DBS, Standard Chartered to cut interest rates further on savings accounts

DBS will cut rates on its flagship DBS Multiplier deposit account and StanChart will cut its interest rate for JumpStart.
DBS will cut rates on its flagship DBS Multiplier deposit account and StanChart will cut its interest rate for JumpStart.PHOTO: ST FILE

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

Singapore's largest lender, DBS, will cut rates for its flagship DBS Multiplier deposit account, which offers customers tiered interest rates on their 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 points when customers credit an income stream - defined as a 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 one percentage point for spending in two categories, and up to 0.8 percentage points for spending in three or more categories.

Customers can go here for more information.

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, 2021, the interest rate on the first $20,000 will be 0.4 per cent per annum, down from the current 1 per cent.

The rate on balances above $20,000 will remain at 0.1 per cent.

The bank halved rates in July.

Other banks have also cut their rates in recent months.

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

United Overseas Bank also cut interest rates on the UOB One account in November.

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.