The Business Times

DBS raises interest rates on its Multiplier account, after similar move by OCBC

Published Tue, Nov 1, 2022 · 05:12 PM

DBS BANK has again increased the interest rates on its flagship Multiplier savings account, a day after OCBC Bank made a similar move as competition sharpens for customer deposits.

Singapore’s largest bank on Tuesday (Nov 1) lifted the maximum interest rate on the Multiplier account to 4.1 per cent a year, up from 3.5 per cent previously.

This applies to the first S$100,000 in a customer’s account when he transacts in three categories with a total volume of S$30,000 or more in eligible monthly transactions.

The Multiplier account offers customers tiered interest rates on their account balances. Rates are higher if they spend larger amounts with DBS, and in more eligible categories that include spending with DBS/POSB credit cards, mortgage payments and investments.

To qualify for interest, customers must first credit an income stream to their Multiplier account and transact in at least one eligible category. An income stream is defined as salary, dividends or use of the Singapore Financial Data Exchange service to get a consolidated view of finances.

DBS has also simplified the balance cap structure on the account. Customers previously earned tiered interest on their first S$25,000 when they transacted in one category, their first S$50,000 when they spent in two categories, and the next S$50,000 for three or more categories.


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They will now earn tiered interest on their first S$50,000 when they transact in one category, and on their first S$100,000 when they transact in two or three categories.

DBS on Tuesday also raised the bonus interest on the POSB Save As You Earn (SAYE) account to 3.5 per cent, up from 2 per cent previously. This bonus interest is on top of the base rate of 0.05 per cent.

A customer who deposits monthly savings of S$100 into his SAYE account will be able to accumulate interest of S$89.13 by the end of two years, said DBS, adding that customers can hold both DBS Multiplier and POSB SAYE accounts at the same time.

This is the second time DBS has increased the rates on its Multiplier account this year amid a rising interest rate environment globally, led by an aggressive series of rate hikes by the United States Federal Reserve to tame red-hot inflation.

In August, DBS announced that Multiplier customers could earn a maximum of 3.5 per cent a year, up from 3 per cent previously, for balances of over S$50,000 and up to S$100,000.

Its latest move comes a day after OCBC raised the interest rate on its flagship 360 savings account to 4.65 per cent a year, up from 1.85 per cent, on the first S$100,000 in customers’ bank accounts when they credit their salary, save and spend with the bank.

The interest rate is 7.65 per cent a year on their first S$100,000, up from 4.05 per cent, for OCBC 360 customers who go beyond these three categories to also invest and buy insurance through the bank.

These banks are not alone in trying to capture more customer deposits, with others such as UOB and Standard Chartered also increasing the interest rates on their savings accounts in recent months.

Jeremy Soo, DBS’ managing director and head of consumer banking group (Singapore), said persistent market volatility and surging inflation have impacted customers’ wallets.

“There isn’t a more crucial time than now to enable our customers... to manage their finances prudently and make their hard-earned savings work harder for them. We have designed these solutions in a way that we won’t make it difficult for customers to qualify for the benefits to achieve sustainable financial well-being,” he said.

DBS added that the revision of rates in August sparked twice the number of account sign-ups within a month, compared with previous months.

Industry observers told The Straits Times recently that besides interest rates, customers also need to consider other factors such as their existing finances and the fine print in conditions to fulfil certain criteria when choosing their main savings account. THE STRAITS TIMES


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