DBS changed its Mutiplier plan

[demoforce1]

Monday Z74 rocket to $3. Standing by to sell...

Posted on my Graphite iPhone 12 Pro Max with the HardwareZone Forums app

too far to $3

 

[reddevil0728]

but they recently merged with aviva leh. so should have greater lasting power with more capital now? that could hold the rate for at least some more time to go bah...

They acquired aviva. Need money to buy aviva.

 

[revhappy]

Did a bit of research on the bus this morning. My strategy to maximise my gains on my fully liquid cash holdings will be as follows:

1. Keep first $3k in Multiplier, for ease of withdrawal, no fees, and save hassle of updating my bank accounts with 101 people and organisations i do business with. Won't bother to close it, as banks seems to be changing their T&Cs every 3mths nowadays...
2. Continue to keep next $10k in Singlife for 2%.
3. Continue to keep next $10k in Gigantiq for 2%.
4. Signup for Dash Easyearn, and put in next $20k for 1.8%.
5. Any excess, put into Singlife for 1%.

After that, pick the option to stop earning interest on my Multiplier, and start earning cashback instead, so that i can still get money on my salary credit, card spends, and investment.
https://www.posb.com.sg/personal/deposits/bank-earn/cashback-bonus

You can convert your multiplier account to My account which is 0 fall below fee account. I did that, ever since dbs nerfed the interest rate on multiplier account. I went one step further and cancelled DBS credit cards. I will reapply after one year for the sign up promo.

undefined HardwareZone Forums app

 

[TiedInsurer]

You can convert your multiplier account to My account which is 0 fall below fee account. I did that, ever since dbs nerfed the interest rate on multiplier account. I went one step further and cancelled DBS credit cards. I will reapply after one year for the sign up promo.

undefined HardwareZone Forums app

Huh really? I thought this account has no fall below fee, but has a $2/mth account maintenance fee? Let me go check with DBS CS....

 

[cassowary18]

Huh really? I thought this account has no fall below fee, but has a $2/mth account maintenance fee? Let me go check with DBS CS....

I believe the maintenance fee only applies if you want paper statements.

 

[EarthlyTreasure]

Huh really? I thought this account has no fall below fee, but has a $2/mth account maintenance fee? Let me go check with DBS CS....

$2 monthly account fee if u request monthly hard copy statements. If on estatement Nil monthly account fee.

 

[EarthlyTreasure]

You can convert your multiplier account to My account which is 0 fall below fee account. I did that, ever since dbs nerfed the interest rate on multiplier account. I went one step further and cancelled DBS credit cards. I will reapply after one year for the sign up promo.

For multiplier account, service charge for fall below is waived for customers up to 29 years old.

 

[reddevil0728]

For multiplier account, service charge for fall below is waived for customers up to 29 years old.

this is not a choice though

 

[Squaredot]

Monday Z74 rocket to $3. Standing by to sell...

Posted on my Graphite iPhone 12 Pro Max with the HardwareZone Forums app

My hope nia
It's a long way to $3!

 

[xiaosinsinful]

With the revision of interest rates, would there be any downside to switching from multiplier > cashback.

i think interest will be higher (got this idea from another post)

can convert back when interest is higher?

 

[vsvs24]

For multiplier account, service charge for fall below is waived for customers up to 29 years old.

Also waived if linked to Vickers

 

[fr33d0m]

Digital banks are not magicians. Interests don’t come from the air.

What products are digital banks going to push to pay for interests?

It is very easy to collect deposits as long as you pay higher interests. But how does a bank earn income to pay interests on deposit is the question.

Currently there is no liquid safe instrument paying 2%.

How SingLife and the alike achieve higher interest is through term mismatch.

 

[Tp101s]

That’s why they are there to win the license while (some of) the rest spend time kpkb in this forum

Digital banks are not magicians. Interests don’t come from the air.

What products are digital banks going to push to pay for interests?

It is very easy to collect deposits as long as you pay higher interests. But how does a bank earn income to pay interests on deposit is the question.

Currently there is no liquid safe instrument paying 2%.

How SingLife and the alike achieve higher interest is through term mismatch.

 

[reddevil0728]

Digital banks are not magicians. Interests don’t come from the air.

What products are digital banks going to push to pay for interests?

It is very easy to collect deposits as long as you pay higher interests. But how does a bank earn income to pay interests on deposit is the question.

Currently there is no liquid safe instrument paying 2%.

How SingLife and the alike achieve higher interest is through term mismatch.

in the short term they can burn money to gain market share. they dun have to perpetually give higher interest

 

[fr33d0m]

in the short term they can burn money to gain market share. they dun have to perpetually give higher interest

If they are going to offer 2%, 1 billion deposit is very easy to achieve and has no impact to the rest of the banking system(total deposit in SG market is at least half trillion). The cost is 20 million without any other costs(compliance, marketing and people). 10 billion costs 200 million.

How much can they burn without making any impact to the market?

 

[reddevil0728]

If they are going to offer 2%, 1 billion deposit is very easy to achieve and has no impact to the rest of the banking system(total deposit in SG market is at least half trillion). The cost is 20 million without any other costs(compliance, marketing and people). 10 billion costs 200 million.

How much can they burn without making any impact to the market?

they can put in places a lot of restrictions, e.g. Singlife 2% for first 10k only, just so that they can gain market share. once they gain market share, they have customer information, there's a lot more things they can do.

There will definitely be a lot of disruption when there's new kid on the block. but slowly it will still gravitate to steady state

 

[fr33d0m]

they can put in places a lot of restrictions, e.g. Singlife 2% for first 10k only, just so that they can gain market share. once they gain market share, they have customer information, there's a lot more things they can do.

There will definitely be a lot of disruption when there's new kid on the block. but slowly it will still gravitate to steady state

What impact? Banking is a number game, especially after the crisis suppressing all kinds of shadow banking activities. Compliance cost shoots through the roof with more non-traditional banking activity.

Deposit is the easy game. How to loan out the money with higher interest is the difficult game. SMEs in SG is quite well served.

 

[lazybee]

Digital banks have some major advantages over the retail banks in term of expenditure, and some of the savings will be passed on to consumers.

- No need for physical stores and ATMS (no rental, maintainence, staff, etc).
- If everything is online, some of low value work can be done though oversea contract staffs which is cheaper.
- Emphasis of mobile payment and online banking, integrate insurance and others (Grab is planning to do that). Technically also bypass insurance agents fees, master & VISA, etc.

If you compare the interest rate of retail vs online banks in USA, it is can be at least 1% more in difference.

There is some increasing free rider issue for the retail banks. I could ride on ATM of retail banks by putting a minimum amount but I park the bulk of $$ in online banks. This is already happening with CIMB saver, BOC, etc. These banks do not have enough ATM for decent usage and ppl will ride on local banks ATM.

 

[lucky_]

After that, pick the option to stop earning interest on my Multiplier, and start earning cashback instead, so that i can still get money on my salary credit, card spends, and investment.
https://www.posb.com.sg/personal/deposits/bank-earn/cashback-bonus

I am also planning to do this. I read on the POSB Cashback FAQ (https://www.posb.com.sg/iwov-resources/media/pdf/deposits/cashback-bonus-faq.pdf) that upon successful switching, any preferential interested not yet credited will be forfeited. Does this mean we should only switch over after the Dec 2020 interested has been credited (sometime around 9 Jan 2021)? Will this affect the cashback interest for Jan ?

 

[Heyland]

Preferential interest is in