THE public's fears that interest rates could start rising have prompted DBS Bank to introduce a product offering to help protect homeowners in case their instalments start increasing.

The DBS Interest Guard acts like an insurance policy for new and existing mortgages that are pegged to the interbank rate, which will increase if global rates rise.

The product means a borrower can cap his interest rate for a set period no matter what happens to rates in the open market.

It will cost from $5 to $23 per month for every $100,000 of loan depending on the form of protection picked.

Protection can be bought for only two or three years. After that the borrower will have to pay instalments at the new interest rate.

Customers can choose when their protection kicks in.

One option starts when the local interbank rate hits 1.5 per cent.

The more expensive option is triggered when the interbank rate hits 1 per cent, providing a lower interest rate cap for the borrower.