How it works?
Basically, the bank will track your monthly cash flow on the following segments
- Salary credited to the bank
- Credit card spending
- Home loan
- Dividends from CDP
At the end of the month, it will tally to see how much cashflow is involved in the above activities.
From this final cashflow figure, interest rate of various tiers will then be paid out.
Below is an extract from their website on the type of interest rate that you can expect when your cashflow hits certain level.
| Total Monthly Cash Flow# | Higher Interest Rate (p.a.)* |
| S$7,500 to <S$10,000 | 0.98% |
| S$10,000 to <S$12,500 | 1.28% |
| S$12,500 to <S$15,000 | 1.38% |
| S$15,000 to <S$20,000 | 1.48% |
| S$20,000 and above | 1.58% |
My thoughts
The interest rates being offered are actually pretty good for the current low interest environment. Those who are interested can check out the information at http://www.dbs.com.sg/personal/deposit/multiplier/default.page
As with all other banking products, there are certain fine prints associated with it. Do check out the T&C and make sure that you understand them before opening the account.
UPDATE
Follow-up article can be found at
http://moneychatroom.blogspot.sg/2014/03/dbs-multipler-programme-has-increased.html
Dont be too quick to open this account. Check your bank statement and see if your salary has Transaction code PAY or SAL. Most of the time it is GR or IBG. The PAY or SAL code appears in reference description field and not counted. Also all CDP dividend credits has ADV Transaction code and the CDP appears in refrence description field. Again not counted. Worst of all, DBS loan repayments have HL under reference description and Transaction Code for loan repayment shows ADV. Again not counted. So what is left which can be counted? I dont know if DBS informs customers before asking them to open this account
ReplyDeleteYup, I totally agree with you on this. As with all banking products, its better to read all the terms & conditions + any fine prints. There is a section on the product faq that gives more details on the valid transactions code to look out for http://www.dbs.com.sg/Resources/personal/docs/deposit/multiplier/dbs_multiplier_programme_faq.pdf
DeleteWhat I cant accept is that even DBS own housing loan does not qualify as DBS uses ADV as its transaction code. Likewise CDP dividend credits uses ADV as the transaction code. Its a scam as far as I am concern.
Delete