Chasing the headline “up to X%” often backfires. This playbook shows how bonus interest tiers really work, which behaviours unlock them, and how to pick a plan that matches your monthly routine.

Contents

  • Base vs bonus rates (what banks don’t emphasise)
  • Behaviour buckets that matter
  • Effective Interest Rate (EIR): the only number to compare
  • Scenario playbook (choose by lifestyle)
  • Caps, cliffs, and traps
  • A monthly routine that actually works

Base vs bonus rates

Banks advertise a small base rate plus stackable bonus for salary credit, card spend, investing/insurance, bill payment, or maintaining balance tiers. The balance cap (often first S$50k–S$100k) defines where the bonus applies.

The behaviour buckets

  • Salary credit (via GIRO/PayNow from employer)
  • Card spend (posted transactions, not pending)
  • Invest/Insure (often requires eligible products)
  • Bill pay (GIRO/PayNow; sometimes minimum count)
  • Grow/Save (net increase month-on-month)

Effective Interest Rate (EIR)

Ignore the headline “up to”. Calculate EIR on your actual balance and behaviours.

ProfileBehaviours You Already DoWhat to OptimiseEIR Expectation*
Salary + modest card spendMonthly salary credit; S$500–S$800 card spendAutomate 2 recurring billsMid tier
High spender≥ S$1,500 card spend; salary creditMaintain balance within capHigh tier (within cap)
No salary credit (self-employed)Irregular incomeUse bill counts + balance growthLow-mid tier
Set-and-forget saverStable balance, few transactionsConsider fixed deposit for part of fundsPredictable

*EIR depends on each bank’s tiers and your average daily balance. Use our live Savings Rates as a starting point.

Caps, cliffs, traps

  • Bonus interest usually stops above the cap.
  • Missing any behaviour may drop you to base for the whole month.
  • Don’t buy financial products solely to unlock bonus interest—check fees and lock-ins.

A monthly routine that works

  • Salary credit on the 1st week → card spend spread across the month → 2–3 bill payments → keep balance within cap → review at month-end.
  • Recalculate EIR quarterly; move excess to fixed deposit or T-bills if you don’t need liquidity.
Tools: Savings Rates · Account Fees · Compare Two Banks


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Sophia Tan

About the Author

Helen Lili – Editor, Research Lead
Helen leads tariff analysis and product change tracking. She maintains the normalized dataset that powers our comparison tables and ensures each claim links back to a dated primary source. Read more articles

Disclaimer:The BankOpen Singapore Editorial Team consists of financial analysts, banking industry professionals, and experienced writers. We are dedicated to providing accurate, up-to-date, and practical insights to help readers navigate Singapore’s banking landscape and make informed financial decisions. The information provided in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. Always consult with a qualified professional before making any banking or investment decisions.