Yahoo Finance DBS Multiplier Account Review — Should You Switch Savings Account in 2022?
You’ve probably seen the ads for the DBS Multiplier account. You know, the one with bunnies multiplying? That’s supposed to suggest how fast your money can grow in this high interest savings account.
Well, that’s a bit of a joke – DBS announced some huge interest rate cuts in Jan 2021.
We’ll give you the lowdown on the latest interest rates and T&Cs. And more importantly, is it time to switch out your savings account for greener pastures? All your DBS Multiplier questions answered and more below.
DBS Multiplier Account
Key Features
No minimum salary credit
DBS Multiplier Account is a deposit account with a base interest rate of 0.05% per annum
Bonus interest rates: 1.40% to 3.80% per annum. DBS Multiplier Account 2020 interest rates have been updated as of 1 August 2020
To enjoy bonus interest rates, you need to credit your salary or dividends via GIRO to any DBS/ POSB deposit account that you hold, and transact a minimum of S$2,000 on any DBS/ POSB credit card you hold, DBS/ POSB home loan monthly instalments, DBS/ POSB insurance regular monthly premium, or DBS investments. Your bonus interest rate increases if you transact in more of the above categories
Bonus interest rates for 29-year-olds and below: Credit your income and spend above S$500 via PayLah! to qualify for 0.30% bonus interest rates on your PayLah! retail spend
DBS Multiplier 2020 interest rate updates: As of 1 August 2020, interest rates have been revised for DBS Multiplier account holders with transactions in 1 and 2 categories. Refer to Bonus Interest Rate tab below to see the change in interest rates
Students, NSF, self-employed, salaried or retired individuals are eligible to apply
What are the DBS Multiplier interest rates for 2022?
Here are the interest rates you can get on the DBS Multiplier account, as of 1 Jan 2022:
Total eligible transactions per month | Bonus interest with the DBS Multiplier account | ||
First $50,000 | Next $50,000 | ||
Income + 1 category (capped at $25,000) | Income + 2 categories (capped at $50,000) | Income credit + 3 categories | |
<$2,000 | 0.05% | 0.05% | 0.05% |
≥$2,000 to <$2,500 | 0.4% | 0.6% | 1.2% |
≥$2,500 to <$5,000 | 0.4% | 0.7% | 1.4% |
≥$5,000 to <$15,000 | 0.5% | 0.8% | 1.6% |
≥$15,000 to <$30,000 | 0.5% | 1% | 1.7% |
≥$30,000 | 0.6% | 2% | 3% |
How are DBS Multiplier interest rates calculated?
The DBS Multiplier account starts with a very low base interest rate of 0.05% p.a. To earn bonus interest, you need to fulfil 2 requirements.
Requirement 1: Income credit (compulsory)
Requirement 2: Select 1 or more of the below transactions
Spending on DBS/POSB credit cards
Getting a home loan from DBS/POSB
Investing with DBS/POSB (first 12 months only)
Buying insurance from DBS/POSB (first 12 months only)
DBS totals up the transaction amount each month to decide on how much interest to give you that month. Although there’s no minimum amount for each action, the total transactions need to be at least $2,000 to qualify for bonus interest.
You can work out how much interest you qualify for by fiddling around with the DBS Multiplier interest rate calculator here.
DBS Multiplier interest rates for PayLah option
There’s another way to earn bonus interest with the DBS Multiplier if you can’t hit the $2,000 minimum: the DBS Paylah method.
Total transactions per month | Up to first $10,000 in DBS Multiplier Account | |
Income + PayLah | PayLah only (up to age 29) | |
>$0 to <$500 | 0.05% | 0.3% |
≥$500 | 0.4% | |
As you can see, to earn 0.4% with the income + PayLah method, you only need to hit $500 a month in transactions. But with the DBS Multiplier’s usual income + 1 category route, you’d need to hit $2,000 for the same returns.
Note that only PayLah retail transactions count towards your total transactions, i.e. payments to merchants or bill payments. Transferring money to your friends and family is NOT counted as an eligible transaction.
