Rates Up: DBS Multiplier and UOB One Increase Rates

Interest rates have been rising for a while now and banks have finally responded accordingly: DBS and UOB have both announced increases to the rates of their flagship banking accounts. Thanks to Oxygen and V for sharing.

DBS Multiplier

It’s been sometime since I talked about DBS Multiplier, and the account gives rates according to the number of categories you fulfil.

Each month, you have to either:

  • credit your salary with DBS;
  • credit your dividends with DBS; or
  • link SGFinDex and request for information retrieval monthly.

On top of this, you have to qualify for at least 1 category:

  • Credit Card Spend
  • Home Loan Instalment
  • Insurance
  • Investments

DBS is proclaiming a rate of 3.5% p.a, but that’s provided you fulfil 3 categories (do note that salary/dividends/SGFindex does not count as a category), make at least S$30,000 of eligible transactions, and it’s only for balances above your first $50,000.

Total eligible transactions per month1 category
First $25,000
2 categories
First $50,000
3 categories
Next $50,000
< S$2,0000.05% p.a.0.05% p.a.0.05% p.a.
≥ S$2,000 to
< S$2,500
0.90% p.a.1.20% p.a.2.00% p.a.
≥ S$2,500 to
< S$5,000
0.90% p.a.1.30% p.a.2.20% p.a.
≥ S$5,000 to
< S$15,000
1.00% p.a.1.40% p.a.2.40% p.a.
≥ S$15,000 to
< S$30,000
1.00% p.a.1.50% p.a.2.50% p.a.
≥ S$30,0001.10% p.a.2.50% p.a.3.50% p.a.

For instance, if you credit your take-home monthly salary of $8,000, make a card spend of $2,000, and have a monthly investment of $6,000, your eligible transaction would be $16,000 for that month. Your first $50,000 will earn 1.50% p.a. interest, and the next $50,000 will earn 2.50% p.a. Assuming you have $100,000, your interest rate for that month is effectively 2% p.a.

Someone who achieves $30,000 in eligible monthly transaction would get 2.50% p.a. on his first $50,000 balance, and 3.50% p.a. on the next $50,000. That’s 3% p.a. for a balance of $100,000.

There was discussion in the Telegram chat group about qualifying for the insurance component which should come in helpful for those looking to maximise their Multiplier returns.

UOB One Account

UOB has also improved rates on UOB One Account, putting the rate of 3.00% p.a. on marketing materials.

Account Monthly Average Balance (MAB)Spend min. S$500 (calendar month) on eligible UOB Card

Total interest
Spend min. S$500 (calendar month) on eligible UOB Card AND make 3 GIRO debit transactionsSpend min. S$500 on eligible UOB Card AND credit your salary via GIRO

Total interest
First S$15,0000.25%0.50%0.50%
Next S$15,0000.25%0.55%0.55%
Next S$15,0000.25%0.65%0.65%
Next S$15,0000.25%0.80%0.80%
Next S$15,0000.25%2.50%2.50%
Next S$25,0000.05%0.05%3.00%
Above S$100,0000.05%0.05%0.05%

To achieve this rate, you need to spend $500 on an eligible card (notable ones include UOB One Card, UOB Lady’s Card, and UOB EVOL Card) and credit your salary via GIRO. The 3.00% rate is on the next $25,000 after your first $75,000, which means someone who has $100,000 will get a blended rate of 1.5% p.a.

A balance of $75,000 will get only 1% p.a. overall. I have used the full extent of my E-Maths tuition skills, checking the sums like a good O-Level student should, and 1% p.a. was indeed the rate for a $75,000 balance.

Conclusion

Some buffs are… buffier than others, it seems. DBS Multiplier is a pretty decent option now to place funds if you can achieve its multiple conditions. UOB One account, on the other hand, still gives relatively weak rates, though its conditions are a lot more fuss-free than that of DBS.

I expect OCBC and other competitors to catch up, so stay subscribed if you want to get more updates. Also, I intend to make the Savings page a lot more happening in time, and you can now see quite a few options to set aside idle funds you may have.


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