DBS vs OCBC: Which Bank Deserves Your Loyalty?

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Complaining about the interest you get on your savings account is slightly akin to whining about COE prices – they’re not really going to get that much better. But now, two local banks have come up with schemes that aim to change your mind, and pledge allegiance to them as well. We take a look at these two multiplier schemes here:

With most people clearly aware now that savings accounts are going to do next to nothing to grow their money, it’s no wonder porcelain piggy banks are starting to get popular again on e-commerce sites. DBS and OCBC hope to change that impression of just how useless effective savings accounts are with their new schemes.

We take a head-to-head approach and compare the two accounts to see who comes out on top in this simple infographic:

Why Is The OCBC 360 Account Better?

We looked at 3 main factors when considering which account was better. These factors were:

  • Accessibility: How easy it is to hit the bonus interest rate
  • Interest Rate: In absolute terms, which bank offers a better interest rate
  • Peripheral Products: What financial products do these banks offer that encompass the savings program

One point to note is that both accounts only pay the maximum interest rate for an account balance of up to $50,000. Anything above that earns the basic interest rate.

Accesibility – Winner: OCBC

In terms of how easy it is to hit the bonus rate, OCBC just requires at least a monthly balance of $3,000, together with the above 3 activities to qualify for the bonus interest rate. Put your salary in, GIRO your insurance and pay your phone and other credit card bills, and spend $400 on your credit card, and you’re good to go. DBS on the other hand, requires a monthly cash flow of $20,000.

It’s important to note also that since the DBS scheme encompasses your home loan, this is where your Total Debt Servicing Ratio (TDSR) kicks in. What this means is that your total debt (credit card debt, home loan and other loans) can only add up to 60% of your salary. Mathematically, to hit a $20,000 cash flow, you’d have to be earning about $12,500 a month (Salary: $12,500 / Credit Card and Home Loan spend: $7,500)

Interest Rate – Winner: OCBC

For absolute bonus interest rate, OCBC definitely wins here. However, it’s important to note that DBS’s basic interest rate is better. So, if you are someone who is earning a lot more (and plan to exceed the $50,000 in account balance), then it definitely makes more sense to go with DBS.

Peripheral Products – Winner: Tie

Given that the DBS scheme encompasses your home loan payments, this is a strong swing in favour of DBS as they have one of the best fixed-rate home loans on the market. However, the simplicity of the OCBC scheme and their suite of strong credit cards makes for a compelling case for OCBC as well.

Which scheme do you think is better suited for you? Share your thoughts with us here.