with the OCBC 360 account, whereas with the DBS Multiplier you’d be getting 1.85% p.a. Besides worrying about the loss of a steady income, some DBS Multiplier customers might also find themselves unable to benefit from the higher interest rate (>$2,000 eligible transactions per month). A bear market can significantly reduce your portfolio value and a fixed 4% withdrawal rate on a smaller portfolio value means you will have less money to spend – a 50% reduction in portfolio value results in a direct 50% reduction in living expenses. This site uses Akismet to reduce spam. That said, #1 and #2 tend to work well only when the markets are bullish and your portfolio is looking good. But if you spend $200, that brings the total up to $2,000. and up), The main difference between the two accounts is that. Should We Be Bringing Children Into Our Dying World? on any increment), Buy insurance or invest with OCBC (0.6% p.a. I won’t be surprised that some retirees have sold a big proportion of their stocks – in case the market crashed and decimated their retirement funds. For example, salary crediting makes your total interest 0.05% + 1.2% = 1.25% p.a. This can be substantial because retirees tend to have bigger investment portfolios. All of us need a bank account to give us the liquidity we need to pay for expenses conveniently as well as a safe place to store our emergency funds. You get a veritable buffet of multiplier-type actions to choose from: Salary credit of at least $2,000 (1.2% p.a. The following opinion is mine. It runs pretty automatically once you have set it up. Which should you go for? Do NOT follow this link or you will be banned from the site. S&P 500 and NASDAQ could fall further by as much as 23% and 11% respectively, Auditors Cannot Protect You from Investing in Frauds, 10 monopolies and why they make good investments, BigFatPurse Pte Ltd71 Ayer Rajah Crescent #03-06Singapore 139951Tel: 65-9812 0411Email: admin@drwealth.com, Growth Dragons Newsletter Net Net Hunting Newsletter Day Trading HSI & DAX Signals, Blog postCase StudiesVideosInterviews#AskDrWealth, CEO of Dr Wealth. Let’s say you’re crediting your salary of $2,500 every month. That’s not to say that you should look elsewhere if you’re earning and spending more money. At the peak of the Covid-19, there was a lot of fear in the markets and stocks were sold down heavily. If you’re not totally sure if you’ll be spending that much on credit cards every month, the DBS Multiplier is a better option. Check your inbox or spam folder to confirm your subscription. Not only is it very flexible with no minimum amounts imposed, it also makes it (realistically) possible for regular Joes like you and me to earn 2% p.a. For example, you’ll enjoy 1.2% p.a. But without a source of emergency cash, it’s human to succumb to fear no matter how ironclad your habits and systems are. If we were to use the DBS Multiplier Account, we would have fulfilled the Income, Credit Card Spend, Home Loan Instalments and Investments categories, as well as clocking $5,000 in eligible transactions, thus earning us 1.80% in interest per annum on our first $50,000 and 2.40% on the remaining $10,000. (disclaimer: this "hack" is still valid as we speak but I cannot confirm when DBS may nerf it!) ), Spend on credit cards + salary credit of at least $2,000 (1.85% p.a. Add insurance and you get 1.85% p.a. How will Barcelona line up against Villarreal? With the credit card spend, you would qualify for a 1.2% p.a. The good news is that DBS Multiplier recognises dividends credited by CDP into your bank account as an income and a transaction. This may even out your dividends payouts throughout the year. There are some changes to DBS Multiplier Account that will take place from 1st February 2020. Investing isn’t easy – we are constantly required to make decisions during uncertain times, using incomplete information. Who is it suitable for? if you spend about $3,000 in that month and no dividends were credited. interest or more on our savings. Criteria for additional interest are applied on a monthly basis while dividends are not distributed each month. Look at the majority who don’t complete their new year resolutions. Assuming 3% dividend yield on a $1m portfolio, it would qualify for $30,000 worth of transactions alone. Home Loan --> if both of you are on the DBS Home Loan, then this should already be recognised. To make things worse, we are constantly battling greed and fear hijacking our thoughts.