For those aged 29 or younger, with no eligible income, you can get 0.3% p.a. straight away by paying through PayLah and there’s no minimum amount to hit (yay!).
DBS Multiplier income category: What counts as “income”?
There are two ways to tick off the “income” box: either salary credit, dividends or connecting SGFinDex to DBS NAV Planner.
Salary credit: This is the conventional way — make sure your salary is credited via GIRO, with reference code SAL or PAY. It can be credited to any of your DBS/POSB savings accounts, including joint accounts.
Dividends: Selected investment dividends also count as “income” (but only in the month that they come in). They can come from any of the following:
Central Depository Pte Ltd (CDP)
DBS Vickers Securities
DBS Online Equity Trading
DBS Unit Trusts
DBS Online Funds Investing
DBS Invest-Saver
To qualify, the dividends must be credited into your DBS/POSB bank account, DBS Wealth Management account, DBS SRS account, or CPF Investment Account.
Connecting SGFinDex to DBS NAV Planner: Connect and share financial information from your other banks and government accounts (CPF, HDB, and IRAS) with SGFinDex. For this to count, you have to also request for information retrieval of the linked accounts through DBS NAV Planner monthly.
Tip: If you’re already crediting your salary to another similar bank account, you can “cheat” by using your investment dividends to earn extra interest with the PayLah method above (dividends + PayLah = at least $500).
DBS Multiplier credit card category: Which card is best?
Although not compulsory, it’s a very good idea to use a DBS/POSB credit card to bump up your bonus interest tier.
Unlike other savings accounts which require you to spend at least $500, there’s no minimum with DBS. Just remember to swipe it at least once a month.
Here are some DBS/POSB credit cards you can consider using:
Online Promo
Earn Cash Rebates that Never Expire
POSB Everyday Card
Online Promo:
Get powered up with up to 28% cashback when you apply online for a DBS/POSB Credit Card with the promo code “MORECASH”. Valid till 31 Jan 2022.
Valid until 31 Jan 2022
More Details
Key Features
No minimum spend
Base cashback rate: 0.3% POSB Daily$ rebate for all purchases
Activate SimplyGo to use your card as an EZ-Link card. SimplyGo charges MRT and bus fares to your credit card, eliminating the need for auto top-ups
Link the POSB Everyday Card to your DBS or POSB Savings or Current account to use card at ATM
Online Promo
Earn Miles That Never Expire
DBS Altitude Visa Signature Card
Online Promo:
Get up to 38,000 Miles with promo code ALTAF and spend a minimum of S$6,000 to your card in 90 days from card approval date. Valid till 30 April 2022. T&Cs apply.
Valid until 30 Apr 2022
More Details
Key Features
Base earn rate: 1.2 air miles per S$1 local spend
Base earn rate: 2 air miles per S$1 overseas spend charged in foreign currency
Online Promo
Online & Visa Contactless Spend
DBS Live Fresh Card
Online Promo:
Get powered up with up to 28% cashback when you apply online for a DBS/POSB Credit Card with the promo code “MORECASH”. Valid till 31 Jan 2022.
Valid until 31 Jan 2022
More Details
Key Features
Earn up to 5% cashback on Online & Visa contactless spend with a minimum spend of S$600 per calendar month
Earn 0.3% cashback on all other spend
All-in-one card: Use the same card for your bus and train rides, and ATM withdrawals
Enjoy 1-year annual fee waiver
DBS Woman's World Card
More Details
Key Features
10 DBS rewards points per S$5 local and overseas online spend
3 DBS rewards points per S$5 overseas spend
1 DBS rewards point per S$5 spent on all other categories
Online hotel booking and staycation deals with Agoda and Klook
Beauty deals with Laneige, Skin Inc, Strip, Browhaus, High Brow etc.
Online shopping promotions with Fayth, Her Velvet Vase, The Closet Lover, and Senreve etc.
