that it’s available to anyone who is a Singaporean citizen or permanent resident, as well as foreigners who are at least 18 years old. Additionally, you’ll need to have a valid SingPass, which is required for the online application process.
Steps to Open Your Account
Opening a DBS Multiplier Account is a straightforward process that can be completed entirely online. Here are the steps you need to follow:
- Visit the DBS Multiplier Account page on the DBS website and click on the “Apply Now” button.
- Fill in your personal details, including your name, NRIC or passport number, and contact information.
- Choose the type of account you want to open, and select “DBS Multiplier Account.”
- Select the type of income you will be using to qualify for bonus interest, such as salary or dividends.
- Choose the categories of transactions you will be using to qualify for bonus interest, such as credit card spending or home loan payments.
- Review and confirm your application details, and submit your application.
- Wait for your application to be processed and approved. Once approved, you will receive a confirmation email with instructions on how to activate your account.
Overall, opening a DBS Multiplier Account is a quick and easy process that can be completed entirely online. By following these steps, you’ll be on your way to earning bonus interest on your savings in no time!
Maximising Your Interest Earnings
If you have a DBS Multiplier account, you’re already on the right track to earning high interest rates on your savings. However, there are several strategies you can use to maximise your interest earnings even further.
Income and Transaction Categories
To qualify for bonus interest on your DBS Multiplier account, you need to fulfil certain income and transaction categories. These include salary credit, dividends, and retail spend using PayLah!. You can earn up to 0.5% bonus interest on the first $10,000 in your account by fulfilling these criteria.
To maximise your interest earnings, consider increasing the amount of money you credit into your account each month. You can also explore other sources of income, such as rental income or freelance work, that can help you fulfil the income category.
Increasing Transaction Volume
Another way to maximise your interest earnings is to increase your transaction volume. This means making more transactions using your DBS Multiplier account, such as bill payments, GIRO transactions, and online transfers.
By increasing your transaction volume, you can earn bonus interest on a larger portion of your savings. You can also consider setting up automatic bill payments or GIRO transactions to ensure that you never miss a transaction.
Leveraging Credit Card Spend
Finally, you can maximise your interest earnings by leveraging your credit card spend. DBS Multiplier offers bonus interest on your credit card spend if you use a DBS/POSB credit card and fulfil certain transaction categories.
To take advantage of this, consider using your DBS/POSB credit card for all your daily expenses, such as groceries and dining out. You can also explore other credit card benefits, such as cashback and rewards points, that can help you save money and earn more interest on your savings.
By following these strategies, you can maximise your interest earnings on your DBS Multiplier account and achieve your financial goals faster.
Strategic Financial Activities
To maximize the interest earned on your DBS Multiplier account, you need to engage in strategic financial activities. These activities include salary crediting, investment products, and insurance policies. By doing so, you can earn bonus interest rates of up to 4.10% p.a.
Salary Crediting
One of the easiest ways to earn bonus interest rates is by crediting your salary into your DBS Multiplier account. By doing so, you can earn a bonus interest rate of up to 1.50% p.a. To qualify for this bonus interest rate, you need to credit your salary with either a “SAL” or “PAY” transaction reference code.
Investment Products
Investment products are another way to earn bonus interest rates on your DBS Multiplier account. You can earn bonus interest rates of up to 1.50% p.a. by investing in Unit Trusts or Exchange Traded Funds (ETFs) through the DBS Multiplier account.
Insurance Policies
Insurance policies are also eligible for bonus interest rates on your DBS Multiplier account. You can earn bonus interest rates of up to 0.80% p.a. by purchasing eligible insurance policies through DBS or POSB. These policies include life, endowment, and investment-linked insurance plans.
To summarize, to maximize your DBS Multiplier interest in Singapore, you need to engage in strategic financial activities such as salary crediting, investment products, and insurance policies. By doing so, you can earn bonus interest rates of up to 4.10% p.a. on your savings.
Loan and Property Management
If you have a home loan with DBS, you can earn higher bonus interest by making your home loan instalments through the DBS Multiplier account. This way, you can earn interest on your savings while paying off your home loan.
Home Loan Instalments
To earn higher bonus interest on your DBS Multiplier account, make your home loan instalments through the account. This way, you can earn interest on your savings while paying off your home loan.
