Optimizing Bonus Interest With Multiple High Yield Savings Accounts

This is some extra thoughts and ideas I would like to share which is related to my previous two posts Singapore high yield savings accounts Part 1 and Part 2

In this post, I will share how you could possibly combine two (or more) accounts from UOB, DBS and OCBC to achieve more synergy and gain more interest on your deposits.

Diminishing Yields

The TL;DR from the previous two posts is that all three accounts have shortcomings and advantages. However what is common among them is that yields max out at a certain deposit amount and any additional money poured into the account reduces the overall yield.

For DBS, the maximum yield is at $100,000

For UOB One, the maximum yield is at $75,000 deposited at 1.846% p.a.

For OCBC, the maximum yield is at $70,000

Combining Multiple Accounts

If you plan to save more than $70,000, $75,000 or $100,000, it is possible to have multiple accounts and get bonus interest from them. Here are some ideas to consider if you want to gain larger bonus from larger sums.

Combo 1: OCBC 360 + UOB One

Total deposit amount = $145,000 ($70,000 + $75,000)

Deposit 70,000 into your OCBC 360 and credit your salary and try to get a second category maybe spend or step up (2.15% p.a.) or both (2.45% p.a.)

Deposit 75,000 into your UOB and spend $500 on UOB credit cards and make 3 giros.

You will need to prioritize spending on your UOB credit card and if you have another $500 to spend, spend it on a OCBC card.

You will get 2.15% p.a. (Salary + credit card spend OR step up) from OCBC 360 and 1.846% from UOB. This is approximately $258.29 interest per month which is about 2.06% p.a. on your $145,000.

Combo 2: DBS Multiplier + UOB One

Total deposit amount = $125,000 ($50,000 + $75,000)

Deposit 50,000 into your DBS Multiplier and if you have at least 5k worth of eligible transactions and have at least 2 other categories (credit card or invest or housing loan or insurance)

Deposit 75,000 into your UOB and max out your interest.

You will get ~$209.12 interest per month of 2.00% p.a. on your $125,000

Total deposit amount = $175,000 ($100,000 + $75,000)

Same as the above but instead of $50,000, you deposit $100,000 into your DBS Multiplier and aim to get 3 other categories to qualify for the next $50,000 bonus.

Combined with a maxed out UOB One $75,000 account and you will get ~$311.20 interest per month which is about ~2.13% p.a. on your $175,000

Combo 3: DBS Multiplier + OCBC 360 + UOB One

This combo requires two people – great for married couples. And if you are newly married (or about to) why not take up a home loan from DBS for your HDB too?

The criteria is you will need a joint DBS or POSB account that is not the DBS Multiplier Account. Then you and your spouse need to create separate individual DBS multiplier account. You also need a home loan preferrably because home loans are usually paid by both so you will both qualify for 1 income + 1 other category (housing loan) automatically.

You and your spouse each credit $50,000 into your respective DBS Multiplier accounts.

The person with the higher income to credit his or her salary to the DBS/POSB joint account. Once it is credited to the joint account, both you and your spouse’s DBS Multiplier Account has achieved the income requirement. This same person will open a UOB One account with $75,000 and spend $500 on the UOB credit card and make 3 giro transactions. Also, please transact something on the POSB/DBS credit card to get the 2 category.

The other person will credit his or her salary into a OCBC 360 and deposit $70,000. Prioritize credit card spending on OCBC credit cards and increase deposit by $500 every month (which increases interest rate to 2.45%p.a.). Then spend at least something on a DBS or POSB card.

So in this case, both you and your spouse have the income category + credit card + home loan instalments (Income + 2 category). If you spouse has more than $5,000 income, you will mostly qualify for 2.20% p.a. for your $50,000 in DBS Multiplier.

If you have more money to deposit, you can each save up to $100,000 in DBS multiplier and start a invest saver plan to qualify for 3 categories to earn an effective 2.3% p.a for $100,000

Each of you will also qualify for either 2.45% from OCBC (salary + credit card spend + step up bonus) or 1.864% from UOB One.

Combo 4: Maximize DBS for High Income Couples

If you and your spouse both contribute to your joint DBS or POSB accounts, to qualify for the >15k eligible transaction amount tier, you can hope to get 2.45% p.a. on $100,000 for both your accounts for a total of $200,000.

Better still, if both your combined income is 30k or more, you can qualify for 3.70% p.a. on $100,000 for both your accounts for a total of $200,000

There are much more combinations for the couple accounts because you can combine different accounts to maximize interest because of DBS Multiplier.

Conclusion

There are diminishing returns from increasing deposit amounts in high yield savings account because they only limit the bonus interest up to a certain amount.

The way to get pass this is by combining multiple accounts to maximize interest gained over larger amounts beyond $100k.

DBS Multiplier recognizes salary credited to any DBS or POSB account. Hence if you credit your salary to a joint account, both account holders will qualify for bonus income category. The other spouse is free to credit his or her salary to another bank account to gain bonus interest.

Also, both of you can combine your income into a DBS joint account to boost the eligible bonus transaction amount to a higher tier to gain higher interest for both.

Author: Fatty's Finance

Finance is like health. It becomes an issue if it is not well maintained. I want to help you get back in shape!

Leave a Reply