As you might have seen on many TV commercials and social media, you would have somehow recall a giant rabbit for DBS’s Multiplier account signifying their enormous benefits such as interest rates up to 3.8% (up to SGD 100,000 of your bank balance); however what they didn’t advertise are the conditions which you will have to meet in order to achieve the maximum interest rates as advertised or catch the big rabbit if you like. More often than not, these conditions are extremely specific and only benefit a targeted group of individuals. In other words, bigger numbers does not always reflect actual yields.
It is time to find all the LOOPHOLES in those savings accounts and do a reality check to see which of them are actually the best fit for yourself. For the sake of comparison, we need to first identify what is the maximum interests in SGD which you can earn under some conditions.
Those specific conditions can be tested using the calculator functions in both DBS Multiplier and OCBC 360 account websites
The conditions which I will set for the basis of comparison will be for young adults who
- Does not own a property
- Working with a steady salary of more than SGD 2000 net income per month
- Saves SGD 500 per month
- Spends SGD 500 dollars per month
- Has a total bank balance of SGD 70,000 (OCBC banks only pays you interest up to SGD 70,000 balance, excess will fall only into boost bonus)
| Actual Interests earned | DBS Multiplier | OCBC 360 Account |
| Average monthly interest (SGD) | SGD 78.17 | SGD 152.01 |
| Total Annual Interest (SGD) | SGD 938.05 | SGD 1,824.12 |
| Effective Interest Rates Per annum | 1.34% | 2.61% |
Taking away all the bells and whistles, we now have a clearer view of which Savings account can actually generate more interest for you with 0% risk (SDIC coverage of up to SGD 75,000).
Balance above SGD 70,000?
There are always options such as OCBC Bonus plus to give you an additional 1.45% per annum if these three conditions are met.
- Have a current balance in the OCBC Plus Account (0.05% per annum)
- Average deposit of SGD 500 per month (0.4% per annum)
- No withdrawals at all (1% per annum)
Conversely if you have to withdraw money out of that account, the interest rates for that month will be reduced to 0.05% per annum. Therefore the downside of using this account as a savings account will largely be the micro “Fixed Deposit” kind of feeling. Whereas the OCBC 360 account does allow any amount of withdrawals.
Bonus LOOPHOLE
(lower returns but no withdrawal restrictions) – OCBC Bonus+
For those of you who are interested to maximise the interest in your accounts but are limited by the 70k limit set by OCBC and are not willing to place your funds into Fixed deposit or Fixed Deposit-like accounts.
I will do a simple table for you guys to understand how you can use the boost bonus feature to earn additional interests overtime with more than SGD 70,000 in your account.
For example, let’s just play with a hypothetical account balance of SGD 140,000 while keeping all other conditions constant.
| Conditions | Fulfilments |
| Average monthly balance in OCBC 360 Account | SGD 140,000 OR SGD 70,000 & SGD 140,000 |
| Average income per month | SGD 2,000 |
| Average sending on Credit Cards | SGD 500 |
| Average savings per month | SGD 500 |
To activate the boost bonus, your current average bank balance from the first to the last day of the month will need to be greater than last month.
Therefore,
Monthly rotation of balance from OCBC 360 account to regular savings account
| Monthly interest earned | 1st Month | 2nd Month | 3rd Month | 4th Month |
| Average bank balance | $70k | $140k | $70k | $140k |
| Interest earned (360account) | $124.84 | $214.01 | $124.84 | $214.01 |
| Average interest earned per month | SGD 169.43 |
Retention of bank balance with monthly increase of SGD 500
| Monthly interest earned | 1st Month | 2nd Month | 3rd Month | 4th Month |
| Average bank balance | $141,000 | $141,500 | $141,000 | $141,500 |
| Interest earned (360account) | $155.00 | $155.00 | $155.00 | $155.00 |
| Average interest earned per month | SGD 155.03 |
Difference per month = SGD 169.43 – SGD 155.03 = $14.40
Different per year = $14.40 X 12 months = $172.80
To sum up, do not take Advertisements wholesale! Be a prudent investor of your monies in bank accounts. Personally, I do feel that OCBC’s terms and condition are easier to reach as compared to other banks like DBS and UOB while maintaining competitive rates. Furthermore, it does not reward you for spending more in the month which is in itself a plus point for people who are looking to save more money.
Thank you all so much for reading the first post on LoopHoles.sg, We look forward to bringing you the latest and greatest loopholes in the greater scheme of things encompassing savings, investments and lifestyle so that we can all enjoy these tips together in Singapore.
