CRASH COURSE FOR PEOPLE WHO ARE NEW / STILL CONFUSED TO DBS M ACCOUNT
Your Multiplier account interest and other savings accounts (SAYE, MSA, Basic accounts) are SEPARATE.
1. Salary is the most important criterion. Without salary, even if you make a million dollars worth of investment in a given month, your Multiplier interest will still remain at 0.05%.
2a. If your salary is > or = $2,000 net of CPF every month, all you need is a minimum spend on credit card every month (even $1, yes) to qualify for the preferential interest rate. An additional category in housing loan, investments, insurance will bring you to the next tier of interest.
2b. Supp card spending will accumulate towards Principle cardholder's credit card transactions. If your spouse is holding a supp card and wishes to enjoy the Multiplier interest for example, do get your spouse to just apply for principal credit card.
2c. Credit card fee waivers for DBS Bank can now be applied for via Internet Banking.
3a. There is no need for you to change your salary crediting account as long as it is already with a POSB/DBS account as the system will automatically pick up the PAY/SAL transaction code and recognise it. Therein lies the convenience of the Multiplier account.
3b. If your salary does not come in as a PAY/SAL but for instance as a GR transaction, and your HR did mention it is a PAYROLL / SALARY, the system will pick it up and attempt to process it. This is also provided your HR keyed in the correct GIRO code for salary / pay crediting.
4. The preferential interest rate will only apply on the FIRST $50,000 balance. Remaining balances will earn 0.05%. Thus if you have excess, you can consider rolling it into other financial products or even roll it in fixed deposit to just get anything higher than 0.05%
5. The basic interest of 0.05% is applied as per normal at the end of the month. The preferential interest rate balance will be given to you ~ 7 working days, I usually get mine on the 9th of the following month.
6. You will be able to monitor the interest rate via the Bank & Earn summary. But tbh, it is quite a hassle for me so I just monitor the figure via the absolute amount when I consolidate my finances on Excel every mid month and end month and tally with my iBanking figures.
7. Do note that the Multiplier account has to be opened BEFORE you purchase an insurance product / savings plan through DBS Bank for it to be recognised. For housing loans with DBS, no such requirements. BOTH Cash & CPF components of the housing loan are recognised as eligible transactions.
8. Investments that qualify for the investments category can be viewed on the website. To point out, UT lump sum investments recognised only after the 7 days cancellation period. Meaning to say if you did it close to the end of the month, it might only be recognised in the subsequent month.
9. Do note that your DBS Multiplier also doubles up as a multi-currency account. You can store forex in your M account simply using Internet Banking by transferring $ to yourself (From DBS Multiplier to DBS Multiplier, yes, same account, but different currency; there will be a drop down menu for you to select).
10. Fall below fee of $5 for balances under $3,000. Early closure fees for closures 6 months or younger applies.
11. Being a savings account, there is no lock in period whatsoever. Once you stop your salary crediting, or only have salary crediting and no other transactions, it will revert back to 0.05%. It is effectively to retain clients and encourage them to continue using their services. It is not too good to be true because there is a cap which is $50,000.
An average figure of how the Multiplier works:
30 year old dude with average income @ $5k take home, >$50,000 cash balance
With $1 credit card spend -> 1.9% ~ $79.67 monthly interest on a balance of $50,000
Now awaiting my credit card approval.
