There is good reason for retiree Koh Seow Lar to smile all the way to her banking app.

Seven years ago, she opened a Multiplier savings account with DBS, mainly as a convenient way to transfer money to her son, who was then studying in London.

Today, that account offers Madam Koh, 67, a higher interest rate on her savings, prompted by aggressive US Federal Reserve interest hikes to tame inflation.

For the prudent mother of one, convenience has now been coupled with unexpected compensation – helping to hedge against rising prices, stagnating income and all-round uncertainty.

“It’s a pleasant bonus,” says the savvy investor, who is always alert to trends and opportunity. “I’d never dreamt (in pre-Covid low-interest times) that a savings account would give me reasonable, competitive returns.”

Madam Koh, who is an empty nester along with her 66-year-old husband, is keen to grow their nest egg. “Every little bit helps,” she says, “especially at our age.”

But, she wonders, with other banks dangling competitive rates: Is a bird in the hand better than two in the bush? Should she stick with Multiplier, and its maximum interest rate of 4.1 per cent a year?

DBS’ reply: Simpler is better; there is logic in being holistic.

“The DBS Multiplier programme… doesn’t require customers to jump through hoops to earn higher interest on their account balances,” says Mr Jeremy Soo, DBS’ head of Consumer Banking Group.

“It is inclusive and broad-based. We have done away with plenty of pre-conditions so that everyone – from gig workers, tertiary students and full-time national servicemen (NSFs) to salaried workers and retirees – can participate easily and qualify for higher interest across more transaction categories.”

To qualify for the maximum interest rate of 4.1 per cent, customers will need to credit an income source to the account – via salary, dividends or SGFinDex – and transact at least $30,000 in three eligible categories.

“We have also increased our balance cap to $100,000 so that customers can earn even higher interest on their balances without having to unlock more transaction categories,” adds Mr Soo.

This is the fifth of a seven-part series titled "Win the race against inflation", in partnership with