DBS changed its Mutiplier plan

[Eternit]

I don't know why you need to purchase $30k but...

Buying ETF doesn't mean you buy once.
If you are buying from Vickers, every BUY trade will be recognised under the Investment category regardless of the trade amount.
If you are buying via RSP, the RSP will only be recognised for 12 consecutive months if and only if the RSP is setup after Multiplier is.

If you want, you can buy 6 consecutive SSBs and set CDP DCS to your DBS/POSB account.
6 months later, you will have interests from SSB streaming in every month and thus qualify for the Investment category for the next 10 years (assuming Multiplier rules stay the same).

Don't quite understand the SSB part. First of all is SSB even counted towards the investment portion?

And why 6 consecutive SSB purchase and why qualify for next 10 years?

 

[swordsly]

Don't quite understand the SSB part. First of all is SSB even counted towards the investment portion?

And why 6 consecutive SSB purchase and why qualify for next 10 years?

Subscribing to SSB itself doesn't.
The interest that SSB pays biannually does.

SSB pays every 6 months. Subscribing to 6 consecutive SSBs means that every month, 1 of the SSB will pay its interest into the DCS in your CDP.
Qualify for the next 10 years if you hold your SSB till maturity and assuming DBS doesn't change its rules.

Q3) My joint account holder and I credit our dividends from Central Depository (CDP) into a joint account.
We both have our own Multiplier accounts. How will the dividends be recognised?
The combined total dividend credits in that joint account will be recognised.
Example:
Michael and Sally have CDP dividend credits (S$800 and S$700 respectively) in a joint DBS account. They
both have their own Multiplier Accounts.
They are each accorded a total dividend credit amount of S$1,500.

This method was shared by another forumer upthread. I'm still subscribing and will only know next year.

 

[limster]

Subscribing to SSB itself doesn't.
The interest that SSB pays biannually does.

SSB pays every 6 months. Subscribing to 6 consecutive SSBs means that every month, 1 of the SSB will pay its interest into the DCS in your CDP.
Qualify for the next 10 years if you hold your SSB till maturity and assuming DBS doesn't change its rules.

This method was shared by another forumer upthread. I'm still subscribing and will only know next year.

Question : would normal dividends from stocks and shares from CDP to DBS be the same thing as interest from SSB? i.e. if you are already receiving CDP dividends, are you getting the bonus already?

 

[FreshGradDays]

Question : would normal dividends from stocks and shares from CDP to DBS be the same thing as interest from SSB? i.e. if you are already receiving CDP dividends, are you getting the bonus already?

Yes and yes.

 

[swordsly]

Question : would normal dividends from stocks and shares from CDP to DBS be the same thing as interest from SSB? i.e. if you are already receiving CDP dividends, are you getting the bonus already?

Yes. So long it's CDP. Dividends I can confirm.

 

[wilflare]

Subscribing to SSB itself doesn't.
The interest that SSB pays biannually does.

SSB pays every 6 months. Subscribing to 6 consecutive SSBs means that every month, 1 of the SSB will pay its interest into the DCS in your CDP.
Qualify for the next 10 years if you hold your SSB till maturity and assuming DBS doesn't change its rules.



This method was shared by another forumer upthread. I'm still subscribing and will only know next year.

to get SSB must get CDP account right?

 

[swordsly]

to get SSB must get CDP account right?

Yes 10char

 

[kindman1]

For SSB, only the interest counts towards the quantum of eligible transactions? Like that, hard to reach $30k unless the interest or salary super high. Am I right?

 

[silverbomb]

For SSB, only the interest counts towards the quantum of eligible transactions? Like that, hard to reach $30k unless the interest or salary super high. Am I right?

only interest counts, not the SSB amount invested.

 

[buaytuckchek]

only interest counts, not the SSB amount invested.

But when you redeem the SSB, it is counted.

So to max out, maybe every month just move in and out $30k. Transaction cost would be $4 x 12months. Assuming best case scenario of $50k in Multipler account with 3.5% interest, it can cover the $48/annual cost to buy-and-sell the SSB. But the problem is no guarantee that you can buy back $30k each time.

 

[Lewis.T]

But when you redeem the SSB, it is counted.

So to max out, maybe every month just move in and out $30k. Transaction cost would be $4 x 12months. Assuming best case scenario of $50k in Multipler account with 3.5% interest, it can cover the $48/annual cost to buy-and-sell the SSB. But the problem is no guarantee that you can buy back $30k each time.

Haven't done the math, but assuming you don't want to start using their invest saver or try and meet other criterias, isn't that too much hassle to earn ~2% more per annum on 50k which is subject to change anytime and paying an extra $48 per year?

You are also forgoing the long term interest (10 year) of ~2+% on SSB?

Coupled with the fact that as of now you are unlikely to be able to get your desired 30k buy allocation for SSB.

Right away it sounds like a horrible idea to me.

 

[Buzy_bee]

Haven't done the math, but assuming you don't want to start using their invest saver or try and meet other criterias, isn't that too much hassle to earn ~2% more per annum on 50k which is subject to change anytime and paying an extra $48 per year?

You are also forgoing the long term interest (10 year) of ~2+% on SSB?

Coupled with the fact that as of now you are unlikely to be able to get your desired 30k buy allocation for SSB.

Right away it sounds like a horrible idea to me.

Agree on the hassle part. Should just explore citi Maxigain. 2.32% interest after one year placement.

 

[Sinkie]

Interesting

If say your salary credited on 2nd of may, then your multiplier account is opened on 3rd of may, you will not be entitled the interest for month of may

 

[Han Shot First]

What about the situation where one POSB InvestSaver is setup by 1 joint account holder to make regular investment deductions from the joint bank account? Does the POSB InvestSaver deductions count as "Investment" category for both of the personal DBS Multiplier accounts? Or only for the Multiplier account of the joint account holder who actually setup the RSP?

bump! Does the deduction from the POSB joint account count as "Investment" for all the DBS Multiplier accounts?

 

[af7680]

Any joint dbs account fine or it has to be some specific joint account ( saw a post mentioning posb esaving joint account )?

 

[jackieatbtu]

Correct. Happened to me when my ssb dividend given on the first wasn’t counted for the month I opened my multiplier. I opened on the 7th and that month I only got credit card and salary counted.

Interesting

If say your salary credited on 2nd of may, then your multiplier account is opened on 3rd of may, you will not be entitled the interest for month of may

 

[ixoral]

Doesn’t matter, any joint dbs/posb acc

Any joint dbs account fine or it has to be some specific joint account ( saw a post mentioning posb esaving joint account )?

 

[af7680]

will dividend from shares purchased using SRS considered as investment category ?

 

[sellun]

I can just purchase STI ETF $100/mth using POSB RSP for extra interest for 1 year, then buy another RSP for ABF ETF to be eligible for another year of extra interest and sell the STI ETF and repeat again on the 3rd year?

Assuming I keep 50k inside throughout.


Sent from Xiaomi MI MAX 2 using GAGT

 

[Trazora]

I can just purchase STI ETF $100/mth using POSB RSP for extra interest for 1 year, then buy another RSP for ABF ETF to be eligible for another year of extra interest and sell the STI ETF and repeat again on the 3rd year?

Assuming I keep 50k inside throughout.

Sent from Xiaomi MI MAX 2 using GAGT

The STI ETF RSP need to be terminated and the ETF units fully sold off min 6 months before you reapply the STI ETF RSP for it to count to fulfilling one of the category and transaction amount for higher bonus interest.