Cashback bank cards are the popular sort of bank card for Singaporeans. This shouldn’t be a shock – everybody loves incomes cash by… spending cash. In truth, 71% of individuals surveyed by MoneySmart in our newest bank card survey mentioned they most popular cashback rebates. That is very true for limitless cashback bank cards.
Nevertheless, relating to limitless cashback bank cards in Singapore most of them have a low cashback fee, and a excessive annual payment.
Let’s take a look at every of those 2 concerns:
1. Limitless cashback bank cards have a low cashback fee
We’re not saying a “low” cashback fee is a nasty factor. In any case, when you haven’t any restrict to how a lot you may earn in cashback rebates, there’s little question {that a} fee of 1.5% is beneficiant.
Give it some thought this manner – let’s take a look at how a lot you may earn in a month in the event you cost $5,000 on these playing cards in Singapore:
| Credit score Card | Cashback Fee | Whole Cashback Earned |
| American Categorical True Cashback Card | 1.5% on all spend, 3% for the primary 6 months on the primary $5,000 | $5,000 * 3% = $150 in cashback |
| Commonplace Chartered Limitless Cashback Card | 1.5% on all spend, 3% for international forex spend | $5,000 * 1.5% = $75 in cashback |
There’s no denying that’s fairly substantial. However truthfully, not all of us can spend $5,000 persistently every month. And don’t overlook that after the primary 6 months, the American Categorical True Cashback Card earns you simply as a lot because the Commonplace Chartered Limitless Cashback Card.
So let’s take a look at somebody who spends $3,000 persistently, the result’s one thing like this:
| Credit score Card | Cashback Fee | Whole Cashback Earned |
| American Categorical True Cashback Card | 1.5% on all spend, 3% for the primary 6 months on the primary $5,000 | $3,000 * 3% = $90 in cashback |
| Commonplace Chartered Limitless Cashback Card | 1.5% on all spend, 3% for international forex spend | $3,000 * 1.5% = $45 in cashback |
Nonetheless very respectable, however truthfully, much less spectacular in comparison with our earlier state of affairs.
Alternatively, a card just like the HSBC Advance Card, regardless of needing a minimal spend requirement of $2,000 a month, means that you can earn the utmost cashback fee of three.5% on all your spending.
| Credit score Card | Cashback Fee | Whole Cashback Earned |
| HSBC Advance Card | 3.5% on all spend | $3,000 * 3.5% = $105 in cashback |
What’s the catch? Spend lower than $2,000 a month, and your spending earns cashback at a fee of 1.5%. Spend greater than $2,000 a month, and your spending earns cashback at a fee of two.5%. Both means, your cashback is capped at $70 a month. Meaning you shouldn’t be spending greater than $2,800 a month on this card.
However right here’s the place it will get higher. In case you’re a HSBC Advance banking buyer? Your spending earns an extra 1% cashback. What’s extra, your cashback is now capped at $125 a month. This implies you could now spend as much as $3,571 every month earlier than hitting that cashback cap.
So no, the HSBC Advance Credit score Card is not a limiteless bank card. However for these of you who don’t spend greater than $3,500 a month persistently, it’ll really feel like one!
2. Limitless cashback bank cards have excessive annual charges
| Credit score Card | Annual Charge | Whole Cashback Earned |
| American Categorical True Cashback Card | $171.20 | 1 yr payment waiver |
| Commonplace Chartered Limitless Cashback Card | $192.60 | 2 years payment waiver |
Nobody likes to pay bank card annual charges. Happily for many banks, there’s methods to get the annual payment waived. However even in the event you can’t, be glad that each of those playing cards waive the primary yr’s annual payment.
I imply, you may at all times cancel the cardboard in case your waiver request is denied.
The HSBC Advance Credit score Card has an annual payment of $192.60 as properly. Nevertheless, as a HSBC Advance buyer, your bank card annual payment is perpetually waived!
How simple is it to grow to be a HSBC Advance banking buyer?
Simply credit score a month-to-month wage of not less than $3,500 to a HSBC account, and maintain a HSBC bank card. That’s it.
And contemplating how being a HSBC Advance buyer considerably boosts the standard of the HSBC Advance card, it’s actually a no brainer. What’s extra, as a HSBC Advance buyer you get entry to a complete suite of benefits, like preferential charges and rewards with HSBC and particular person monetary opinions with HSBC Advance Managers.
That mentioned, it’s clear the HSBC Advance Credit score Card isn’t for everybody
We’re not saying that it’s best to simply cancel all of your cashback bank cards and transfer to HSBC. In the end, it’s best to select your cashback bank cards based mostly in your way of life. In case you barely spend $1,000 a month, for instance, and most of your spend is on eating on the weekends, the HSBC Advance Credit score Card might be not the very best card for you.
However what we’re saying is that limitless cashback bank cards aren’t for everybody, particularly if you end up persistently spending about $3,000 every month. The HSBC Advance Credit score Card means that you can earn as much as 3.5% cashback rebates on all spend, with a excessive month-to-month cap of $125 in the event you’re a HSBC Advance banking buyer.
What are your ideas on limitless cashback bank cards? We need to hear from you.
