How to navigate the changes to DBS Multiplier Account w.e.f. 1 February 2020
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DBS Multiplier Account
How to navigate the changes come 1 February 2020 |
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Dear Fellow Multipliers,
Starting 1 February 2020, we're making some changes to Multiplier.
We'll be honest - we have some good news and some not so good news. But we’ve got your back with some tips to help you navigate and take advantage of the changes. |
| (1) |
Salary Credit: This mandatory category will be renamed to Income. This is the good news as our Income category will be expanded to include Dividends. |
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Before 1 February 2020 |
From 1 February 2020 |
| Salary Credit |
Must be credited via GIRO, with transaction reference codes 'SAL' or 'PAY' |
Will be renamed to Income category [NEW] instead, and will be made up of:
- Salary Credit: Must be credited via GIRO, with transaction reference codes 'SAL' or 'PAY' and/or
- Dividends: Must be credited via GIRO, from Central Depository Pte Ltd (CDP) and/or DBS Multi-Currency Settlement Account (MCSA) [NEW]
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| Dividend Credit |
Qualify under Investment category |
Will be qualified under Income category instead [NEW] |
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| (2) |
Balance Cap: There will be 3 balance caps (instead of 2) as illustrated below: |
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Balance earning higher interest rate |
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Before 1 February 2020 |
From 1 February 2020 |
| Income + transactions in 1 category |
First S$50,000 |
First S$25,000 [NEW] |
| Income + transactions in 2 categories |
First S$50,000 |
First S$50,000
(unchanged) |
| Income + transactions in 3 or more categories |
Next S$50,000 |
Next S$50,000
(unchanged) |
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This is our not so good news, if you are salary crediting and transacting in 1 category and have more than S$25,000 in your Multiplier Account. To circumnavigate this change, consider doing 1 more transaction category to continue earning a higher interest on your balance of S$50,000.
Here’s a summary of the different scenarios and how you can navigate through the two Multiplier changes: |
| Scenario |
What will happen from 1 February 2020 |
How to navigate through Multiplier changes |
| Do not have salary credit OR do not qualify under current salary credit definition (SAL/PAY) |
Dividend credit qualify for mandatory “Income” category |
Use Dividend credit to qualify for mandatory “Income” category and transact in 1 or more eligible categories to start earning bonus interest |
| Salary Credit + transactions in 1 category |
Balance cap for higher interest rates reduced from S$50,000 to S$25,000 |
Consider doing 1 or more of the following transaction categories:
- Credit Card: Spend with any DBS/POSB personal credit card. No minimum spend required.
- Insurance: Purchase any regular premium policy with DBS/POSB (Recognised for the first 12 months)
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Investment:
- Purchase a Unit Trust via DBS/POSB - lump sum, regular savings plan, invest-saver
- Trade in equities online via DBS
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Salary Credit + transactions in 1 category
(of which this category is solely made up of dividends) |
No longer enjoy preferential interest |
Salary Credit + transactions in 2 categories
(of which 1 category is solely made up of dividends) |
Drop to Income + transactions in 1 category AND balance cap for higher interest rates reduced from S$50,000 to S$25,000 |
Salary Credit + transactions in 3 or more categories
(of which 1 category is solely made up of dividends) |
Drop to Income + transactions in 2 categories AND balance cap for higher interest rates reduced from S$100,000 to S$50,000 |
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Meet Jack (first jobber), Sarah (working adult) and Philip (retiree) and see they benefit from the Multiplier effect.
Apart from this, all other qualifying conditions and benefits remain unchanged – still no minimum income, no minimum amount for all categories. Please refer to Section M of Terms & Conditions Governing Accounts (w.e.f. 1 February 2020) for details. |
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Deposit Insurance Scheme:
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. |
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