DBS, StanChart to further cut rates on savings accounts

DBS Bank and Standard Chartered will further cut already-low interest rates on their savings accounts from next year.

Singapore’s largest lender DBS will cut rates on its flagship deposit account DBS Multiplier, which offers customers tiered interest rates on account balances. Interest rates are higher if customers transact in larger amounts with DBS, or if they spend in eligible categories such as credit card spending and investments.

From Jan 1, rates will be slashed by up to 0.7 percentage point when customers credit an income stream – defined as salary, dividends, or both – to their Multiplier account and transact in one eligible category.

For example, if a customer credits an income stream and transacts in one category with a total value of at least $30,000, the interest earned on the first $25,000 in the account will be 0.6 per cent per annum, down from the current 1.3 per cent.

Rates will be cut by up to 1 percentage point for spending in two categories, and up to 0.8 percentage point for spending in three or more categories.

Customers can go to https://bit.ly/3fXCKiN for details.

This will be the third cut to the bank’s Multiplier interest rates since May, as interest rates tumbled globally.

Likewise, StanChart will cut its interest rate for JumpStart – a savings account for young people between 18 and 26.

From Jan 1, the interest rate on the first $20,000 will be 0.4 per cent per annum, down from 1 per cent. The rate on balances above $20,000 is still 0.1 per cent.

The bank halved rates in July.

Other banks have also cut their rates in recent months.

OCBC Bank made changes to the interest rates on its 360 savings account in October, in its third cut since May. The Straits Times understands the bank does not currently plan to further cut these rates.

United Overseas Bank cut interest rates on the UOB One account last month. Ms Jacquelyn Tan, head of group personal financial services at UOB, said the bank regularly reviews interest rates to ensure they remain competitive and to reflect market conditions.

Source: Read Full Article