DBS recently announced changes to Multiplier account on 1st May. There is a write up on the changes over here.
The Multiplier will require you to have salary credited and at least 1 of the 4 categories namely; Credit card spend, Home loan installment, Insurance and Investment.
Out of the 4 categories, we shall look at the simplest 2 to fulfill. The first will be Credit card spend where you just need to spend $1 every month or just set recurring payment to any low-cost subscription you have. For 2nd categories will be investment and while many are not investment savvy, the SSB bond ladder which is fully backed by Singapore Government. Your principal investment and interest payments won't be affected by the market.
The sweet spot to earn 2% interest will be monthly eligible transactions of $2500 and with 2 categories which can easily be done with just salary credit. Now, what is SSB Bond Ladder?
Singapore Saving Bond or SSB pays you coupon every 6 months and you will get your capital back when It mature which is 10 years period. The latest SSB rates is available here and here's how to build the ladder.
Assuming you start buying SSB from Jan 2019 for 6 months and each purchase is $500 which is the minimum sum. The total cost will be $3000 and the transaction fee of $12. This ladder will last you for 10 years and by then maybe Multiplier won't be around. With this trick, you are collecting an average of 2% interest from SSB and 2% from Multiplier.
As not everyone has a home loan with DBS and as the insurance they only take the first year premium as a valid transaction. It's rather pointless to focus on the 2 categories. To me, the easiest way to unlock 2 eligible categories will be Credit card spend and investment via SSB. Do note that for SSB purchase it can only be cash and not SRS account as the dividends won't be credited to your DBS account and you can purchase up to a cap of $200,000.
Previously DBS tease about the new multiplier account with a cute rabbit. There is a previous write up on what could be the possible revised changes and the new T&C. The write up can be read here.
You will be able to earn interest rate from 1.55% to 3.8% per annual.
Account balance increased to $100,000
Salary and Spend
No minimum amount needed for any category as long as your monthly total eligible transactions add up to S$2,000 or more.
The number of categories remains the same with Salary as a compulsory requirement and 4 other categories. Below table showing how much interest you will receive base on your eligible spending per month and account balance in Multiplier account.
Credits: DBS
There is a calculator on DBS website where you can clink and play around and you will have the results on how much interest you will be earning per annual. I tried with what an average salary worker scenario and the results I get is 2.2% per annual.
Monthly installment (s) due on your home loan(s) with DBS/POSB will be recognized
Cash and Central Provision Fund (CPF) components included
POSB/DBS Insurance
In short, those insurance plans that are unwriting by POSB/DBS will be eligible. The full list can check from DBS Mulpliter website.
Investment with POSB/DBS
This is a little interesting as there are many ways to trigger this category. without much effort.
Credit your dividends to any DBS/POSB deposit account
Those investing with Reits or dividends shares shouldn't have this issue but need to plan on how to get dividends every month without fail (this can be quite tricky as companies might change their dividends policy like recently DBS changed the dividends from semi-annual to quarterly).
Luckily there is an alternative way and you only need to invest $500 over a consecutive period of 6 months. The method is called SSB Bond Ladder. How does this work? OK, SSB is semi-annual interest payout so If you apply for it for 6 months, you will have dividends credited into your DBS/POSB account.
Credits: Kyith
Purchase a Unit Trust via DBS/POSB
For point numnber 3, you can purchase G3B and ABF and switch around every 12 months. To me these 2 are the safest you can buy and hold shall you need to increase your total transaction.
Valid for Unit Trust Lump Sum Investments, Unit Trust Regular Savings Plan and POSB Invest-Saver purchased after opening your Multiplier Account
The investment amount of your Unit Trust Lump Sum Investment will be recognised after you free-look/cancellation period
Monthly contribution amount for Unit Trust Regular Savings Plan and/or POSB Invest-Saver will be recognised for the first 12 consecutive contributions per investment fund
Purchase(s) must be made in cash, not using funds from your CPF or Supplimentary Retirement Scheme (SRS) account
Trade in equities online via DBS
Fully settled "BUY" equity trades via Vickers Online will be recognised
For transactions via DBS Vickers online trading platforms, only the primary account holder will be accorded the transaction amount
Conclusion
The increase of account balance cap from $50,000 to $100,000 is much welcome for additional interest but do note that SDIC only covers up to $75,000. This account is good for those with excess cash and has more than $50,000 holding with DBS/POSB to fully benefits from the interests. There is another product from POSB which I believe not many people know is POSB Cashback Bonus. This product works the same way as Multiplier but It doesn't require you to have money In your account. For those that just started working, perhaps can have a look at it first before committing to Multiplier account
The points shown excludes DBS/POSB cards that earn cash rebates, Smile points & Takashimaya bonus points. It displays the latest posted transactions on DBS Points earning cards.
If a transaction is missing, it may not have been posted yet. If you are a Supplementary Cardholder, your points will be credited into the Principal Cardholder’s account.
Begin the process by clicking on the Virtual Assistant icon located at bottom right of DBS/POSB main page. It works the same for both.
It will open up a chat box. Type Dbs Points
Click on View reward and it will ask for your authentication. Once that is done, you will see a few other options. Click on Points Per Transaction.
It will show you the latest 5 transactions but you can click onto See More for more transactions.
Conclusion
This function might not be new but surely it is new to me. Now I can save time by not waiting on hold on the phone and every transaction are shown on virtual assistant. You are able to see the bonus points that are being credited to you for DBS Woman’s World Card and DBS Woman’s Card. Another bonus perk is you are able to see which MCC your spending goes to as some of the bonus points will be excluded.
It's the festive of giving once again. While banks are having promotions for your spendings like UOB spend $4500 to redeem a Fitbit.
Althought i have redeem a Fitbit but i shall not cover it in here. The interesting bank is DBS which i felt they are more generous in the xmas promotion.
You just need to spend $1500 per month to qualify to spin the in DBS Lifestyle App. The app will show you a notification when you reach the spending amount.
There is two qualifying period which I shall not emphasis on the dates. The details are in here. For my own spend, I won a $75 Food Panda and $75 Zalora vouchers.
Apart from the two that I won, what can be won are Cash Credit, Grocery Vouchers from RedMart, Shopping Vouchers from LAZADA or ZALORA and Transport Vouchers from Grab.
Apart from the sure win prizes, DBS is also giving 500,000 AirAsia BIG Points for the top 20 shoppers with the highest spend for each qualifying period and I am very glad to be one of the top spender.
500,000 Air Asia Points
According to DBS it is enough to redeem for return tickets from Japan for 6 person. However when I try to redeem it's far away from what is stated.
I did a booking for 4 people which is traveling from Sin - Hnd and Cts - Sin. I have to top up around SGD 700 as I believe the mentioned 6 people are excluding taxes and check-in luggage. Since it's free from my spending I guess the top up of SGD 700 is worth it as it would cost me SGD 2400 If I book it without the points.
Below are the Airasia points required for traveling to Tokyo in Dec 2019 in case anyone is interested. Points are base on pre person excluding taxes and check-in luggage.
Points per person excluding taxes etc.
Moving forward, I believe DBS will keep on rolling wonderful gifts for Xmas promotion. Do check out on DBS Liftstyle app for more discounts.
