If you’re a DBS Singapore credit cardholder, you may be wondering about cash advance fees. A cash advance is a short-term loan that allows you to withdraw cash from an ATM or bank. These loans often come with high fees and interest rates, making them an expensive way to borrow money. DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction. In addition, the finance charge imposed on cash advances is 28.5% p.a. on the amount withdrawn and is chargeable on a daily basis from the withdrawal date until full payment.
It’s important to understand the cash advance process before deciding to take one out. To get a cash advance, you’ll need to have a credit card with a cash advance limit. You can then withdraw cash from an ATM or bank using your credit card. Keep in mind that cash advances often come with high fees and interest rates, so it’s important to consider your other options before taking one out.
Understanding the financial implications of cash advances is crucial. Cash advances are an expensive way to borrow money, and the fees and interest rates can add up quickly. If you’re not able to pay off the balance in full by the due date, you’ll be charged interest on the outstanding balance, which can quickly spiral out of control. It’s important to consider the long-term financial impact of taking out a cash advance and to explore other options if possible.
Key Takeaways
- DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction, and a finance charge of 28.5% p.a. on the amount withdrawn.
- Cash advances are an expensive way to borrow money, and it’s important to understand the financial implications before taking one out.
- If possible, explore other options before taking out a cash advance to avoid high fees and interest rates.
Understanding Cash Advance Fees
If you are considering taking a cash advance on your DBS credit card, it is important to understand the fee structure associated with it. In this section, we will discuss the DBS cash advance fee structure and compare it with other credit cards.
DBS Cash Advance Fee Structure
DBS imposes a cash advance fee on its credit cards, which is charged on a daily basis from the date of withdrawal until receipt of full payment. The finance charge imposed on cash advance is 28.5% p.a. on the amount withdrawn, with a minimum charge of S$2.50. This means that if you withdraw S$1000 as cash advance, you will be charged S$28.50 per year until you pay off the amount.
In addition to the finance charge, DBS also imposes a transaction fee of 8% or S$15, whichever is greater, for each cash advance transaction. This means that if you withdraw S$500 as cash advance, you will be charged S$40 as transaction fee. The cash advance limit on DBS credit cards is capped at S$5,000, and there is no minimum withdrawal amount.
Comparing Fees Across Credit Cards
When it comes to cash advance fees, DBS is not the only credit card provider in Singapore. Other banks like UOB and OCBC also charge cash advance fees on their credit cards. However, DBS’s cash advance fee is relatively lower than UOB and OCBC, which charge 28% and 28.92% per year, respectively.
It is important to note that cash advance fees can be quite high across all credit cards. Therefore, it is advisable to avoid taking cash advances unless it is absolutely necessary. If you need cash urgently, consider other options like personal loans or borrowing from friends and family.
In conclusion, understanding the cash advance fee structure on your DBS credit card is crucial to avoid paying unnecessary fees. While DBS’s cash advance fee is relatively lower than other banks, it is still advisable to avoid taking cash advances unless it is absolutely necessary.
The Cash Advance Process
If you need quick cash, DBS Singapore offers a cash advance service that allows you to withdraw money from your credit card. Here’s what you need to know about the process.
Application and Approval
To apply for a cash advance from DBS, you must be a DBS customer and have a credit card with available credit. You can apply for a cash advance online through DBS internet banking or at any DBS ATM. When applying, you will need to provide your NRIC or passport and your credit card PIN.
Once you submit your application, DBS will review it and provide you with an approval-in-principle. If approved, you can access your funds immediately.
Accessing Funds
To access your cash advance funds, you can withdraw money from any DBS or POSB ATM. The maximum withdrawal amount per day is $3,000, and there is no minimum withdrawal amount. However, keep in mind that a transaction fee of 8% or $15 (whichever is greater) applies for each cash advance transaction.
If you prefer not to use an ATM, you can also use DBS Cashline to access your cash advance funds. With DBS Cashline, you can withdraw cash at a lower interest rate than with a credit card cash advance.
Overall, the cash advance process with DBS Singapore is straightforward and convenient. Just make sure to understand the fees and interest rates before applying, and use the service responsibly to avoid accumulating debt.
Financial Implications of Cash Advances
If you’re considering a cash advance on your DBS credit card, there are a few financial implications you should be aware of. In this section, we’ll cover the interest rates and finance charges associated with cash advances, as well as the impact they can have on your credit score.
Interest Rates and Finance Charges
When you take out a cash advance on your DBS credit card, you’ll be charged a finance charge of 28.5% p.a. on the amount withdrawn. This charge is levied on a daily basis from the withdrawal date until full payment is received. Additionally, a minimum finance charge of S$2.50 is applicable on your card account.
It’s important to note that the interest rate on a cash advance is typically higher than the prevailing interest rate on personal loans. This is because cash advances are considered to be a higher risk for lenders, as they are usually taken out by individuals who are in need of immediate cash.
