DBS Multiplier Bonus Interest on First $25,000 Reduces Slightly By 0.08% to 0.25% | Investment Moats Skip to Content

DBS Multiplier Bonus Interest on First $25,000 Reduces Slightly By 0.08% to 0.25%

A quarter after DBS announced that they will change how they handle the bonus interest to their popular DBS Multiplier accounts, they announce a reduction in Bonus interest rates for the first S$25,000 deposits.

This morning, DBS published an important revision notice for the interest rate for Income + 1 transactions in 1 category with effect from 1st May 2020:

DBS Multiplier bonus interest changes

The changes are smaller this time around, and it affects your bonus interest earned on the first S$25,000. If you managed to hit the higher tiers, you should be less affected.

In any case the reduction is about 0.08% to 0.15%. In absolute amount its $20 to $37.50 a year.

Something does not add up if you are going to cry over this.

The risk free curve have shifted downwards at least by 1%. Due to Covid-19, MAS have allowed home loans and insurance premiums to be deferred. This affects the supply of loans and the interest they charge on the loans.

Naturally, they have to control their costs, which is the interest on deposits.

Nevertheless, I think the risk and reward proposition shifts to greater risk taking then being in deposits. So you should be less affected by this.

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