DBS raises interest rate on Multiplier account after OCBC's move

Maximum interest rate is now 4.1%, up from 3.5%, and applies to first 100,000 in savings

- Prisca Ang

DBS Bank has again increased the interest rates on its flagship Multiplier savings account, a day after OCBC Bank made a similar move as competition sharpens for customer deposits.

Singapore's largest bank on Tuesday lifted the maximum interest rate on the Multiplier account to 4.1 per cent a year, up from 3.5 per cent previously.

This applies to the first $100,000 in a customer's account when he transacts in three categories with a total volume of $30,000 or more in eligible monthly transactions.

The Multiplier account offers customers tiered interest rates on their account balances. Rates are higher if they spend larger amounts with DBS, and in more eligible categories that include spending with DBS/POSB credit cards, mortgage payments and investments.

To qualify for interest, customers must first credit an income stream to their Multiplier account and transact in at least one eligible category. An income stream is defined as salary, dividends or use of the Singapore Financial Data change service to get a consolidated view of finances.

DBS has also simplified the balance cap structure on the account.