Are You an NSF, Tertiary Student or Retiree? Here’s How the Latest DBS Multiplier Account Changes Benefit You

You’re not like “most people”. You don’t have a typical full-time job, have no credit card and your income stream doesn’t necessarily come from an employer… Heck, you’re still in school and that final exam is looming over your head as you read this.

How could you ever hit those higher bonus interest rates in your savings account, let alone benefit from various credit card rebates or cashback opportunities, or even make X number of transactions amounting to $Y per month.

Those perks don’t usually include people like yourself… until recently.

Since 1 Aug 2020, with the latest changes to the DBS Multiplier Account, you are now part of the party. The bank has identified these issues and introduced changes that promote inclusivity to more groups of people, such as full-time National Servicemen (NSFs), tertiary students and retirees. 

Let’s first take a closer look at the key changes before diving deeper into how each group of people benefit.

 

What were the latest changes to the DBS Multiplier Account (wef 1 Aug 2020)?

As you know, the DBS Multiplier Account has undergone some revisions quite a few times this year, due to the ongoing Covid-19 situation and the US Fed rate cuts.

Here’s a summary of the latest changes:

 

1. Dividend credit

Before 1 Aug 2020	From 1 Aug 2020
Eligible dividends included are from: (1)  Central Depository Pte Ltd (CDP) (2)  DBS Vickers (SGX only) (3)  DBS Online Equity Trading (OET) (SGX only)	Eligible dividends included are from: (1)  Central Depository Pte Ltd (CDP) (2)  DBS Vickers (All markets) [EXPANDED] (3)  DBS Online Equity Trading (OET) (All markets) [EXPANDED] (4)  DBS Unit Trusts [NEW] (5)  DBS Online Funds Investing [NEW] (6)  DBS Invest-Saver [NEW]
Dividends must be credited into: (1) Personal or joint DBS/POSB savings/current accounts (2) DBS Wealth Management Account	Dividends must be credited into: (1)  Personal or joint DBS/POSB savings/current accounts (2)  DBS Wealth Management Account (3)  Supplementary Retirement Scheme (SRS) account [NEW] (4)  CPF Investment Account (CPFIA) [NEW]

Source: DBS

 

2. Interest rates for Income + transactions in 1, 2 and 3 or more categories

	Income + transactions in 1 category (first S$25,000 of account balance)		Income + transactions in 2 categories (first S$50,000 of account balance)		Income + transactions in 3 or more categories (next S$50,000 of account balance)
Total eligible transactions per month	Before 1 August 2020	From 1 August 2020	Before 1 August 2020	From 1 August 2020	Before 1 August 2020	From 1 August 2020
<S$2,000	0.05% (p.a.)	0.05% (p.a.)	0.05% (p.a.)	0.05% (p.a.)	0.05% (p.a.)	0.05% (p.a.)
≥S$2,000 to <S$2,500	1.40% (p.a.)	0.70% (p.a.)	1.80% (p.a.)	1.30% (p.a.)	2.00% (p.a.)	2.00% (p.a.)
≥S$2,500 to <S$5,000	1.60% (p.a.)	0.90% (p.a.)	2.00% (p.a.)	1.50% (p.a.)	2.00% (p.a.)	2.00% (p.a.)
≥S$5,000 to <S$15,000	1.80% (p.a.)	1.10% (p.a.)	2.20% (p.a.)	1.80% (p.a.)	2.40% (p.a.)	2.40% (p.a.)
≥S$15,000 to <S$30,000	1.90% (p.a.)	1.20% (p.a.)	2.30% (p.a.)	1.90% (p.a.)	2.50% (p.a.)	2.50% (p.a.)
≥S$30,000	2.00% (p.a.)	1.30% (p.a.)	3.50% (p.a.)	2.80% (p.a.)	3.80% (p.a.)	3.80% (p.a.)

Source: DBS

 

This year, DBS also rolled out other changes for its DBS Multiplier Account, designed to include more groups of people, such as NSFs, tertiary students and retirees. These changes are:

• More types of dividends are now recognised under the Income category, and the minimum amount has been lowered from $2,000 to $500. i.e. there’s now more inclusivity for retirees whose income source is mainly from investments
• Wider scope of dividend income recognised (instead of just CDP dividends from SGX stocks, now SRS, CPF, foreign equity, unit trust and so on are now recognised)
• DBS PayLah! transactions taken into consideration for the computation of bonus interest
• More inclusivity for those 29 years old and below with no eligible income. They can start by transacting with DBS PayLah! for retail spend with no minimum spend required, and earn higher interest when they credit their income from internships/part-time jobs
• More inclusivity for NSFs, i.e. minimum transactions/month now lowered to $500 instead of $2,000 so they can qualify with both their NS allowance and DBS PayLah! retail spend

How tertiary students can now benefit from the DBS Multiplier Account

Jayce is a polytechnic student who depends partly on allowance from her parents and money from her part-time job to fund her active lifestyle that revolves around meals with friends, a variety of sports and online shopping. 

