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 DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction. In addition, the finance charge imposed on cash advances is 28.5% p.a. on the amount withdrawn and is chargeable on a daily basis from the withdrawal date until full payment.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- DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction, and a finance charge of 28.5% p.a. on the amount withdrawn.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 The finance charge imposed on cash advance is 28.5% p.a. on the amount withdrawn, with a minimum charge of S$2.50.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.