With the plethora of product offerings from the consumer banks in Singapore, it can get quite overwhelming to try to understand which bank savings account gives the highest interest rates in 2018. Many of these “hybrid” savings accounts require the account holders to perform a myriad of tasks, or like what the personal finance community likes to call it- jump through multiple hoops. Then again, a gainfully employed person probably can only choose one bank account to credit his or her salary into. Young working adults face the added constraint of being unable to consistently achieve a minimum spend on their credit cards too. Heartland Boy understands that this can be an incredibly frustrating affair because he has also spent significant time to compare the various bank savings accounts in Singapore. With a combination of research and personal experience, Heartland Boy will spill the beans on how to get the highest interest rate on your bank savings accounts.
DBS Multiplier Account – 2% For First $50,000
Ever since the DBS Multiplier Account was launched in late 2017, Heartland Boy and Heartland Girl simply could not get enough of it. Read this review of the DBS Multiplier Account to understand how it works before you can understand the following hacks outlined below. Here are some neat tricks on how they managed to maximise the interest rate for their respective DBS Multiplier Accounts jumping through as little hoops as possible.
- Heartland Boy and Heartland Girl each opened their own DBS Multiplier Account online. It is extremely convenient and only took minutes.
- Subsequently, they went down to the bank branch together and opened a joint POSB Everyday Savings Account bearing both their names. After joint account is opened, they each deposited $250 to ensure that this account does not fall below the average daily balance of $500. [Note that this step must be done in person]
- [Hack 1] Heartland Girl re-directed her Salary crediting into this new joint account by informing her HR department.
- [Hack 2] Under the “Direct Crediting Services” scheme, both Heartland Boy and Heartland Girl changed their respective bank accounts with Central Depository (‘CDP’) to the joint account that they have just opened. This ensures that all future dividends are credited into the POSB Everyday Joint Savings Account. [Note that Hack 2 is still in progress and Heartland Boy cannot confirm that it has achieved its intended effect yet]
Diagram 1: Heartland Couple’s Salary and CDP Dividend Hacks For DBS Multiplier
Rationale for Hack 1: “Salary Crediting Into Joint Account”
By having only Heartland Girl credit her salary into the joint bank account, and because the joint bank account bears both their names, both Heartland Boy and Heartland Girl will fulfil the salary crediting components of their respective Multiplier Accounts. Note that it must be either a POSB or DBS joint bank savings account for this hack to work. This leaves Heartland Boy eligible to credit his salary with other bank savings accounts (such as OCBC 360) where a higher interest rate is awarded for salary crediting.
The downside is that Heartland Girl must perform monthly transfer regularly to “retrieve” her salary from their joint savings account. If she is not fast enough, she runs the risk that Heartland Boy will lay claim to it first.
Another nifty hack is for both account holders to credit their respective salaries into the joint account. When DBS Multiplier calculates the salary component, it will aggregate BOTH salaries from the joint account! For illustration, if Account Holder A receives nett $2,000 as salary while Account Holder B receives nett $3,000 as salary, DBS recognises $5,000 as salary crediting for both Multiplier accounts. This ensures that both account holders get promoted to the next tier at an accelerated rate!
Rationale for Hack 2: “CDP Dividend Hack”
Since Heartland Boy is an active investor, he receives regular dividends from his equity portfolio that are credited into his CDP account. After setting up the joint bank account, Heartland Boy informed CDP to replace his previous bank account number to the joint bank account. Therefore, when the joint bank account receives future dividends, it would help both Heartland Girl and Heartland Boy satisfy the “INVEST” component of their respective Multiplier Accounts.
Likewise, since Heartland Girl has done the same, the dividends are aggregated when Multiplier tallies the monthly records. Further bump!
By executing these simple strategies, Heartland Boy and Heartland Girl should comfortably achieve a minimum interest rate of 2% on the first $50,000 for their respective Multiplier Accounts.
Bonus Tips For DBS Multiplier
Because any 2 persons can open a joint bank account in Singapore, there is no need to find a spouse just to execute this strategy. Mistress would do just fine, just don’t get caught.
On a more serious note, the Multiplier is the perfect savings account for students. Team up with a family member or find a part-time job (no minimum salary crediting required) to satisfy the salary component. Don’t forget to apply for a DBS Live Fresh Student Credit card to fulfil the credit card category as well!
UOB One Account- 2.43% For First $50,000
The UOB One Account gives high interest rates only if the account holder is able to set aside $50,000 as savings deposit AND able to spend at least $500 on a participating UOB credit card. Find out how the UOB One Account works in this review. When Heartland Boy compares UOB One Account to DBS Multiplier, he ranks the UOB One Account as inferior since the “taller hoops and hence increased difficulty” suggest that is not within everyone’s reach.
