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20 October 2014

OCBC360, DBS Multiplier & Cimb StarSaver Trio



If you are one of those unlucky ones(like me) who are unable to meet the 1% interest salary crediting requirement due to OCBC's strict "GIRO-SAL" code criteria, you can open a DBS multiplier and get 1.08%-2,08% per annum on a monthly basis for $50k. They have recently revised their first tier interest to 1.08% from 0.98% as shown below. Which means if your "monthly banking" with them is at least $7.5k, you will be ensured $45 a month(at least something). The $7.5k total can include salary, housing loan, dividend payments from cdp and dbs credit card spending. It can be scaled up to a maximium of 2.08% which works out to be around $87 a month.


OCBC360 account can be used together with your DBS multiplier if your salary crediting code for OCBC360 does not match. Criterias from both sides can be fulfilled without overlapping each other. For OCBC360, you can milk the 2.05% interest(for max 50k) through min $400 credit card spending and three bill payments. Additionally, you can get another 6% flashpay atu/online purchase rebate simultaenously if you manage to hit the $500 credit spending with your Frank credit card for the month. Quite an easy amount to hit if you focus your monthly expenses solely on this card alone.

There are a couple of combinations you can adopt to fulfill these two requirements to get the 2.05% interest. First combination I can think of is to have three OCBC credit cards, spend $400 in total with them and pay the three credit card bills within the same month, which will fulfill the two criterias concurrently.

Second combination I can think of, is to concentrate all credit card spending on your Frank credit card alone and veer more towards using the flashpay ATU and online credit card payment. Hit $500 spending and pay three other bills using OCBC ibanking all within the same month. Do note that billing of $1 to any credit card will count as one bill payment as they did no specify any min amount. Which means you can pay $1 to three different credit cards you own and still meet the requirement for the 1% interest.

If you cannot meet the min tier for DBS multipler, ignore the multiplier and put your remaining savings into CIMB starsaver savings account for 0.8% instead. If you manage to meet the min tier for DBS multiplier and the 2.05% interest from OCBC360 thats about $130.42 interest a month from both. If you are a high earner and manage to meet the highest tier for DBS multiplier and 2.05% from OCBC360, you will get around $172 interest a month from both. All the interest that you receive per month, you can put it back into your CIMB starsaver savings for 0.8% compounding. Thats how I would maximize interest for my liquid cash.

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