How to Meet Salary/Spend Criteria for Bonus Interest

Unlocking High Interest: A Practical Guide to Meeting Salary & Spend Criteria

High-yield savings accounts in Singapore, like the DBS Multiplier, UOB One, or OCBC 360, are fantastic tools. They promise attractive interest rates, often significantly higher than a standard savings account. But there’s a catch: to unlock that bonus interest, you have to jump through a few hoops.

The two most common hurdles are salary crediting and minimum card spend. For many, this is where the confusion begins. Does a simple bank transfer count as a salary? Does topping up your GrabPay wallet count as “spend”?

This guide will demystify these requirements so you can stop leaving money on the table and start maximizing your returns.

Table of Contents

• Why Do Banks Have These Criteria?
• Mastering the “Salary Credit” Requirement
• Acing the “Minimum Spend” Criteria
• Common Pitfalls to Avoid
• What If I Can’t Meet the Criteria?
• Final Thoughts
• Sources

Why Do Banks Have These Criteria?

Simply put, banks want to be your primary bank.

By requiring you to credit your salary, they ensure they are the first to receive your monthly funds. By requiring you to use their credit card, they earn transaction fees from merchants. In exchange for this “loyalty,” they reward you with bonus interest. It’s a win-win, but only if you play by their specific rules.

Mastering the “Salary Credit” Requirement

This is often the most rigid requirement. A bank wants to see your official, monthly paycheck land in their account.

What Banks Look For: The “SAL” Code

Nearly all banks in Singapore use an automated system to verify your salary. They don’t have a human checking your employer’s name. Instead, they scan for a specific GIRO transaction code.

The most common code they look for is “SAL” (Salary).

What doesn’t work: A simple FAST transfer from your boss’s personal account, a PayNow transfer, or you transferring money from your own account at another bank. These are not tagged as “SAL” and will almost certainly be ignored by the bank’s system.

What If I’m a Freelancer or Self-Employed?

This is a major pain point for non-traditional workers. If you don’t have a company HR department, how do you get that magic “SAL” code?

1. Check the Bank’s T&Cs: Some banks have explicitly widened their definition. For example, some may allow you to set up a standing GIRO instruction from another bank account (even your own) as long as you label the transaction description as “SALARY.” This is highly bank-dependent.
2. CPF Contributions: Some accounts, like the OCBC 360 Account, offer an alternative to salary credit. You can meet the requirement by making a minimum monthly contribution to your CPF account.
3. Business Account Transfer: If you own a registered business, you can pay yourself a salary via a GIRO transfer from your corporate bank account.

Pro-Tips for Salary Crediting

• Check the Minimum: The requirement is almost always “Salary Credit of at least S$2,000” (or a similar amount).
• Verify on Your Statement: Look for a description that clearly says “GIRO-SALARY” or similar.
• Talk to HR: If the code is wrong, ask your company’s HR to ensure your payment is processed as a “Salary” (SAL) type GIRO.

Acing the “Minimum Spend” Criteria

This hurdle requires you to spend a minimum amount, such as S$500, on an eligible bank card.

This sounds easy, but the devil is in the details. The key word is eligible.

The Golden Rule: Not All Spending is Equal

Banks only give you “credit” for transactions where they are likely to earn a fee. Your S$500 spend must be on qualifying retail transactions.

What Doesn’t Count (Common Exclusions)

This is the most critical list to understand. The following categories are almost universally excluded from your minimum spend calculation:

• Wallet Top-Ups: Topping up your GrabPay, ShopeePay, YouTrip, or Revolut account does not count.
• Bill Payments: Payments to utilities, telcos, and insurance premiums are often excluded.
• Government Payments: Paying your income tax, property tax, or any fines.
• Financial Transactions: Cash advances, balance transfers, and loan payments.

Always read the Terms & Conditions (T&Cs) for your specific card to see the full exclusion list.

Strategies for Meeting Your Spend Goal

1. Consolidate Your “Good” Spend: Make this your default card for all eligible purchases (Groceries, Dining, Shopping, SimplyGo).
2. Use the Right Card: Some accounts, like the UOB One Account, require you to spend on the specific UOB One Credit Card.
3. Track Your Progress: Use your bank’s app. Most have a tracker that shows you which categories you’ve fulfilled.

Common Pitfalls to Avoid

• The “Posting Date” Trap: A transaction made on the 30th might only be posted on the 2nd of the next month. It’s the **posting date** that matters.

  Solution: Complete all your required spending by the 25th of the month to be safe.

• Assuming and Not Checking: Never assume a transaction qualifies. The T&Cs are your only source of truth.

What If I Can’t Meet the Criteria?

If you are a freelancer with irregular income, a student, or simply don’t spend S$500 a month on a card, you are likely losing money with these accounts.

Consider these excellent alternatives in Singapore:

• High-Yield “No-Hurdle” Accounts: Look at digital banks or other accounts that offer a high base interest rate with no conditions (e.g., GXS Bank, MariBank, or CIMB FastSaver).
• Singapore Savings Bonds (SSBs): A very safe, flexible, government-backed saving instrument.
• Cash Management Accounts: Offered by robo-advisors, these invest your spare cash in very low-risk funds to earn a higher yield.

Final Thoughts

Unlocking bonus interest is a “game” you can absolutely win. It just requires a one-time setup and a little bit of ongoing attention.

The entire strategy boils down to two things:

1. Ensuring your monthly income arrives as an official GIRO “SAL” transfer.
2. Channeling all your eligible daily spending (like groceries and dining) onto the one required card.

By understanding the exact rules, you can move from earning 0.05% to 3.0% or more on your savings, which makes a substantial difference to your financial health.

Sources

• MoneySense (Singapore Government): Understanding Bank Accounts
  
  https://www.moneysense.gov.sg/understanding-bank-accounts/
• Central Provident Fund (CPF) Board: What are Ordinary Wages
  
  https://www.cpf.gov.sg/employer/employer-obligations/what-payments-attract-cpf-contributions/ordinary-wages-and-additional-wages
• The Association of Banks in Singapore (ABS): GIRO Payments Explained
  
  https://www.abs.org.sg/e-payments/giro