Converting to DBS multiplier account

I used to be on the DBS cashback program. I already had salary crediting and a housing loan with the bank. With a token spending on the card, I had met the minimum 3 category criteria to receive about $45 worth or cashback per month. The rest of my funds were parked at either Maybank iSAVvy or StandChart e$aver, both which offers higher interest on fresh funds deposits. Rotating funds between the two accounts once every 2 months kept the "fresh" status.

However, interest rates have fell significantly this year. Last checked, the 1-month SIBOR is only at 0.5%. Correspondingly, deposits at the accounts are returning only 1.3% for iSAVvy and 1.1% for the e$avers for amounts of $50k - 200k.

For the DBS Multiplier, the interest rates gets a 0.2% boost when one more category is added. It's easy to add the investment category by setting up a RSP (Regular Savings Plan) to purchase the Nikko AM STI ETF monthly. Minimum amount is $100 only. Sales charge is 0.82%, meaning that about dollar is deducted off for each $100 invested. There won't be any redemption charge. It's also good timing as new RSP setups are currently eligible for a cashback promotion that gives rebates on sales charges.

Since I've been banking with DBS, it is easy to transit to the Multiplier account. I will get 2.2% for the first $50k and 2.4% for the remainder funds. With the current gloomy situation, it'll is a small bonus to get a few more interest dollars on my savings and emergency funds.

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