Maximise your savings potential and stay ahead of inflation with these simple strategies
As inflation continues to drive up the prices of goods and services, finding ways to protect your savings is crucial. The introduction of a GST increase in 2023 further intensifies the financial pressure, causing many of us to feel that our salaries are shrinking as we try to save.
Frustrated by this, I decided to explore how I could make my money work for me, especially with DBS as my bank. As someone not particularly inclined towards finance, I expected this journey to be challenging. However, I was pleasantly surprised to find that there are straightforward methods to maximise savings with DBS/POSB.
Here are four ways you can multiply your savings and fight inflation.
1) Switch to a Multiplier Account Instead of leaving your money in a regular savings account with a minimal interest rate of just 0.05%, consider switching to a Multiplier account. This account offers higher interest rates based on your spending and saving habits, which makes it much more rewarding.
From November 1, DBS/POSB increased the interest rate on the Multiplier account to a competitive 4.1% p.a., up from 3.5%. If you’re like me and spend around S$200 a month on everyday expenses, you could earn up to S$448.95 in interest annually by depositing your salary into a Multiplier account. Compare this to just S$14.60 from a standard eSavings account!
2) Utilise the POSB Save As You Earn (SAYE) Account Pair your Multiplier account with a POSB Save As You Earn (SAYE) account for even greater benefits. With SAYE, you can automatically transfer a portion of your monthly salary into a separate account to build savings.
In addition, POSB SAYE accounts now offer a cash gift interest rate of 3.5% p.a. If you deposit S$100 per month into your SAYE account, your balance could grow by S$89.13 in just two years, alongside your accumulated savings.
3) Use a POSB Everyday Credit Card It may sound counterintuitive to get a credit card to save money, but the POSB Everyday Card offers rebates that can help reduce everyday expenses. With cash rebates on groceries, electricity bills, and transport, you’ll save money while spending on essential items.
For example, if you spend S$100 on transport and groceries, you could earn around S$12 in rebates each month. Additionally, your card expenditures could help you qualify for higher interest rates on your Multiplier account, making your savings grow faster.
4) Access 24,000 Deals with the DBS Lobang Kit DBS has curated over 24,000 deals across 12 categories in their Lobang Kit, offering discounts and promotions that can help you save on everything from groceries to entertainment. You can access up to 50% off across hundreds of merchants, potentially saving S$59 each month. Just use your DBS/POSB debit or credit card to enjoy the perks.
Maximise your savings and combat inflation effortlessly
Inflation is expected to persist, but with DBS/POSB’s solutions, you can make the most of your finances. It’s simple, affordable, and accessible. Take a few moments to explore these options, and you’ll be on your way to saving more while keeping up with rising costs.