Hack 1- Prioritise Your UOB One Credit Card
The most important criteria to get bonus interest rates on the UOB One Account is to achieve minimum spend of $500 on a qualifying UOB Credit Card. Because the interest rate from UOB One Account drops to 0.05% per annum if monthly credit card spend is not achieved, Heartland Boy prioritises the use of his UOB One Credit Card. For example, he automates the deduction of essential regular expenditure such as telco bills on his UOB One Credit Card via GIRO facilities. If these are still insufficient, he has some other tips on how to achieve minimum spending on your credit card.
Hack 2 – Do Not Credit Your Salary With UOB One Account
Another advantage of the UOB One Account is that it does not mandate compulsory salary crediting. Therefore, Heartland Boy advises account holder not to “waste” the salary crediting component on the UOB One Account. Trust him; it can be better utilised elsewhere. To still earn higher interest rates with UOB One Account, simply perform 3 monthly bill payments via GIRO.
Similar to DBS Multiplier, the bonus interest rate only applies to the first $50,000 in your UOB One Account. Therefore, for amounts beyond $50,000, Heartland Boy has to look elsewhere to gain a better interest rate. In summary, if you can spend $500 per month on a UOB credit card and make 3 GIRO payments, the UOB One Account yields an interest rate of 2.43% on the first $50,000 of your deposits.
OCBC 360 Account- 1.8% For First $70,000
The OCBC 360 Account was one of the best bank saving accounts that gave the best interest rates back in 2016. Naturally, Heartland Boy was one of the early adopters. Not surprisingly, Heartland Boy decides to “save” his precious salary crediting allotment to the OCBC 360 Account. Since he is able to credit $2,000 (net of CPF employee contribution) as salary, he enjoys 1.2% interest rate on his deposits. That is a very good interest rate for performing one simple task with the bank.
Heartland Boy easily satisfies 3 online bill payments to earn an additional 0.3%. In addition, he usually fulfils the requirement of spending $500 on his OCBC 365 Credit Card (receive $100 via SingSaver if you are a new to bank customer) as well. This nabs him another 0.3%. Altogether, he can potentially earn 1.8% for up to $70,000 deposited in his OCBC 360 Account.
The BOC SmartSaver would be a similar product offering to OCBC 360 and would benefit those who earns more than $6,000 net and spend more than $1,500 per month of their BOC credit cards.
2.04% Blended Interest Rate On First $170,000
If you have $170,000 parked as emergency cash, here are the blended interest rates that can be achieved from using the 3 popular bank accounts in the combination that Heartland Boy has just described.
Diagram 2: 2.04% Blended Interest Rate On First $170,000
That will give you an annual interest of $3,475 or an effective blended interest rate of 2.04% per annum. This ensures that you come out slightly on top of most fixed deposits or other high yield savings accounts such as Citi MaxiGain Savings Account
So if you are flushed with angbao money this Chinese New Year, you should know the best bank to deposit them to earn the highest interest rate for your money! If you are still confused and would like to read more reviews on the various bank savings account, here are some independent reviews submitted by users on Seedly.
Hi
I was looking at the Q5 of the FAQs for multiplier account and it states that “In the event that there is more than one account holder, there will be no higher interest rates accorded in the account.” Did you receive the higher interest when heartland girl credited her salary into the joint savings account as explained in your hacks?
Q5) Can I open Multiplier Account as a joint account or convert an existing joint account to a joint Multiplier Account?
No. Multiplier Account is available as a personal account only. In the event that there is more than one account holder, there will be no higher interest rates accorded in the account. Only the prevailing interest rate will be accorded.
https://www.dbs.com.sg/iwov-resources/pdf/deposits/multiplier-programme/DBS%20Multiplier%20Programme_FAQ.pdf
Hi Nick,
Thanks for reading my blog.
Heartland Girl and I opened a joint account called POSB Everyday Joint Savings Account. Our names are jointly captured in this POSB account. Each of us have our own personal Multiplier accounts in our respective names. When Heartland Girl’s salary is credited into the everyday joint savings account, her multiplier registers a salary crediting. My multiplier also registers a salary crediting because the joint account reflects my name as well. I get to enjoy an accelerated interest rate as a result.
I do not have a joint Multiplier account, in fact as the FAQ stated it is not allowed.
Hope this clarifies.
Hi HLB,
Apologies for my question.
