April continues being a month of bad news, and DBS Multiplier is reducing its interest rates for account holders who only fulfil one category on top of Salary.
Salary + 1 category for first $25,000:
|Total Eligible Transactions||Current||From 1st May|
|<$2,000||0.05% pa||0.05% pa|
|≥S$2,000 to <S$2,500||1.55% pa||1.40% pa|
|≥S$2,500 to <S$5,000||1.85% pa||1.60% pa|
|≥S$5,000 to <S$15,000||1.90% pa||1.80% pa|
|≥S$15,000 to <S$30,000||2.00% pa||1.90% pa|
|≥S$30,000||2.08% pa||2.00% pa|
The interest rate drops are nowhere as drastic as UOB One’s nerfs, so most DBS Multiplier users shouldn’t lose too much sleep over this.
Besides, this only affects those who qualify for one category on top of Salary. DBS users who have more than $25,000 would already find another category to fulfil in order to get higher interest on a $50,000 balance. Those rates aren’t affected.
Personally, I’m glad my mortgage is with DBS, so it’s really easy for me to clock 2 categories. With UOB One out of the picture, DBS Multiplier is now the account of my choice.
If you have about $20,000 and are affected by this change, you may consider StanChart’s JumpStart account if you’re 26 and under… although I wonder if that’s next on the chopping block as banks start cutting interest one by one.
You can also consider SingLife’s Account to help out with $10,000. I’d put money in there first since most banks have reduced their interest rates. 2.5% pa on $10,000 isn’t too bad, even if the return isn’t guaranteed (and from what’s happening these days, clearly neither are bank rates).
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