Nerfed: DBS Multiplier Slashes Interest Rates
Banks are slashing interest rates, and DBS Multiplier is being nerfed… again. For the third time this year, DBS Multiplier is being revised, this time rather drastically.
For people who clock only 1 category on top of salary crediting, the interest are reduced from anywhere between about 40% to 50%:
| Total Eligible Transactions | Currently | From 1st Aug |
| <$2,000 | 0.05% pa | 0.05% pa |
| ≥$2,000 to <$2,500 | 1.40% pa | 0.70% pa |
| ≥$2,500 to <$5,000 | 1.60% pa | 0.90% pa |
| ≥$5,000 to <$15,000 | 1.80% pa | 1.10% pa |
| ≥$15,000 to <$30,000 | 1.90% pa | 1.20% pa |
| ≥$30,000 | 2.00% pa | 1.30% pa |
Account holders who clock 2 categories on top of salary crediting, the reduction in rates aren’t as drastic, but still pretty significant:
| Total Eligible Transactions | Currently | From 1st Aug |
| <$2,000 | 0.05% pa | 0.05% pa |
| ≥$2,000 to <$2,500 | 1.80% pa | 1.30% pa |
| ≥$2,500 to <$5,000 | 2.00% pa | 1.50% pa |
| ≥$5,000 to <$15,000 | 2.20% pa | 1.80% pa |
| ≥$15,000 to <$30,000 | 2.30% pa | 1.90% pa |
| ≥$30,000 | 3.50% pa | 2.80% pa |
These represent drops of 17% to 27%. Stings, but not entirely devastating.
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How now, white rabbit?
If you find yourself only hitting 1 category on top of salary crediting, I think it’s an easy decision to look at alternatives to bank savings accounts instead, such as Singlife Account, Elastiq, and recently released Dash EasyEarn. Given that Multiplier at the 1 category tier only supports up to $25,000, you shouldn’t have much issues with the Singlife’s $10,000 cap for 2.5% pa, and EasyEarn’s $20,000 cap for 2.0% pa.
If you have been fulfilling 2 categories on top of salary crediting, be thankful that the drop isn’t as bad as what OCBC and UOB did to their savings accounts. If you can manage $5,000 of monthly transactions monthly, 1.80% pa isn’t too far off from the insurance products which emulate savings accounts.
We should probably coin a term for such plans now that they’re getting increasingly relevant – how about Insurance Savings Account, or Liquid Insurance Savings? Hmm…
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