Activate SimplyGo to use your card as an EZ-Link. Bus and MRT fares are charged directly to your card, so you don’t even need to top-up or set up auto top-up arrangements
DBS Points earned can be redeemed for Apple products via the DBS Apple Rewards Store, NTUC, and Takashimaya vouchers, Golden Village movie tickets, and more
DBS Multiplier home loan category: Is it a good idea?
We wouldn’t usually recommend jumping through hoops for bonus interest, but if you happen to be servicing a home loan, it’s worth considering a DBS home loan.
In particular, if you’re financing your place with the HDB loan, you could save quite a bit if you refinance to DBS (or any other bank, for that matter).
Due to the depressed global economy, bank mortgage interest rates are very low. For example, DBS current offers as low as 1.3% for HDBs, whereas the HDB loan is still the usual 2.6%. So, refinancing at this time could reduce your total expenses.
As an extra perk, if you go with DBS, you’d qualify for extra bonus interest without much effort.
The total monthly instalment (cash + CPF) would count towards the total transaction. Your spouse won’t be left out either, as it’s applicable to up to 3 joint borrowers.
DBS Multiplier invest & insure categories: Worth it or not?
Another way to temporarily unlock bonus interest on your DBS Multiplier is by investing and/or buying insurance.
For investments, you have the following options. They need to be NEW purchases made after opening your DBS Multiplier account:
DBS Invest-Saver (regular savings plan)
Buy stocks, bonds and structured products with DBS Vickers Online
DBS unit trust lump-sum contribution or Online Funds Investment purchased with cash, DBS CPFIA or DBS SRS Account
Invest in ready-made EFT portfolios with digiPortfolio
For insurance, only selected regular premium insurance policies qualify. Again, they need to be NEW purchases. Refer to the DBS Multiplier website for the full list of eligible policies, which include:
Cancer insurance
Critical illness insurance
Life insurance
Endowment plans
Retirement annuities
Single premium policies
These might be worth buying if you’re looking to get insured anyway, but bear in mind you can only get 12 months of bonus interest even though the commitment may be much longer.
What is the DBS Multiplier account’s bonus interest cap?
As you may have noticed, there is a “balance cap” for each tier you unlock.
DBS Multiplier account bonus interest cap | |
Income + PayLah / PayLah only | $10,000 |
Income + 1 category | $25,000 |
Income + 2 categories | $50,000 |
Income + 3 categories | $100,000 |
That means that as your savings grow, it gets increasingly difficult to earn bonus interest.
Once your account balance goes up to $50,001 to $100,000, you can only earn bonus interest on your full balance if you meet the following condition: income crediting + 3 additional transaction categories = 4 actions in total.
In other words, unless you are one hardcore DBS otaku, you’ll probably want to keep the excess in another account.
DBS Multiplier vs UOB One account — which is better?
The DBS Multiplier account’s major rival is the UOB One account. Both savings accounts’ interest rates are comparably bad, so instead let’s look at whether the T&Cs are a good fit for you.
Credit card spending: It’s compulsory to spend at least $500 a month on a UOB credit card to earn bonus interest. The DBS Multiplier account has no minimum spend.
Income crediting: Unlike the DBS Multiplier, income is not a requirement for the UOB One account. If you don’t draw a regular salary or monthly dividends, you can just pay 3 bills by GIRO every month and you can qualify for bonus interest.
Account balance: The UOB One account pays out higher interest for higher account balances; the DBS Multiplier doesn’t. UOB also caps it at $75,000 which is higher than DBS’s in general.
Verdict: Go for the UOB One account if you don’t have a regular salary/dividends. It’s easier to meet the requirements.
UOB One Account
More Details
Key Features
Up to 2.50% p.a. interest rates
Up to $200 cash credit when you sign up online and sign up for a UOB credit card. T&Cs apply
Low initial deposit of $500
Withdraw cash conveniently without an ATM card using Mobile Banking
UOB Young Professionals Solution is a combination of UOB One Account, UOB YOLO and the unique Sweep feature that allows you to automatically invest your earned account interests and card rebate into a Unit Trust
DBS Multiplier vs OCBC 360 account — which is better?
