SINGAPORE (THE BUSINESS TIMES) – DBS and Standard Chartered will again slash rates on their respective savings accounts from Jan 1, 2021 on the back of a grim interest rate environment.
The interest rate for Standard Chartered’s popular Jumpstart savings account will be lowered to 0.4 per cent per annum for the first $20,000 – down from the prevailing 1 per cent – and will remain at 0.1 per cent for balances above $20,000. The bank previously halved rates in July.
Meanwhile, Singapore’s largest lender DBS will make the third cut on its flagship deposit account since May. The DBS Multiplier account offers customers tiered interest rates that are stepped up if they have more transactions with the bank, and transact in larger amounts. The determined rate is then applied on the account balance.
As an example, when customers credit an income stream – defined as a salary, dividends, or both – into the Multiplier account and make just one more DBS transaction in an eligible category to total between $2,000 and $2,500 per month in transaction value, interest earned on the first $25,000 will be reduced to 0.4 per cent from Jan 1, from 0.7 per cent currently.
For customers that credit their income into the Multiplier account and make just one more DBS transaction in an eligible category, totalling to at least $30,000, the rate on the first $25,000 will be more than halved to 0.6 per cent, from 1.3 per cent currently.
Interest payouts for amounts where customers credit income and make two more DBS transactions in two separate eligible categories will similarly be slashed. Rates will be reduced across the board for the first $50,000 in the account balance.
For instance, if a customer credits an income and makes two other transactions that add up to between $5,000 and $15,000, the interest rate applied on the first $50,000 will be slashed to 0.8 per cent, from 1.8 per cent currently.
For the next $50,000 in the account balance, interest payouts for amounts where customers credit income and make three or more DBS transactions will likewise be cut across all tiers.
Earlier in October, OCBC made tweaks to its 360 account – the third rate cut since May – while UOB lowered rates on the UOB One account in August.
Other financial institutions have also followed suit.
As at Nov 1, insurtech Singlife lowered interest payouts on the Singlife account to up to 2 per cent for the first $10,000. They were previously at up to 2.5 per cent. The crediting rate of up to 1 per cent for the next $90,000 remains.
In September, Robo-adviser StashAway reduced the projected interest rate for its cash management portfolio StashAway Simple from 1.9 per cent to 1.4 per cent.