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.

I invested in a diversified portfolio of exchange-traded funds (ETF) and stocks listed in the US, Hong Kong and London.

My preferred broker to trade and custodize my investments is Interactive Brokers. Interactive Brokers allow you to trade in the US, UK, Europe, Singapore, Hong Kong and many other markets. Options as well. There are no minimum monthly charges, very low forex fees for currency exchange, very low commissions for various markets.

To find out more visit Interactive Brokers today.

Join the Investment Moats Telegram channel here. I will share the materials, research, investment data, deals that I come across that enable me to run Investment Moats.

Do Like Me on Facebook. I share some tidbits that are not on the blog post there often. You can also choose to subscribe to my content via the email below.

I break down my resources according to these topics:

  1. Building Your Wealth Foundation – If you know and apply these simple financial concepts, your long term wealth should be pretty well managed. Find out what they are
  2. Active Investing – For active stock investors. My deeper thoughts from my stock investing experience
  3. Learning about REITs – My Free “Course” on REIT Investing for Beginners and Seasoned Investors
  4. Dividend Stock Tracker – Track all the common 4-10% yielding dividend stocks in SG
  5. Free Stock Portfolio Tracking Google Sheets that many love
  6. Retirement Planning, Financial Independence and Spending down money – My deep dive into how much you need to achieve these, and the different ways you can be financially free
  7. Providend – Where I used to work doing research. Fee-Only Advisory. No Commissions. Financial Independence Advisers and Retirement Specialists. No charge for the first meeting to understand how it works
  8. Havend – Where I currently work. We wish to deliver commission-based insurance advice in a better way.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This site uses Akismet to reduce spam. Learn how your comment data is processed.