笨mummy knew that she is going back to the workforce and being a salarywoman, she did some research on what saving accounts offered by the banks would be best for her salary crediting. Currently 笨mummy has a UOB one account which she earns an interest of 2.43% on her $50,000 by meeting the minimum $500 credit card spending and 3 GIRO debits per month. To maintain the UOB one card, all household expenses are charged to UOB One card - home internet, insurance premium, town council conversancy charge, the purchase of groceries, milk powders, diapers, etc and she also set up GIRO debiting for expenses that cannot be pay by credit card - child 1's school fee, her monthly donation to community chest, and payment for NTUC union. She is happy with the current status of spending via the UOB One card and does not wish to change as this is the highest interest rate she can attain for her $50,000 saving.
Given she now has a salary crediting, she was actually looking at OCBC 360 account ('360'), DBS Multiplier account ('MA'), BOC SmartSaver ('SS'), Standard Chartered Bonus Saver ('BS'). Based on her preliminary review below, MA seems to offer the best rate based on her need.
Account
|
Salary
crediting (>6K/mth)
|
Other
criteria
|
Comment
|
360
|
1.20%
(no need to hit other criteria)
|
·
OCBC Credit spending > $500 (0.3%)
·
Investment – purchase of eligible investment
products (0.6% or 1.2%)
·
3 bill payments > $150
in total (0.3%)
·
Account balance >$200,000 (1%)
|
笨mummy does not want to spend more money just to hit a
criteria to earn more interest so credit card spending is not attainable and
purchase of investment products are out.
Also on the wealth bonus offer, it is quite ridiculous
as who would put 200K just to get an addition 1% on the first 70K, and the
remaining 130K just earning 0.05% interest.
However, 3 bill payments is still something that can be
attainable.
Maximum possible interest rate for 70K put in is 1.5%
|
MA
|
1.90%
(plus one other criteria)
2.00%
(plus two other criteria)
|
·
DBS/POSB Credit spending
·
Investment (include dividend credited from CDP)
·
DBS/POSB Home loan
·
Manulife Insurances purchased through DBS/POSB
|
Home loan and insurance are out.
Credit card spending seems attainable as only need to
clock any amount – buying a pack of Fisherman from Watson once a month should
do the trick. Plus Investment allows dividend credited from CDP which is
superb as 笨mummy has dividends inflow almost every month except for
Jan and Jul.
Maximum possible interest rate for 50K put in is 2.0 %
|
SS
|
1.2%
(no need to hit other criteria)
|
·
3 bill payments >S$30
each (0.35%)
·
BOC Credit card spending > $500 or $1500(0.80% /1.60%)
·
Extra saving for meeting more than one criteria
|
3 bill payments is still something that can be
attainable.
Maximum possible interest rate for 50K put in is 1.55 %
|
BS
|
1%
(no need to hit other criteria)
|
·
SCB Credit card spending > $500 or $2000(0.88% /1.88%)
·
Eligible Insurance Policy/ Unit Trust (0.75%)
·
3 bill payments > $50
each (0.25%)
|
Spending and purchase of insurance policy/unit trust are
out.
3 bill payments is still something that can be
attainable.
Maximum possible interest rate for 100K put in is 1.25 %
|
笨mummy did more reading up on DBS MA by browsing the FAQ and T&C on its website and forums. To her pleasant surprise, she discovered that MA allows joint account is counted for hitting the salary credit and crediting of dividend by CDP (investment). This can be considered a huge advantage or "competitive edge' that the MA has over other banks products. For those who do not see why she is so excited, please continue to read on. For those who got it, you can close the browse now.
笨mummy takes advantage of this above to open a joint account with her hubby and use this joint account to be her salary crediting account as well as the crediting account for CDP and both she and her hubby opened one individual DBS MA each and switched the monthly utilities bill from GIRO to hubby's POSB everyday credit card.
In this way, her hubby can continue to earn the 1.2% under OCBC 360 for his own salary crediting and yet he can qualify for DBS Multiplier by levering on 笨mummy's salary. Now she has 50K plus 50K (hubby money) earning 1.90% or 2.0% from just one salary crediting account.
So now 笨mummy's family has:
- $50K earning 2.43% in UOB one account
- $100K earning 1.90% / 2.0% in DBS Multiplier
- $70K earning 1.60% in OCBC 360 (as 笨mummy's hubby can only hit the bill payments critera)
by hitting:
- two salary crediting
- monthly spending of slightly more than $500
- 3 GIRO
- 3 billing payments
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