Custody Fees

Custody Fees

What are custody fees and why do I have to pay them?

DBS helps you safekeep your securities at a nominal fee. We call this a custody fee.

DBS Treasures started charging custody fees since January 2015, details are listed in our DBS Treasures Pricing Guide when you first joined us.



FAQs about DBS Treasures Custody Fees

How much is the custody fee?

Please refer to the DBS Treasures Pricing Guide for the details.



Why do you have custody fees?

DBS uses multiple custodians to safekeep your securities. The 0.20% or minimum SGD100 per market is a flat rate to you and does not equate to the actual custodian expenses incurred by the bank.



Which type of investments will be charged custody fees?

The following types of investments have custody fees.
1. Debts Securities and Structured Notes
2. Exchange Listed Securities
3. Investment Funds

For more details, please refer to our DBS Treasures Pricing Guide.



Is custody fee applicable for funds too?

Yes, but custody fees for share classes approved by DBS Funds Platform will be waived. For details, please refer to our DBS Treasures Pricing Guide on Investment Funds.



How often and when will I be charged custody fees?

Custody fees are charged twice a year in:

1. July (for January – June)
2. January of the following year (for July – December)

Please be reminded to have enough funds in your Multi-Currency Settlement Account (MCSA) so that the account does not go into overdraft on the settlement date of the custody fees.



How are the custody fees calculated?

Custody fees are calculated on the last day of every month and then accumulated for the first half of the year (January – June) and the second half (July – December).

The following formula is generally applied:

a) Monthly Custody Fee = [(Month-end Quantity) x (Month-end Price) x (Custody Fee Rate) x (Month-end FX Rate to SGD) (if applicable)] / 12

b) Add up the monthly custody fees from January to June or from July to December to get the total amount of custody fees that is chargeable for the past 6 months.

For example, at the end of 6 months, if the calculated amount is SGD50 for Malaysia market, SGD150 for Hong Kong market, and SGD200 for US market, a total of SGD450 for custody fees will be charged [Malaysia Market = SGD100 (minimum charge applies), Hong Kong Market = SGD150, US Market = SGD200].



If I have a bond in January but transfer it out before month end, will I be charged custody fees for the bond in July?

If the bond is transferred out of the Wealth Management Account before month end, then no custody fee will be charged for the bond in July.



If I have a bond in January and sell it off in March, will I be charged custody fees for the bond in July?

Custody fees will be charged for January and February. It will be debited from your Multi-Currency Settlement Account (MCSA) in July.



Will I be charged custody fees if I have already closed my Wealth Management Account?

Any applicable custody fees will be computed and charged at the point of Wealth Management Account closure. There will not be any custody fee charged after the account is closed.



If I have holdings in foreign currency, what currency will the custody fees be charged in?

All custody fees are charged in SGD by default unless you have instructed the bank to amend the fee currency on your portfolio previously.



Will I get an advice for custody fees being charged?

Yes, you will receive a debit advice upon successful debiting of your Multi-Currency Settlement Account (MCSA).



How will I be notified if there are any changes or updates to the DBS Treasures Pricing Guide?

DBS Treasures will inform you of any updates to our DBS Treasures Pricing Guide through messages in your monthly statements.



Information is correct as at 20 May 2020.