How Couples Can Maximise Interest Earned On their own DBS Multiplier Accounts Using a Joint Account
Before you go through the steps below, it is important to sit down and consult with your spouse to decide if you are both ready to produce a joint account together.
A joint account serves the objective of being a shared account between you and your partner. Among the best methods to maximise the eye earned with a joint account with your partner is to have both a joint account as well as a DBS Multiplier Account.
Step 1: Both Open Individual DBS Multiplier Accounts
The DBS Multiplier as an individual checking account that provides attractive rates of interest with requirements which are reasonable to achieve. However, DBS Multiplier accounts are just available as a personal account. Which means that DBS Multiplier accounts can't be joint accounts. When there is several account holder to the DBS Multiplier account, you won't enjoy the higher rates of interest accorded.
DBS Multiplier Accounts can be easily opened online at your own convenience. Your aim when creating personal DBS Multiplier accounts is to individually maximise the money earned inside your individual accounts (as much as $100,000) while earning higher interest rates with the help of some pot account.
Step 2: Open Joint Account
Opening some pot account means having both your names as the account holder. For DBS Multiplier account users, this joint account should also be a DBS/POSB account.
There are a couple of various kinds of joint accounts: Joint-All or Joint-Alternate.
Joint-All: Any transaction in the account must be acknowledged by both account holders.
Joint Alternate: Both you and your partner could make transactions for example withdrawals individually. Unlike a Joint-All account, one party can make a transaction independently without requiring the permission or acknowledgement of the other party. For example, You can both use different ATM cards to withdraw from the joint account.
Step 3: Credit Salary Into Joint Account
The DBS Multiplier recognizes salary credited in any DBS/POSB account, hence it is not necessary to possess your salary credited in to the DBS Multiplier Account to enjoy higher interest rates. Rather, having a joint account in place, you need to both credit your salary into the joint account instead.
Crediting your salary into this new joint account will still ensure that you and your partner satisfy the salary crediting element of the DBS Multiplier.
When you credit both salaries in to the account, both your salaries are totalled and recognised as salary credited, allowing both of you to hit the next tier of the DBS Multiplier.
Combined Salary Credited = Earnings of Person A + Earnings of Person B
For illustration, Jane earns $3,000 and Peter earns $3,000. Individually, it is likely that despite their credit card spending and investments, they'd still fall within the >$2,500 to <$5,000 tier. However, by crediting both salaries in to the joint account, the salary credit amount in each of Jane and Peter's DBS Multiplier account is known as $6,000. This bumps both Jane and Peter's DBS Multiplier accounts in to the next tier (>$5,000 to <$15,000).
Step 4: Credit Your Dividends Into Joint Account
Similar towards the change in salary crediting, both account holders should also alter the direct crediting banking account in CDP out of your individual account towards the joint account.
Here's an example of how this could work.
Jane holds stocks that give dividends in January and February. Peter holds stocks that give dividends in May and November. When the dividends are credited to their own individual accounts, Jane has only investment transactions in January and February while Peter only has investment transactions in May and November.
By crediting the dividends from their CDP into the joint account, both Jane and Peter will now satisfy the investments criteria for that months of January, February, May and November. Furthermore, if the dividends credited really are a significant sum, it can also assistance to bump both account holders in to the next tier (similar to the salary crediting situation).
There are two ways to do that.
Option 1: Login to CDP, change it out under Direct Crediting Service
Option 2: Make use of the Direct Crediting Service (DCS) provided by DBS
Step 5: Transfer Money To Your DBS Multiplier Account
Your wages are now credited in to the joint account. Which means that your partner has access to your salary and you've got use of his/hers too.
Remember to transfer your money out of your joint account to your own DBS Multiplier to 1) have your personal salary to use and 2) enjoy more returns. Keep in mind that the eye is calculated based on the average daily balance inside your DBS Multiplier account. Hence, to earn more interest, you should transfer your hard earned money as early as possible for your DBS Multiplier account.
Lastly, be sure to spend on your charge card to ensure you satisfy the credit card spending criteria.
While it could be a hassle to have to always transfer your salary and dividends out of the joint account into your DBS multiplier for your own personel use, you enjoy the benefit of combining both you and your partners' salaries and dividends for optimum interest.
Creating some pot account requires a lot of trust. If you are ready to take this step to produce a joint account together with your partner, this is the best way to increase the interest you both can earn.