OCBC 360 vs DBS Multiplier: Which is better for savings?

TL;DR

• The OCBC 360 savings account offers a maximum effective interest rate of 7.65% per annum, while the DBS Multiplier savings account offers a maximum effective interest rate of 4.10% per annum. 

• The OCBC 360 account offers a higher interest rate compared to the DBS Multiplier account if you are able to credit your salary, save at least S$500 and and spend at least $500 per month on your OCBC 365 credit card every month.

• However, the DBS Multiplier account offers a higher interest rate compared to the OCBC 360 account for deposits of below S$75,000 if you are able to credit your salary  spend on eligible credit cards, have a home loan and invest with DBS, and have total eligible transactions per month of more than $30,000. 

• Compared to the T-bill which may be less liquid, both the OCBC 360 and DBS Multiplier accounts offer good alternatives to park your emergency cash.

What happened?

Many people have asked if we would put our money into the OCBC 360 or DBS Multiplier account.

After all, the OCBC 360 offers an attractive effective interest rate of up to 7.65% per annum. 

The DBS Multiplier was also recently made more simple to allow you to earn a bonus interest rate with a lower monthly transaction amount.

To help you find the best savings account in Singapore with the highest interest rate, we will compare the OCBC 360 account with the DBS Multiplier account.

Let us start by finding out more about the OCBC 360 and DBS Multiplier accounts. 

What you need to know about the OCBC 360 account

The OCBC 360 savings account offers an interest rate of up to 4.65% per annum (p.a.) on the first S$100,000 of deposits when you credit your salary, save and spend.

You can earn an additional 3.00% a year when you insure and invest with your OCBC 360 account.

The OCBC 360 account offers a tiered interest rate depending on the amount of deposit in the account and your ability to meet different categories. 

These categories include the following:

• Salary: Credit your salary of at least S$1,800 through Giro

• Save: Increase your average daily balance by at least S$500 monthly

• Spend: Charge at least S$500 to selected OCBC credit cards each month

• Insure: Purchase an eligible insurance product from OCBC

• Invest: Purchase an eligible investment product from OCBC

• Grow: Maintain an average daily balance of at least S$200,000

The interest rate you are able to earn on the OCBC 360 account will then depend on how many of these categories you are able to meet. 

We can look at the effective interest rate (EIR) earned on the OCBC 360 account across various tiers. To calculate the effective interest rate, we can add the total interest received across different tiers.

The effective interest rate is the average interest rate you would get by dividing the total interest earned by your average balances.

• Salary + Save: Maximum EIR of 4.05% a year.
• Salary + Save + Spend: Maximum EIR of 4.65% a year.
• Salary + Save + Spend + Insure / Invest: Maximum EIR of 6.15% a year
• Salary + Save + Spend + Insure + Invest: Maximum EIR of 7.65% a year

If you are able to just hit the salary and save categories and have S$100,000 of deposits in the OCBC 360 account, you will earn an effective interest rate of 4.05% p.a.

Realistically, most of us may only be able to hit the first 3 categories - crediting salary into the OCBC 360 account, increasing our average daily balance by $500 and spending at least $500 on an OCBC 365 credit card. 

If you hit the 3 categories, you will earn an interest rate of up to 4.65% per annum on your first $100,000 of deposit.  

To qualify for the insurance and/or investment interest rate, you will need to purchase an eligible product from OCBC. The keyword here is eligible and it comes with a price tag.

You can learn more about the OCBC 360 savings account here.

What you need to know about the DBS Multiplier Account

The DBS Multiplier account has been made simpler for you to earn a bonus interest rate with a lower monthly transaction amount.

With these changes, you can earn an interest rate of up to 4.1% per annum. 

Like the OCBC 360 savings account, it comes with several criteria. You will need to conduct transactions in several categories before you can earn the maximum interest rate. 

Some of the other changes that were recently made include:

• Eligible transaction amount lowered from $2,000 to $500
• More ways to meet 'Income' category
• More ways to meet 'Spend' category
• Streamlined interest rate tiers for you to earn more without doing more 
• Earn higher bonus interest even without an Income (for 29-year-old and below)

DBS goes by the total eligible transactions per month and the higher value of your transactions, the higher the interest rate you will earn. 

