DBS Multiplier Review: Is it a competitive savings account?

What happened?

We've been getting many questions on how the interest rate for the DBS Multiplier account is calculated.  

Hence, we were glad to hear that the DBS Multiplier account has been made simpler with effect from 1 August 2023. 

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

However, some of the key changes that have been made include the following:

• 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)

These changes would be particularly relevant to you if you are a university student, NSF, 1st jobber, gig worker or retiree.

So read on to find out how you can earn a higher interest rate with the DBS Multiplier account!

How does DBS Multiplier work?

To earn a higher interest on DBS Multiplier, you will need to credit your salary or dividends. 

You will also earn a bonus interest when you take up more product categories with DBS/POSB. 

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

These product categories would include: 

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

What is the current interest rate of DBS Multiplier?

The interest rate you will earn for the DBS Multiplier account is based on total eligible transactions per month.

The higher value of your transactions, the higher the interest rate you will earn. 

Let's take a look at how is interest calculated for option 1, where you eligible transactions add up to more than S$500  monthly. 

For example, if you credit your salary, hit one category and have a monthly eligible transaction value of $500 to S$15,000 you will earn an interest rate of 1.8% per annum on your first $50,000.

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

If you are able to transact in 2 categories and have a monthly transaction value of S$30,000 or more, you would be able to earn an interest rate of 3.0% per annum on your first S$100,000.

If you credit your salary, hit three categories and have a monthly eligible transaction value of above $30,000, you can unlock the highest bonus interest rate tier of 4.1% per annum on your first $100,000.

What is the advantage of DBS Multiplier?

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. 

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

This means that you will still be able to hit the credit card category even if you only have a low spending on your credit card. You can make it up for the minimum total transaction value of $500 monthly through other categories, such as home loan. 

With the changes effective from 1 August 2023, there are now more ways to meet 'Income' category, including:

• 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

What is the disadvantage of DBS Multiplier?

To earn the highest tier of interest rate on the DBS Multiplier Account, you will need to hit 3 or more  categories. 

The two categories that are harder to meet are insurance and investments, and the financial products you buy will only qualify for 12 months of bonus interest. 

However, the silver lining is that there is no minimum purchase amount for each financial product. 

For me, I do not invest using DBS Vickers nor do I purchase insurance for them. At best, my transaction value will fall between the $500 to $15,000 category and the interest rate I can earn on the first $100,000 is 2.1% per annum. 

What are the requirements of the DBS Multiplier account?

To qualify for a DBS Multiplier account, you must fulfill the following requirements.

• You must be at least 18 years of age.
• No initial deposit required.
• Service charge of S$5 per month applies if your average daily balance falls below S$3,000. This service charge will be waived if you are 29 years old or below, or DBS Multiplier is your first DBS/POSB account (online applications only).
• Early account closure fee of S$30 if account is closed within 6 months.

You can read the full terms and conditions here. 

What is the interest rate I would earn on the DBS Multiplier account if I am not able to credit my salary? 

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 with any credit card or PayLah! Retail spend. 

Example #1 - University student who does not credit her salary 

Using the example of Andrea, who is a 21 years old full time student who spends S$100 through PayLah. 

This means that Andrea is able to earn an interest rate of 1.50% per annum on her first S$50,000 of deposits. When she credits her income through internship of $500 or morre a month, she would be able to earn a higher interest rate of 1.80% per annum. 

Example #2 - Retiree with no salary 

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

Final verdict on DBS Multiplier 

The DBS Multiplier account offers a bonus interest rate when you carry out multiple transactions with the bank. 

If you already have an existing account with DBS, you may find it easy to hit 2 out of 4 categories through your DBS/POSB credit card and have a home loan with them. 

However, if you do not invest or insure with DBS, then you might find it difficult to unlock the highest tier of interest rates.

The good thing is that there is no minimum amount needed across all the transaction categories to unlock the bonus interest rate. 

We are also pleased to see that the eligible transaction amount has been lowered from $2,000 to $500, and that there are more ways to meet 'Income' category. 

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