Assuming the below:
– Heartland girl (HLG) credits her salary in the everyday joint account
– HLG has 50K in her multiplier account
– You have 50K in your own multiplier account
Does the 100K enjoy the higher interest rate?
hi Liz,
yes it does. both accounts register the higher interest rate.
Hi,
Thanks for the above info! Just wondering, have you verified Hack #2 yet?
Hi GY,
I have not verified it yet. Subsequently, I noticed DBS published this as a legitimate hack in the Multiplier FB group. (https://www.facebook.com/photo.php?fbid=180510369401396&set=oa.1733156450113754&type=3&theater&ifg=1)
So i will interpret it as pretty much as good as confirmed.
Hi, for the crediting of dividends, how is it possible that you are getting dividends monthly from stocks?
Hi John,
Getting dividends monthly is possible. Companies listed on SGX have various financial reporting calendars. However, I do not choose stocks based on the date that it distributes its dividends.
Hi HLB,
Thank you for your sharing and I’m going to follow your method.
So the first step is that we have to open Multiplier Account individually, and then open Everyday Savings join Account, right?
Do we need to link these 2 accounts?
I’m a bit confused of these 2 accounts, as they’re different account, why credit salary to joint account will enjoy the multiplier account interest rate? Thank you
Hi Jasmine,
I think you understand the concept perfectly. Here are the answers to your questions.
1) Yes, open individual multiplier accounts online. POSB Everyday joint account must be opened in person at a branch.
2) No need to link these 2 accounts. DBS and POSB are one entity. DBS will be aware of your joint account in POSB.
3) As the salary goes into the joint account which bears the names of both account holders, Multiplier will reflect salary crediting. Only the names on both accounts need to match!
Congrats on boosting the interest rates on your savings!
Hi HLB,
If I open joint account with my husband and my brother, each of us have our own multiplier Account.
Will 3 of us enjoy more benefit? Thank you.
Hi Jasmine,
I have not tried a tripartite joint account yet. Conceptually I think it should work! Try asking at the bank! Let me know if you succeed?
Thanks!
Hi HB,
Any advises on why https://www.sc.com/sg/save/current-accounts/bonussaver/ wouldn’t be better than UOB One Account or OCBC 360 ?
Hi Collard,
I find the threshold of meeting $2K monthly spend on the credit card quite onerous for most folks.
Hi,
Just wondering – would this concept works for any POSB Savings Joint Account (not POSB Everyday Savings Account) please?
Thank you!
hi julie,
yes, it should work with any joint savings account from POSB
Hi, thanks for sharing.
I would like to clarify “The downside is that Heartland Girl must perform monthly transfer regularly to “retrieve” her salary from their joint savings account. If she is not fast enough, she runs the risk that Heartland Boy will lay claim to it first.”
Is that mean every month,
1) HLG immediately transfer the received Salary in the POSB joint account back to her DBS multiplier account to enjoy the registered highest multiplier interest rate? Same goes to the HLB’s CDP dividen credited into the Joint Account, to be transferred out to DBS Multiplier account?
2) On the same day? Will this affect the Total Eligible Transactions calculation to register the multiplier interest rate?
3) Basically all the funds are channeled into POSB joint account merely to sum up the Total Eligible Transactions amount to register the multiplier interest rate for the month?
4) The fund stays in the POSB joint account doesn’t not enjoy the multiplier interest rate?
Hi Win,
See my answers to your queries:
1) Yes for both questions.
2) Need not be same day. It depends on you. It does not affect the total eligible transactions calculated. That had already been captured under the Joint Account
3) Yes
4) It does not. It only earns 0.05% p.a
Hi HLB,
New reader here. Great post. Some questions on the DBS Multiplier:
1. If I already have a POSB Savings account and Debit Card, are spendings from these two channels eligible to be counted under DBS Multiplier? Or do I need a DBS Credit Card?
2. If I currently have around $12,000 savings in my POSB Savings, how much of this amount would you recommend me to transfer to DBS Multiplier?
3. For the Investment component, if I already am investing in ETFs each month via POSB Invest-Saver (but I haven’t opened a DBS Multiplier account yet) – Am I still able to use this POSB Invest-Saver monthly investment to fulfil the “Invest” component?
Confused because they said only new investment purchases after Multiplier account is opened are eligible. Which makes me wonder if they are referring to people who start using POSB Invest-Saver only after they open the DBS Multiplier account.
Hi Val,
Thanks, welcome to my blog.
1) Spending on a POSB Savings Account do not count. Spending on a POSB/DBS Debit Card also do not count. You could get either a DBS/POSB CREDIT card.