In addition, the more product categories you transact with, the higher bonus interest you can earn with the DBS Multiplier account. 

These product categories include: 

• Spending on eligible credit cards or PayLah retail spend
• Purchase of eligible insurance product
• Purchase of eligible investment product
• Taking a home loan

The good thing about the DBS multiplier account is that you may find it easy to hit 2 out of 4 categories if you bank with them - you can spend using their credit card and have a home loan instalment plan with them. 

For example, if you credit your salary, hit two category and have a monthly eligible transaction value of $500 to S$15,000 you will earn an interest rate of 2.1% per annum on your first $100,000.

Also, there is no minimum amount needed across all the transaction categories to unlock the bonus interest rate. 

You can read our detailed review on the DBS Multiplier savings account here.

Should you put your money in OCBC 360 or DBS Multiplier account?

Let me try to use my rusty math to find out if the OCBC 360 or DBS Multiplier account is better for the average Singaporean. 

This would be someone who: 

(1) saves at least $500 a month

(2) spends at least $500 a month on eligible credit cards

(3) has total eligible transactions per month of more than $500 but less than $15,000.

(4) does not buy insurance/investment products from the bank

Based on what I see, OCBC 360 is better than the DBS Multiplier account for a Singaporean who saves and spends, but does not buy any insurance or investment products from the bank.

When is the DBS Multiplier account better than the OCBC 360 account?

Do note that you will qualify for the Investment category for DBS Multiplier if you invest with DBS Vickers, but you will not qualify for the same category in the OCBC 360 account if you invest with OCBC securities.

If you invest with DBS Vickers, you might find it easier to unlock the additional interest rate for the next $50,000 tranche. 

Also, if you have a home loan for DBS, you may be able to meet the home loan category as well. 

In this case, you might be be able to earn the maximum interest rate of 4.10% p.a. on the DBS Multiplier account if you have more than $30,000 in eligible transactions amount each month. 

The table below would show a comparison for the maximum effective interest rate earned for an individual who:

(1) saves at least $500 a month

(2) spends at least $500 a month on eligible credit cards

(3) invests with DBS Vickers

(4) has a home loan with DBS

(5) has total eligible transactions per month of more than $30,000

In this scenario, it might be possible to earn a higher interest rate on the DBS Multiplier account compared OCBC 360 account. 

What are other advantages of the DBS Multiplier account over the OCBC 360 account?

There are now more ways to meet the 'Income' category of the DBS Multiplier account. These would include:

• Salary credited via GIRO, FAST, or PayNow (Was limited to GIRO previously)
• Dividends credited via GIRO, FAST or PayNow
• Annuities from CPF or SRS are also recognised

Hence, a retiree who receives his CPF LIFE monthly payouts through DBS and transacts using DBS PayLah! is still able to earn an interest rate of 1.80% per annum on his first S$50,000 in the DBS Multiplier account.

Also, if you are 29 years and below, you can still earn an interest rate of 1.50% per annum on your first S$50,000 in the DBS Multplier account with any credit card or PayLah! Retail spend. 

You can learn more about the DBS Multiplier account here

Final verdict on OCBC 360 vs DBS Multiplier saving account

The OCBC 360 account offers a higher interest rate compared to the DBS Multiplier account if you are able to credit your salary into the OCBC 360 account, increase your average daily balance by $500 and spend at least $500 on an OCBC 365 credit card every month. Read our detailed review of the OCBC 360 account here.

However, the DBS Multiplier account offers a higher interest rate compared to the OCBC 360 account for deposits of below S$75,000 if you credit your salary into the DBS Multiplier account, spend on eligible credit cards or PayLah, have a home loan with DBS,  invest via DBS Vickers, and have total eligible transactions per month of more than $30,000. Read our detailed review of the DBS Multiplier account here.

To find out how DBS Multiplier and OCBC 360 accounts compares to other savings account in Singapore, check out our guide to the best savings accounts in Singapore.