Nowadays, there are so many different savings accounts that ALL market themselves as having the ‘highest interest guaranteed!’.
Today, I’d be sharing with you my analysis of the DBS multiplier account and Standard Chartered Jumpstart account.
You’d also see a few scenarios for millennials and hopefully one of them fits you.
Quick overview of the various bank accounts.
DBS multiplier account
Eligibility and fees of the DBS multiplier account:
Let’s start off with the DBS multiplier account. To be eligible, you’ll need to be at least 18 years of age.
No initial deposit is required
No monthly account fees charged
No minimum average daily balance required if this is your first DBS account.
If your average daily balance falls below S$3,000 (based on total SGD equivalent of SGD & foreign currency balances), a Fall-below fee of S$5 will be charged. This fee is waived up until 29 years old.
- If account is closed within 6 months, Early closure fees are S$30.
How does the DBS multiplier account work?
To earn a viable percentage of interest, you’ll need to firstly fulfill the income category by crediting your salary and/or dividends crediting.
And, transact in at least one of the following categories below, credit card spent, home loan installments, insurance or investments.
This is part of the new revisions that have been enfoced since 1st February 2020.
Source: DBS Multiplier Webpage
To watch your money multiply significantly, your total eligible transactions would need to add up to S$2,000 or more.
Below is a visualization of the different interest rates you’d earn depending on your total eligible transactions, total account balance in your Multiplier account and the number of categories you make transactions in.
There’s no minimum transaction amount required for each individual category. You just need to meet the total eligible transaction amounts.
Standard Chartered JumpStart Account
Eligibility and fees of the Standard Chartered JumpStart account.
- You must be between 18 and 26 years old at the time you apply for account.
- To apply and open an account online, you’ll need a SingPass with a MyInfo Profile, a Singapore mobile number and email address
- No minimum deposit balance is required
- No minimum spends
- No requirement for salary-crediting
- No fall-below fee
How does the Standard Chartered Jumpstart account work?
Up to the first S$20,000 credited into your JumpStart account, you’ll earn a flat interest rate of 2.00% p.a. For incremental balances above your first $20,000, you’ll earn 0.10% p.a.
Features and Benefits:
- You have the flexibility to access your funds anytime AND earn competitive interest rates.
- It comes with a Cashback debit card with no monthly or annual fees.
- Enjoy 1% cashback1 on eligible MasterCard spend on the Cashback debit card.
- Monthly cashback is capped at S$60 per account.
Scenarios for Millennials and which account!
Scenario 1: Full time barista waiting to enroll into University or working part time in university
If you are a 21 year old Full-time Barista waiting to enrol into University with a monthly income of $1800. Let’s assume you have $8,000 in savings.
Your take home pay would be $1,440 after CPF. Next, you credit salary and spend $300 on credit card (Salary Credit + Transactions in 1 category).
That would make your total eligible transactions to be $1,740.
Thus, your interest p.a earned would be 0.05% if you were to open a DBS multiplier account.
Which account to open?
The Standard Chartered Jumpstart account. ……………
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