2) Probably all of it to earn higher interest at DBS Multiplier
3) Nope, only investment purchases made after Multiplier Account is counted. Existing ones are not recognised.
This FAQ is pretty helpful (https://www.dbs.com.sg/iwov-resources/pdf/deposits/multiplier-programme/DBS%20Multiplier%20Programme_FAQ.pdf)
Hope it helps.
Hi HLB,
If my Boyfriend and I do not have CDP accounts, can we apply a credit card using the POSB joint account, with the spending + the salary crediting, possible to enjoy higher interest rate for both multiplier accounts as well? Thank you!
Hi Ginny,
Yes, you can absolutely still enjoy relatively good interests rates. You can get between 1.55% to 2.08% interest rate by simply crediting your salary and incurring credit card spend.
Thank you! The credit card can be either one of ours? How will the spending be captured by the joint account?
Hi Ginny,
No,credit card is specific to the individual’s multiplier that you wish to boost. For example, get a credit card issued under the name of Ginny to boost the multiplier account of Ginny. For recording of salary for Ginny’s multiplier account, DBS will check internally in its system for ANY bank accounts bearing the name of Ginny that has a salary credited during that month. That’s when the joint account (bearing both Ginny and partner’s names) will help to boost Ginny’s multiplier.
Hi HLB, I’m late to the game on this. can I confirm if the double salary aggregation is still recognised ?
Hi,
You are definitely not late! This tip still works like a treat!
Hi HLB,
If I may piggyback onto this comment, I’m looking to help my mom set up her own Multiplier acct and get her a CC as well to fulfill the spending portion of eligible transactions. Our situation is essentially hack #1 with my salary credit and my mom not having any. I’ve verified with an RM at the suntec branch that this is indeed possible, however a CSO on their live chat has given me contradictory information which is frankly quite frustrating. I was just wondering if you have heard of anyone attempting the hack and not having success with the interest payments.
Thanks
Hi Julian,
So far i have only heard of success stories. I am still benefiting from this arrangement after more than a year.
Hi HLB,
1) if I already have a POSB/DBS joint account with my hubby, and we are only opening our multiplier acct now, will the hacks you recommended above still work? (ie if I also deposit my salary into the joint savings, will both our multiplier acct meet the salary component? Doing it a different sequence from you.)
2) Also only my hubby has a cdp invest acct so can I say that my multiplier account will also fulfil the invest component if hubby deposits his dividend into the shared acct?
Hi Star,
See my replies.
1) if I already have a POSB/DBS joint account with my hubby, and we are only opening our multiplier acct now, will the hacks you recommended above still work?
YES
(ie if I also deposit my salary into the joint savings, will both our multiplier acct meet the salary component? Doing it a different sequence from you.)
YES
2) Also only my hubby has a cdp invest acct so can I say that my multiplier account will also fulfil the invest component if hubby deposits his dividend into the shared acct?
YES, both multiplier will fulfill
Hi, I understand that in order to qualify for the multiplier interest, I need to fulfill two requirements, (a) Credit Salary and (b) Make one transaction on CC.
From the perspective of joint account, will person A credit salary and person B make one transaction on cc unlock the multiplier interest to both?
Hi,
Person A needs to make credit salary into joint account. Both Persons A and B need to make their own cc transactions.
Hi,
Thank you for the very informative and well written article! I realized that OCBC 360 now seems to be offering a good interest for people who have $70,000 balance, and who can satisfy salary, credit card and wealth requirement (2.1% for first $35k and 3.8% for next $35, I’ve excluded the step up interest, assuming that one deposits $70k at the onset). For such people (who can’t clock more than $5k of eligible spend and have trouble satisfying more then 2 requirements of DBS multiplier), would OCBC 360 be the better bank account to save in? Not sure if I missed out any caveats because I noticed finance bloggers favoring the DBS multiplier and UOB one these days 🙂
Hi,
if you can clock more than $2,000 in salary, i think OCBC 360 is a better savings account, especially since you cannot achieve $5K eligible spend for DBS Multiplier.
Hi Heartlandboy, this is very useful read and really appreciate your sharing. I believe all these has obsoleted with the recent changes. Do you mind updating the individual banks criteria and figure illustrations helping us to understand better based on current context? Thank you very much in advance! Stay safe
Hi Winson,
Yes, I may write update my article but in the meantime, you can read this original article and this updated article. The UOB One and DBS Multiplier are updated, but not the OCBC.
https://heartlandboy.com/singapore-banks-interest-rates-best-savings-accounts/