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.
Profile | Behaviours You Already Do | What to Optimise | EIR Expectation* |
---|---|---|---|
Salary + modest card spend | Monthly salary credit; S$500–S$800 card spend | Automate 2 recurring bills | Mid tier |
High spender | ≥ S$1,500 card spend; salary credit | Maintain balance within cap | High tier (within cap) |
No salary credit (self-employed) | Irregular income | Use bill counts + balance growth | Low-mid tier |
Set-and-forget saver | Stable balance, few transactions | Consider fixed deposit for part of funds | Predictable |
*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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