This is a type of bank account wherein the account holders are paid a fixed amount of interest for depositing a particular sum of money for a specific period of time, is known as fixed, term or time deposit account. It is different from other savings accounts mainly because your money gets locked in for a specific period of time. To make full use of the account, you have to keep the money there for a much longer period of time.
All major banks in Singapore provide customers with such term deposit options, and the DBS Premier Income Account is one such account.
DBS Premier Income Account Features and Benefits
This term deposit account has multiple features, which are listed below:
- You will get better rates for exchanging your foreign currency money.
- You get the option of depositing your money for a period of 6 months to 5 years.
- By keeping your money in the fixed deposit account as collateral, you can opt for an overdraft facility for an amount of up to S$10,000 at a reasonable interest rate.
- You will get to earn more with an additional rate of 0.10% per year, but only for the current first tier rate for deposits ranging from S$1,000 to S$9,999.
- Once your deposit matures, it will automatically get renewed for the same term at the current rate of interest.
- It is very convenient to place the deposit at various branches or via DBS iBanking.
- You have the option of receiving your interest either in a lump sum when it matures or in batches each month. This option is available for deposits that last at least for a year.
- Funds and deposits in Singapore dollars under the Supplementary Retirement Scheme and deposits of depositors who do not have a bank account with the same bank are protected with a coverage of up to S$50,000. This protection is provided by the Singapore Deposit Insurance Corporation. However, the deposits in Singapore dollars under the CPF Retirement Sum Scheme and CPF Investment Scheme are combined and protected separately with a protection for up to S$50,000.
DBS Premier Income Account interest rate
This account offers a uniform rate of interest for a particular term irrespective of the amount deposited. As we mentioned earlier, an additional 0.10% interest is given out for deposits of less than S$100,000. Here are the rates in detail:
|Period (years)||S$1,000 - S$9,999||S$10,000 – S$999,999|
|5||1.3% p.a.||1.2% p.a.|
|4||1.25% p.a.||1.15% p.a.|
|3||1.2% p.a.||1.1% p.a.|
|2||1.1% p.a.||1% p.a.|
|1.5||0.7% p.a.||0.6% p.a.|
|1||0.45% p.a.||0.35% p.a.|
|0.5||0.3% p.a.||0.2% p.a.|
- In a joint account, at least one account holder must be 55 years or older.
- For a six-month period, the initial deposit has to be at least S$10,000.
DBS Premier Income Account FAQs
Q. What will happen if the balance is zero in my Premier Income Account?
A. If the balance in this account is zero for over a year, the bank will close it.
Q. Can I change my personal Premier Income Account into a joint one and what will be the charges?
A. Yes you can change your personal Premier Income Account into a joint one and there are no charges.
Q. Where will I get the information on the interest rates?
A. You can view the interest rates on the website or you can call 1800 111 1111.
Q. Can I close this account and withdraw the amount before maturity?
A. Yes you can, but you may not get any interest.