Impact on Credit Score
Taking out a cash advance can also have an impact on your credit score. When you take out a cash advance, the amount of the advance is added to your outstanding balance. This can increase your credit utilization ratio, which is the amount of credit you’re using compared to the amount of credit you have available.
A high credit utilization ratio can negatively impact your credit score, as lenders may view you as a higher risk borrower. Additionally, if you are unable to repay the cash advance in full, the interest charges will compound, which can make it even harder to pay off your debt.
In summary, while cash advances can be a convenient way to access cash quickly, they come with higher interest rates and finance charges than personal loans. Additionally, taking out a cash advance can negatively impact your credit score if you’re unable to repay the advance in full. If you’re considering a cash advance, it’s important to weigh the pros and cons carefully and to make sure you can afford to repay the advance before taking it out.
Repaying Your Cash Advance
When you take out a cash advance, it’s important to have a plan for repaying it. DBS Singapore offers flexible repayment terms to help you manage your debt.
Repayment Terms
The minimum monthly payment for a cash advance is 2.5% of your outstanding balance or $50, whichever is higher. You can choose to repay your debt in days, weeks or months, depending on your financial situation.
It’s important to note that interest is charged on a daily basis from the withdrawal date until full payment is received. The finance charge imposed on cash advances is 28.5% p.a. on the amount withdrawn, and a minimum finance charge of $2.50 is applicable on your card account.
Avoiding Additional Charges
To avoid additional charges, it’s important to make your payments on time. Late payment charges may be imposed if you don’t make your minimum monthly payment by the due date.
If you’re having trouble repaying your cash advance, it’s important to contact DBS Singapore as soon as possible. The bank may be able to offer you a repayment plan or other options to help you manage your debt.
Remember, taking out a cash advance can be a convenient way to access cash when you need it, but it’s important to have a plan for repaying your debt. With DBS Singapore’s flexible repayment terms, you can manage your debt and avoid additional charges.
Alternatives to Cash Advances
If you’re looking to avoid the fees associated with cash advances, there are a few alternatives you can consider. Here are two options that could be worth exploring:
Personal Line of Credit
A personal line of credit is a flexible borrowing option that gives you access to funds up to a certain limit. Unlike a cash advance, you only pay interest on the amount you borrow, and you can use the funds for a variety of purposes. This could be a good option if you need to cover unexpected expenses or if you’re looking for a way to consolidate your debt.
With a personal line of credit from DBS, you can borrow up to four times your monthly income, subject to approval. There’s no processing fee to apply, and you can access the funds through your DBS ATM card or online banking. You’ll also enjoy a competitive interest rate, which is calculated daily and charged monthly.
Personal Instalment Loan
Another option to consider is a personal instalment loan. This type of loan allows you to borrow a fixed amount of money and repay it over a set period of time. Unlike a cash advance, you’ll know exactly how much you need to pay each month, which can help you budget more effectively.
DBS offers personal instalment loans with competitive interest rates and flexible repayment terms. You can borrow up to ten times your monthly income, subject to approval, and you’ll have up to five years to repay the loan. The application process is straightforward, and you’ll need to provide a few basic documents to get started.
Both of these options could be a good alternative to cash advances, depending on your needs. Consider your income, expenses, and financial goals when deciding which option is right for you.
Frequently Asked Questions
What are the ways to circumvent a cash advance fee with DBS?
Unfortunately, there are no ways to circumvent a cash advance fee with DBS. Every cash advance transaction made with your DBS credit card will incur a fee, which is calculated based on the amount withdrawn.
Can the cash advance fee be waived by DBS, and if so, how?
In general, DBS does not waive cash advance fees. However, in some cases, the bank may waive the fee for customers who have a good credit history and have been with the bank for a long time. To request a waiver, you can contact DBS customer service and explain your situation.
What steps must one take to settle a cash advance fee with DBS?
To settle a cash advance fee with DBS, you must make a payment for the amount owed. You can do this through DBS iBanking, ATM, or by visiting a DBS branch. Keep in mind that the finance charge on cash advances is calculated on a daily basis until the full amount is repaid, so it’s best to settle the fee as soon as possible.
How hefty is the fee for a cash advance transaction with DBS?
The fee for a cash advance transaction with DBS is 8% of the amount withdrawn or S$15, whichever is greater. In addition, a finance charge of 28.5% p.a. is charged on a daily basis from the date of withdrawal until the full amount is repaid. This makes cash advance transactions with DBS quite expensive, so it’s best to avoid them if possible.
Why does DBS impose a fee for cash advances?
DBS imposes a fee for cash advances to cover the costs associated with providing this service. Cash advances are considered to be high-risk transactions, as they involve lending money to customers without any collateral. The fee helps to offset the risk and ensure that the bank is able to continue offering this service to its customers.
Where can I find a calculator to estimate DBS cash advance fees?
You can find a calculator to estimate DBS cash advance fees on the bank’s website. Simply input the amount you wish to withdraw, and the calculator will provide an estimate of the fees and charges you can expect to pay. Keep in mind that the actual fees may vary depending on your specific credit card and account details.