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DBS Multiplier

by Saiful Haris
Rabbit on grasspatch

I’m sure you’ve seen the DBS Multiplier ads showcasing adorable bunnies multiplying at exaggerated speeds depicting the amount of interest you’d get by signing up for it. I’ve placed the ad below in case you missed it. So, what exactly is the DBS Multiplier account?

The DBS Multiplier account is a savings account that allows you to earn up to 3.8% interest rate per annum. With May 2019’s update, it’ll allow you to earn interest on bigger savings of up to $100,000. Just like most savings accounts with bonus interest rates, there are stipulations which one must adhere to.

You can apply for a DBS Multiplier account online thus saving you the hassle of a trip to the nearest bank as well as the time spent waiting for your turn. It is very easy to apply for a DBS Multiplier account as you are not required to deposit funds upon account opening and there are no monthly fees. There is however a minimum daily average balance of $3,000. The fall-below fee of $5 is waived until you are 29 years old or if you are a new customer to DBS/POSB. Apply for a DBS Multiplier account here.

How does DBS Multiplier work

DBS Multiplier is one of the easiest savings account plans that allow you to multiply your savings by crediting your salary and completing eligible transactions within a month. This product has a low barrier of entry ie. you only need to incur $2,000 worth of eligible transactions per month (Salary credit + Transaction(s) in 1 qualifying category). This means that as long as your minimum monthly transactions equate to $2,000 you’ll earn a minimum of 1.55% per annum on the first $50,000.

What are the qualifying categories

  • Salary credit via GIRO (this is compulsory)
  • Credit card spend (there is no minimum spend required)
  • Getting a home loan from DBS/POSB
  • Buying insurance from DBS/POSB
  • Investing with or crediting your investment dividends to a DBS/POSB account

Read: What you should know about the POSB Invest Saver

Here is a top-level explanation of the various qualifying categories.

  1. Salary credit via GIRO
    Salary must be credited via GIRO, with transaction reference codes ‘SAL’ or ‘PAY’. You can credit your salary to any of your existing DBS/POSB accounts. Based on my experience, I would recommend you to credit it to your DBS Multiplier account. This is because the daily interest is calculated based on the balance on your DBS Multiplier account
  2. Credit card spend
    Monthly spend consists of retail/cash advance transactions posted within the 1st & last calendar day. Since there is no minimum spend required, even a spend of $1 on your credit card will be recognised. Do note that eligible transactions across main cards & supplementary cards are accorded to the main cardholder
  3. Getting a home loan from DBS/POSB
    Monthly instalment(s) due on your home loan(s) with DBS/POSB will be recognised this includes cash and Central Provision Fund (CPF) components
  4. Buying insurance from DBS/POSB
    Purchase any of the regular premium policies after opening your Multiplier Account. However, only monthly premiums due on in-force policies past free-look/cancellation period will be recognised during the first 12 months
  5. Investing with or crediting your investment dividends to a DBS/POSB account
    Much like insurance, monthly contribution amount for Unit Trust Regular Savings Plan and/or POSB Invest-Saver will be recognised for the first 12 consecutive contributions per investment fund. Dividends must be credited by GIRO from CDP and fully settled “BUY” equity trades via Vickers Online will be recognised

For more information and to have a better understanding of the stipulations, you can either proceed to the DBS Multiplier website or contact them directly.

Read: My POSB Invest Saver Journey

How are interests calculated

The base interest rate of the DBS Multiplier account is very low. It starts at 0.05% per annum but allows you to earn bonus interest by doing any combination of the categories mentioned above. Unlike other savings account with banks like OCBC, there is no minimum amount for each action as long as the total transactions for the month are at least $2,000, you qualify for bonus interest. If your take-home pay is $1,800 and you do not spend on any of the qualifying categories, you would only get 0.05% per annum. However, if you spend $200 on a qualifying category, for example, insurance that brings the total up to $2,000. Your interest rate then jumps up to 1.55% per annum. I’ll cover more on this as we go along.

What are the transaction brackets

Total Monthly Transaction
(Salary Credit + 1 Transaction)
(Salary Credit + 2 Transactions )
Below $2,000
0.05% p.a.
0.05% p.a.
$2,000 to $2,499
1.55% p.a.
1.8% p.a.
$2,500 to $4,999
1.85% p.a.
2% p.a.
$5,000 to $14,999
1.9% p.a.
2.2% p.a.
$15,000 to $29,999
2% p.a.
2.3% p.a.
$30,000 and above
2.08% p.a.
3.5% p.a.

What the above table means is that if you transact in more categories and increase your monthly eligible transaction amount, you will be able to earn higher interest rates. Do note that the above figures are based on account balances of up to $50,000.

Who should apply for DBS Multiplier

Since it is compulsory to credit your salary this account is meant for those who have a regular paycheck. It is therefore not great for self-employed, freelancers, retirees so on and so forth. Based on my own experience and customer journey, I would say that this is great for fresh grads, low-income earners (assuming their monthly nett income is at least $1,600) as well as high-income earners.

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