Leveraging Home Loans for Higher Interest
By leveraging your home loan, you can earn higher bonus interest on your DBS Multiplier account. You can do this by taking out a home loan with DBS and making your home loan instalments through the account. This way, you can earn interest on your savings while paying off your home loan.
It’s important to note that leveraging your home loan can be risky and should be done with caution. Make sure you understand the terms and conditions of your home loan before making any decisions.
In summary, by making your home loan instalments through the DBS Multiplier account, you can earn higher bonus interest on your savings. This is a great way to maximize your earnings while paying off your home loan.
Lifestyle and Spending Habits
Maximising your DBS Multiplier interest in Singapore requires a bit of effort on your part. You need to make sure that you are using the account to its full potential by meeting the necessary criteria to earn bonus interest. Here are some lifestyle and spending habits to help you maximise your DBS Multiplier interest.
Retail Spend and Lifestyle Choices
One of the easiest ways to earn bonus interest is by spending on retail purchases. You can earn up to 3.8% p.a. in bonus interest by spending on eligible retail transactions such as dining, shopping, and entertainment. To qualify for this, you need to spend a minimum of $1,000 in eligible retail transactions per month on your DBS Multiplier account.
To make the most of this, you should consider using your DBS Multiplier account for your daily expenses such as groceries, petrol, and other retail purchases. By doing so, you can earn bonus interest on your daily expenses and maximise your savings.
Using PayLah! for Daily Transactions
Another way to earn bonus interest is by using PayLah! for your daily transactions. PayLah! is a mobile wallet app that allows you to make payments, transfer money, and pay bills easily and securely. By using PayLah! for your daily transactions, you can earn up to 0.5% p.a. in bonus interest.
To qualify for this, you need to make at least five transactions of any amount per month using PayLah! on your DBS Multiplier account. This includes transactions such as paying for your coffee, buying groceries, or paying your bills.
By incorporating these lifestyle and spending habits into your daily routine, you can maximise your DBS Multiplier interest and earn bonus interest on your savings. Remember to keep track of your spending and transactions to ensure that you meet the necessary criteria to earn bonus interest.
Special Considerations for Different Life Stages
Students and Young Adults
As a student or young adult, you may not have a high income yet, but you can still maximize your DBS Multiplier interest by making sure that your salary or allowance is credited to your account. You can also earn bonus interest by spending on your DBS/POSB credit card or making investments. If you’re a tertiary student, you can also enjoy bonus interest by paying your tuition fees with your DBS/POSB credit card.
Retirees and Long-Term Planning
If you’re a retiree or planning for the long term, you can maximize your DBS Multiplier interest by making sure that you have a steady stream of income credited to your account. This can come from sources such as your CPF Life payouts or Supplementary Retirement Scheme (SRS) withdrawals. You can also earn bonus interest by spending on your DBS/POSB credit card or making investments.
It’s important to note that the DBS Multiplier interest rates are tiered, which means that the more you transact and earn, the higher your interest rate will be. Therefore, it’s essential to plan your spending and investments carefully to ensure that you can earn the maximum interest possible.
Overall, the DBS Multiplier account is a great way to earn high interest rates on your savings, regardless of your life stage. By making sure that you have a steady stream of income and transacting regularly, you can maximize your interest and achieve your financial goals.
Joint Accounts and Family Banking
If you’re married or living with your partner, opening a joint account can be a great way to manage your finances together and maximize your DBS Multiplier interest.
Benefits of a Joint Account
Having a joint account allows both you and your partner to contribute to the account and earn bonus interest on the average daily balance in your individual DBS Multiplier accounts. By depositing your salaries into the joint account, you can qualify for higher eligible transaction tiers and earn bonus interest on your individual accounts.
Moreover, with a joint account, you can easily track and manage your expenses as a couple. You can set up automatic payments for your bills, mortgage, and other joint expenses, making it easier to budget and manage your finances.
Managing Family Finances
Family banking is another option to consider if you have children or other family members who you want to include in your financial planning. With DBS Family Banking, you can link up to 5 family members’ accounts to your DBS Multiplier account and earn bonus interest on all linked accounts.