During her term break, she plans to take up an internship for work experience and to build up her resume. She’s currently single, lives with her parents and younger brother, and has no financial commitments at the moment.

Gen Zs like Jayce don’t yet have the spending power but they value personalised, quality goods. She’s willing to pay a premium for a product from a reliable brand that will set her apart from the rest, and she’s done her research too.

Jayce makes digital payments mostly through DBS PayLah!. Without counting her transport fees, the thrifty tertiary student usually spends below $300 a month.

Here’s how Jayce benefits from the more inclusive DBS Multiplier Account changes:

Jayce (29 years old and below, tertiary student)	Before 1 August 2020	After 1 August 2020
Total eligible transactions/month	At least $2,000 a month	No minimum eligible transactions required
Income required	Yes	No. Just transact with DBS PayLah! for retail spend with no minimum spend required.
Eligible interest	0.05% p.a. (does not meet criteria for higher interest)	Higher interest rate applies to the first $10,000 balance in her DBS Multiplier Account 0.30% p.a. — with DBS PayLah! retail spend only 0.50% p.a. — Credit internship allowance and transact with DBS PayLah! for retail spend, adding up to $500 or more a month

 

How NSFs can now benefit from the DBS Multiplier Account

Jackie just became a full-time National Serviceman and spends most of the time in camp. When he books out, he usually catches up on his online games, has meals with his family and spends time with his girlfriend. 

Since the NS allowance revision in March 2020, he receives $630 a month, not including other allowances. While in camp, he’s started reading up on investments and plans to begin investing soon. The dividends earned will also count towards his income category — and of course they will be used to fund his university education once he completes his National Service.

Here’s how Jackie benefits from the more inclusive DBS Multiplier Account changes:

Jackie (29 years old and below, NSF)	Before 1 August 2020	After 1 August 2020
Total eligible transactions/month	At least $2,000 a month	No minimum eligible transactions required
Income required	Yes	No. Just transact with DBS PayLah! for retail spend with no minimum spend required.
Eligible interest	0.05% p.a. (does not meet criteria for higher interest)	Higher interest rate applies to the first $10,000 balance in his Multiplier account 0.30% p.a. — With DBS PayLah! retail spend only 0.50% p.a. — Credit NS allowance and transact with DBS PayLah! for retail spend, adding up to $500 or more a month

 

How retirees can now benefit from the DBS Multiplier Account

Julian, 63, has been retired for about a year. Before Covid-19 hit, he had been regularly making trips across the Causeway to Johor Bahru with his wife Emma, who retires this year on her 62nd birthday, which falls in December.

The elderly couple has 2 grown kids who give them some money every month. They also have their own cash savings and other sources of income from their investment dividends and CPF LIFE payout. 

Since age 50, the couple has been working on reducing their spending in order to have enough for a comfortable retirement and yearly overseas trips. They now get by on about $1,000 a month. Their HDB flat is fully-paid for.

Here’s how Julian and Emma benefit from the more inclusive DBS Multiplier Account changes:

Julian (retiree)	Before 1 August 2020	After 1 August 2020
Total eligible transactions/month	At least $2,000 a month	At least $500 a month
Income required	Yes. Salary and/or CDP dividends only	Yes. Salary and/or investment dividends in the form of cash/SRS/CPF
Eligible interest	0.05% p.a. — Total eligible transactions falls below $2,000 0.70% to 3.80% p.a. — Credit investment dividends and transact in Credit Card / Home Loan / Insurance / Investment, adding up to $2,000 or more a month. Higher interest rates apply up to the first $100,000 balance in their DBS Multiplier Account.	0.05% p.a. — When total eligible transactions falls below $500 0.50% p.a. — Credit investment dividends and transact with DBS PayLah! for retail spend, adding up to $500 or more a month. Higher interest rates apply to the first $10,000 balance in their DBS Multiplier Account. 0.70% to 3.80% p.a. — Credit investment dividends and transact in Credit Card / Home Loan / Insurance / Investment, adding up to $2,000 or more a month. Higher interest rates apply up to the first $100,000 balance in their DBS Multiplier Account.

 

DBS Multiplier Account is now more inclusive

It’s encouraging to know that other groups of people can benefit from the DBS Multiplier Account’s higher interest rates. 

During this difficult time, it really helps to earn a decent interest on one’s savings/earnings. When the economy eventually recovers, and interest rates hopefully return to that of the pre-Covid-19 era, more DBS Multiplier Account customers can grow their savings together.

Find out more and sign up for a DBS Multiplier Account here.

 

 

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