The OCBC 360 account is also similar to the DBS Multiplier, but there’s no one transaction requirement. Instead, you just pick from salary credit, insurance, investment, and/or increasing your monthly balance.
Income crediting: Unlike the DBS Multiplier, you do not need salary credit to earn bonus interest on your OCBC 360 (although it helps a lot).
Motivates saving: OCBC gives you an extra 0.1% every month you increase your savings by $500 or more. There’s no such mechanic for DBS Multiplier.
Difficult to unlock higher tier: Apart from salary credit and saving more, it’s tougher to unlock higher interest with the OCBC 360 account. You need to insure/invest in selected products to do so.
Verdict: Salaried folks will find it easier to earn bonus interest with the DBS Multiplier account, but if you need motivation to grow your emergency fund, go for the OCBC 360.
OCBC 360 Account
More Details
Key Features
Minimum salary credit of S$1,800 via GIRO
OCBC 360 is a savings account with a base interest rate of 0.05% per annum on the account’s balance
You enjoy bonus interest rates when you credit your monthly salary, meet certain deposit amounts such as S$500 monthly increases or S$200,000 total balance, purchase insurance, or invest with OCBC
Increase your OCBC 360 account savings balance by S$500 monthly to enjoy 0.10% bonus interest on the first S$25,000, followed by 0.20% bonus interest for the next S$25,000, and 0.40% bonus interest for the third S$25,000
If your account balance is above S$200,000, you enjoy an additional 0.40% on your first S$75,000 deposited
Conclusion: Should you switch from the DBS Multiplier account?
To conclude, the DBS Multiplier account is no longer offering high interest, but it’s no worse than the alternatives right now. It’s still a good choice if you have a regular income.
Even with the new lower interest rates, the DBS Multiplier account is still good for the typical office worker in their 20s or 30s, especially home owners. The main benefits are:
Easy to earn interest with salary credit + credit card spend
No minimum spend for credit card, so you’re not forced to spend beyond your means
Get bonus interest with DBS home loan — something you can’t do with UOB or OCBC
I’d also recommend it to gig workers, freelancers or even trainees who are not earning much. As long as you hit at least $500, it’s possible to earn 0.4% by using PayLah in addition to your income.
DBS Multiplier account minimum balance & other things to know
Here are a few essential bits of information to bear in mind:
Minimum age: 18 years old
Nationality: Singaporeans, PRs, foreigners
Initial deposit: None
Minimum balance (daily): $3,000
Fall-below fee: $5 (waived for account holders up to age 29)
Bonus interest cap: $25,000, $50,000 or $100,000, depending of which tier of interest you qualify for
Multi-currency account: Supports AUD, CAD, CNH, EUR, HKD, JPY, NZD, NOK, GBP, SEK, THB, USD
DBS Multiplier Account
Key Features
No minimum salary credit
DBS Multiplier Account is a deposit account with a base interest rate of 0.05% per annum
Bonus interest rates: 1.40% to 3.80% per annum. DBS Multiplier Account 2020 interest rates have been updated as of 1 August 2020
To enjoy bonus interest rates, you need to credit your salary or dividends via GIRO to any DBS/ POSB deposit account that you hold, and transact a minimum of S$2,000 on any DBS/ POSB credit card you hold, DBS/ POSB home loan monthly instalments, DBS/ POSB insurance regular monthly premium, or DBS investments. Your bonus interest rate increases if you transact in more of the above categories
Bonus interest rates for 29-year-olds and below: Credit your income and spend above S$500 via PayLah! to qualify for 0.30% bonus interest rates on your PayLah! retail spend
DBS Multiplier 2020 interest rate updates: As of 1 August 2020, interest rates have been revised for DBS Multiplier account holders with transactions in 1 and 2 categories. Refer to Bonus Interest Rate tab below to see the change in interest rates
Students, NSF, self-employed, salaried or retired individuals are eligible to apply
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