DBS Multiplier Account: What Are the Changes in August 2020?
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DBS Multiplier Account: What Are the Changes in August 2020?

Sudhan P
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The DBS Multiplier Account has always been one of the more popular savings accounts around.

But with every new change announced, it may (or may not) be as attractive as before

For those who aren’t kept in the loop, here are the changes to the DBS Multiplier account in 2020 which will take into effect from 1 August 2020 onwards.

TL;DR: Changes to DBS Multiplier From 1 August 2020 

DBS multiplier Aug 2020 changes Seedly

Revisions of Dividend Credit Definition and Interest Rates for DBS Multiplier Account 

Effective 1 August 2020, there will be two revisions:

  1. Change in dividend credit definition 
  2. Changes in interest rates for Income + transactions in 1 and 2 categories

The reduction in interest will affect the first $25,000 for the Income + Transactions in 1 category and the first $50,000 for the Income + Transactions in 2 categories.

1. Change in dividend credit 

Before 1 August 2020From 1 August 2020 (changes in bold)
Eligible dividends included are from:
(1) Central Depository Pte Ltd (CDP)
(2) DBS Vickers (SGX only)
(3) DBS Online Equity Trading
(SGX only)
Eligible dividends included are from:
(1) Central Depository Pte Ltd (CDP)
(2) DBS Vickers (all markets)
(3) DBS Online Equity Trading (all markets)
(4) DBS Unit Trusts
(5) DBS Online Funds Investing
(6) DBS Invest-Saver
Dividends must be credited into:
(1) Personal or joint DBS/POSB
savings/current accounts
Dividends must be credited into:
(1) Personal or joint DBS/POSB
savings/current accounts
(2) Supplementary Retirement
Scheme (SRS) account

(3) CPF Investment Account
(CPFIA)

2. Changes in interest rates

 Income + transactions in 1 category
(for the first $25,000)
Income + transactions in 2 categories
(for the first $50,000)
Total eligible transactions
per month
Before 1 Aug 2020 (per annum)From 1 Aug 2020 (per annum) Changes in interest rate (percentage point)Before 1 Aug 2020From 1 Aug 2020Changes in interest rate (percentage point)
Below $2,0000.05%0.05%No change0.05%0.05%No change
$2,000 to <$2,5001.40%0.70%-0.71.80%1.30%-0.5
$2,500 to <$5,0001.60%0.90%-0.72.00%1.50%-0.5
$5,000 to <$15,0001.80%1.10%-0.72.20%1.80%-0.4
$15,000 to <$30,0001.90%1.20%-0.72.30%1.90%-0.4
$30,000 and above2.00%1.30%-0.73.50%2.80%-0.7

All other qualifying conditions for the DBS Multiplier Account remain unchanged. 

What Does The “Income + Transactions in 1 Category” Mean for DBS Multiplier?

It means, you are salary and/or dividend crediting (Income) plus doing one of the following categories with DBS:

  • Spend using your credit card
  • Buy an eligible insurance policy
  • Invest in an eligible investment
  • Get a home loan from DBS

For two categories, it simply means you are doing any two of the above four. 

There’s no minimum amount needed for any category (including Income).

As long as your monthly total eligible transactions total $2,000 or more, you will qualify.

Aug 2020 Update: How Does It Affect Current DBS Multiplier Account Holders?

With the US Fed cutting its interest rates to near zero, the lowering of interest rates for the DBS Multiplier Account was expected. 

Other bank accounts to change interest rates include OCBC 360, Standard Chartered JumpStart, and CIMB FastSaver.

As for the DBS Multiplier account, the change directly impacts account holders with the first $25,000 or the first $50,000 as account balance. 

There will be a drop in the interest rate of 0.4 percentage point (p.p) to 0.7 p.p, depending on which bracket you fall into. 

For example, if you satisfy the salary credit criterion and have 2 more categories of transactions, the amount of interest you can earn is now much lesser. (This applies to people with $50,000 or less in their account.) 

Assuming Alex, a DBS Multiplier Account holder, has: 

  • A total of $30,000 savings parked in his DBS Multiplier Account 
  • He gets $3,000 worth of salary credited monthly into his Multiplier Account each month
  • His monthly spend on his credit card amount to $300 per month
  • He spends an additional $500 servicing his DBS home loan each month

His overall eligible transaction will be $3,000 plus $300 plus $500, a total of $3,800 per month.

He will be eligible for a 2% interest rate per annum on his first $30,000 in savings or around $600 in interest (assuming balance and expenses stay same throughout). 

From August 2020 onwards, this interest rate will drop to 1.50% per annum on his first $30,000 worth of savings. 

The difference will be 0.5% per annum or $150 worth of interest

That’s 20 Nutella Frappuccinos from Starbucks foregone!

.

.

.

As for the dividend credit definition changes, it’s good news! 

Spongebob Thumbs Up
Source: SpongeBob SquarePants | Giphy

Come 1 August 2020, more markets and accounts will now be eligible to fulfil the Income category. 

For example, previously, dividend from the Hong Kong market credited into your DBS account wasn’t part of the dividend crediting eligibility. 

But with the expanded definition, dividend from Hong Kong stocks will become eligible.


This is the third change to be done to the DBS Multiplier Account since the start of 2020.

A Quick Recap: Changes to the DBS Multiplier Account on February 2020

The first change occurred with effect from 1 February 2020. 

 Before 1 February 2020 From 1 February 2020
Salary Credit Must be credited via GIRO, with transaction reference code
'SAL or PAY'
Will be renamed to income category instead, and will be made up of:
1) Salary Credit: Must be credited via GIRO, with transaction reference codes SAL or PAY.

2) Dividends: Must be credited via GIRO, fromCentral Depository Pte Ltd (CDP)
Dividend Credit Qualify under Investment Category Will be qualified under Income Category instead
Balance cap for Salary Credit + transactions in 1 category Higher interest is applied for balances up to $50,000 onlyHigher interest will be applied on balances up to $25,000 only.

Source: DBS 

A Quick Recap: Changes to the DBS Multiplier Account on May 2020

The subsequent change occurred with effect from 1 May 2020.

 Income + transactions in 1 category
(for the first $25,000)
Total eligible transactions
per month
Before 1 May 2020From 1 May 2020Changes in interest rate (percentage point)
Below $2,0000.05% per annum0.05% per annumNo change
$2,000 to <$2,5001.55% per annum1.40% per annum-0.15
$2,500 to <$5,0001.85% per annum1.60% per annum-0.15
$5,000 to <$15,0001.90% per annum1.80% per annum-0.10
$15,000 to <$30,0002.00% per annum1.90% per annum-0.10
$30,000 and above2.08% per annum2.00% per annum-0.08

Source: DBS 


Is It Still Worth Opening A DBS Multiplier Account?

The reduction in interest rate is disappointing.

However, it was expected. 

A silver lining with the latest change is that the dividend crediting definition has been expanded.

That would benefit full-time investors or retirees who have the DBS Multiplier Account and don’t have a salary coming in each month. 

Dividend received from investing in stocks other than those listed in the Singapore stock market will be eligible now for the Income category. 

Or if the investor invests his SRS account into Singapore-listed stocks, the dividend would now become eligible as well. 


For those who are gunning for higher interest rates and want to find out how to maximise your savings…

Try our FREE Savings Account Calculator… 

You can also check out Seedly’s DBS Multiplier account review while you are at it! 

About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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