SINGAPORE (THE BUSINESS TIMES) – Singapore’s largest lender DBS will again this year cut rates on its flagship deposit account from Aug 1 amid a low interest rate environment and macro uncertainties.
This comes two months after a set of rate revisions for the DBS Multiplier account that took effect on May 1.
The DBS Multiplier account offers customers tiered interest rates that is stepped up if customers have more transactions with the bank, and transact in larger amounts. The determined rate is then applied on the account balance.
The latest changes affect interest rates that are applied to account balances of up to the first $50,000.
For example, when customers credit an income stream – defined as a salary, dividends, or both – into the Multiplier account and make just one more DBS transaction in an eligible category to total between $2,000 and $2,500 per month in transaction value, the interest rate for the first $25,000 will be halved to 0.7 per cent per annum from Aug 1, from 1.4 per cent per annum currently. It was previously 1.55 per cent per annum before May 1.
For customers who credit their income into the Multiplier account and make just one more DBS transaction in an eligible category that add up to at least $30,000, the rate on the first $25,000 will be cut to 1.3 per cent per annum, from 2 per cent per annum.
Interest payouts for amounts where customers credit income and make two more DBS transactions in two separate eligible categories, will similarly be cut. Rates will be reduced across the board from Aug 1, for the first $50,000 in the account balance.
For example, if a customer credits an income and makes two other transactions that add up to between $5,000 and $15,000, the interest rate applied on the first $50,000 will be reduced to 1.8 per cent per annum, from 2.2 per cent per annum.
DBS also expanded the types of qualifying dividends that count as an income stream. For example, they will accept dividends of equities listed in all markets, and the bank’s unit trusts. The bank will also accept dividends credited into a Supplementary Retirement Scheme (SRS) account, and in a CPF Investment Account.
Earlier in June, DBS’s banking peers OCBC and Standard Chartered also announced plans to slash rates on their respective savings accounts from July 1.
Interest payout for StanChart’s Jumpstart savings account has since been halved to 1 per cent for the first $20,000 – down from 2 per cent – and will remain at 0.10 per cent for balances above $20,000.
As for its Bonu$aver account, payout of all interest (including prevailing interest and bonus interest) on the first $80,000 eligible deposit balance is now capped at 3 per cent per annum from July 1, down from 3.88 per cent on the first $100,000.
About seven more StanChart savings and current accounts have also had their prevailing interest rates revised to 0.05 per cent across the board.
For OCBC’s 360 savings account, the salary credit bonus interest has been halved to 0.6 per cent, from 1.2 per cent for balances up to $35,000. Balances between $35,000 and $70,000 will now earn 1.2 per cent interest, down from 2.4 per cent.
The bank has also stopped offering the credit card spend bonus interest, which was previously 0.2 per cent for the first $35,000 of balances and 0.4 per cent for the next $35,000.
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