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 August 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.

Note that the higher interest rates of up to 3.80% p.a. are applicable only up to the first S$100,000 in the DBS Multiplier Account. 

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?

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.

Scenario 2: Fresh university grad with $3,500 pay

If you are a Fresh Graduate with a monthly income of $3,500. Let's assume you have $40,000 in savings as a graduation gift from your parents and ang baos etc...

Your take home would be $2,800 after CPF. Assume you credit your salary, spend $600 on your credit card and $200 on insurance premium bought with DBS (Salary Credit + Transactions in 2 categories). 

That would make your total eligible transactions to be $3,600.

Thus, you'd qualify for the 1.50% p.a tier if you were to open a DBS multiplier account!

Which account should you open?

The DBS multiplier account!

You'd get a flat 1.50% p.a for your first $50,000, compared to Jumpstart which gives you 0.40% p.a for the first $20,000.

Moreover, when your pay increases or if you decide to invest with DBS, you'd be in the

Salary Credit + Transactions in 3 categories tier. 

This increases your interest p.a. earned from 1.50% to 2.20%.

Scenario 3: Young newly wed with $5,000 pay and non-working/stay home spouse

If you are earning a decent income and your other half isn't yet, consider this strategy.

Both husband and wife must first have a DBS Multiplier account individually. And create a joint account bearing both names.

Credit your salary to any DBS/POSB joint account. Both DBS Multiplier accounts will ​fulfill the salary credit as a transaction!

Let's assume you earn $5,000 and your take home is $4,000 after CPF. You credit your salary to the DBS/POSB joint account.

Both of you spend $1,000 on respective credit cards and $200 on home loan with DBS

This would make both your total eligible transactions to be $5,200 and with Salary Credit + Transactions in 2 categories.

In fact, you can both qualify and enjoy 1.80% up to the $50,000 level in both accounts! =)

Conclusion and my choice as an undergrad

Personally, I think that both accounts cater to different demographics.

The DBS multiplier account appeals to a more financially stable/independent demographic.

The multi-currency convenience doesn't pose as an incentive for me as I don't travel for long durations or study abroad. Not to mention, I have to maintain a minimum amount in the multi-currency account or pay a fall below fee of $4.50.

The other categories involves credit card transactions, taking up home loans which also isn't applicable in my current stage in life.

On the other hand, the Standard Chartered Jumpstart account appeals to the younger or the "still starting" demographic.

Personally, I believe that saving is for the long term hence I would still go with DBS multiplier even if I have low capital to start with. 0.40% interest rates is only applicable to the first $20K, any addition is only awarded 0.10% (how can??) . 

In my opinion, it is a hassle to have to switch to other higher saving accounts when the amount increases, DBS multiplier provides with progressive increment in interest rates which will also incentivise me to save more to achieve the higher interest rates. 

But again, if rates can go down it also means it can go up too! You could keep your money in hope for higher interest rates in time to come! (but I don't think will happen any time soon...) 

Think about $20K being spread across the 8 years (age limit for Standard Chartered: 18-26 y/o), meaning each year you have to save $2.5K and about $210 per month. This is saving roughly $7 dollars a day, equivalent to having dinner at home instead of eating out. 

Using this approach, you can reach $2000 in just about 10 months. And afterwards, interest rate is already more than 0.40%!