This is a great way to pool your family’s finances together and maximize your interest earnings. You can also set up automatic transfers to your family members’ accounts, making it easier to manage their finances.
Balance Cap
It’s important to note that the DBS Multiplier account has a balance cap of $50,000 for each individual account. This means that any balance above $50,000 will not earn bonus interest. However, with a joint account, you can double the balance cap to $100,000, allowing you to earn bonus interest on a larger balance.
Overall, opening a joint account or considering family banking can be a great way to maximize your DBS Multiplier interest earnings and manage your family’s finances together.
Foreign Currency and Overseas Transactions
If you frequently travel overseas or have foreign currency investments, then you can also earn bonus interest on your DBS Multiplier account. Here are some ways you can maximize your interest earnings:
Foreign Currencies in Your Portfolio
If you have foreign currency deposits in your DBS Multiplier account, you can earn up to 2.50% p.a. bonus interest on your Singapore Dollar balance. The bonus interest rate is based on the total foreign currency equivalent balance in your account.
For example, if you have USD 10,000 and AUD 5,000 in your DBS Multiplier account, your total foreign currency equivalent balance is SGD 20,000 (assuming an exchange rate of 1 USD = 1.3 SGD and 1 AUD = 1 SGD). You will earn bonus interest on your SGD balance based on the total foreign currency equivalent balance of SGD 20,000.
Dual Currency Investments
Another way to earn bonus interest on your DBS Multiplier account is through dual currency investments (DCIs). DCIs are structured deposits that offer potentially higher returns than traditional fixed deposits. They allow you to invest in two currencies and earn interest based on the exchange rate movement between the two currencies.
With DBS Multiplier, you can earn up to 1.50% p.a. bonus interest on your DCI investments. The bonus interest rate is based on the total amount invested in DCIs, subject to a maximum cap of SGD 1 million.
When investing in DCIs, it’s important to understand the risks involved. DCIs are not principal-protected, which means you may lose some or all of your investment if the exchange rate moves against you. It’s important to consult with a financial advisor before investing in DCIs.
By taking advantage of foreign currency and overseas transactions, you can earn bonus interest on your DBS Multiplier account and maximize your savings. Keep an eye on the exchange rate and consider investing in DCIs to potentially earn higher returns.
Frequently Asked Questions
What steps can I take to boost my earnings from the DBS Multiplier account?
To maximize your earnings from the DBS Multiplier account, you should credit your income (salary and/or dividends) and transact in one or more of the following categories: credit card spend, home loan installment, insurance, investments, adding up to S$2,000 or more. The more categories you transact in, the higher your interest rate will be.
Is there a strategy to achieve the highest possible interest rate with my DBS Multiplier account?
Yes, there is a strategy to achieve the highest possible interest rate with your DBS Multiplier account. You can earn the highest interest rate of 4.00% p.a. if you transact in all eligible categories and have a base interest rate of 0.05% p.a. To achieve this, you need to credit your income (salary and/or dividends) and transact in credit card spend, home loan installment, insurance, and investments, adding up to S$30,000 or more.
Can you explain the differences between the DBS Multiplier and DBS MySavings accounts?
DBS Multiplier account is a savings account that rewards you with higher interest rates when you credit your income and transact in eligible categories. DBS MySavings account is a savings account that offers a higher interest rate when you save more. The more you save, the higher your interest rate will be.
What are the requirements for waiving the minimum balance fee on a DBS Multiplier account?
To waive the minimum balance fee on a DBS Multiplier account, you need to maintain a minimum daily balance of S$3,000. If you do not maintain the minimum daily balance, a monthly fee of S$5 will be charged.
How can I use a DBS Multiplier interest rate calculator to estimate my potential earnings?
To estimate your potential earnings with a DBS Multiplier interest rate calculator, you need to input your monthly salary, the amount you spend on your credit card, the amount of your home loan installment, the amount of your insurance premium, and the amount of your investments. The calculator will then calculate your potential interest rate and earnings.
Are there ways to obtain an interest rate of 6% with a DBS Multiplier account?
No, there are no ways to obtain an interest rate of 6% with a DBS Multiplier account. The highest interest rate you can earn with a DBS Multiplier account is 4.00% p.a.
