If you’re a DBS credit cardholder in Singapore, it’s important to understand the fees and charges associated with cash advances. A cash advance is a service that allows you to withdraw cash from your credit card, which can be useful in emergency situations. However, it’s important to be aware of the fees and interest rates that come with this service.
DBS charges an 8% transaction fee or a minimum of S$15 for each cash advance transaction. Additionally, a finance charge of 28.5% p.a. is imposed on the amount withdrawn and is charged on a daily basis from the withdrawal date until full payment is received. The minimum finance charge applicable on a card account is S$2.50. It’s important to note that the cash advance limit on your credit card is capped at S$5,000.
To apply for a cash advance, you can visit a DBS/POSB ATM and follow the instructions on the screen. Alternatively, you can apply for a cash advance through DBS iBanking or the DBS mobile app. However, it’s important to keep in mind that cash advances should only be used in emergency situations, as the fees and interest rates can add up quickly.
Key Takeaways
- DBS charges an 8% transaction fee or a minimum of S$15 for each cash advance transaction, and a finance charge of 28.5% p.a. is imposed on the amount withdrawn.
- The cash advance limit on your credit card is capped at S$5,000.
- Cash advances should only be used in emergency situations due to the high fees and interest rates.
Understanding Cash Advances
Are you in need of quick cash? A cash advance may be a viable option. In this section, we’ll explore what cash advances are and how they work with DBS Cashline and credit cards.
What Is a Cash Advance?
A cash advance is a short-term loan that is taken against a line of credit, often with a high-interest rate and fees. Cash advances are typically used for emergency situations where cash is needed immediately. When you take out a cash advance, you are essentially borrowing money against your credit card or line of credit.
DBS Cashline and Credit Cards
DBS offers cash advances through their Cashline and credit cards. With Cashline, you can withdraw cash from your line of credit through an ATM or over the counter at a DBS branch. With credit cards, you can withdraw cash from an ATM.
When you take out a cash advance with DBS, there are fees and charges to consider. For each cash advance transaction, there is a fee of 8% or $15, whichever is greater. 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 note that there is a cash advance limit with DBS credit cards, which is capped at $5,000. The maximum withdrawal amount from a DBS/POSB ATM is $3,000 per day.
In summary, cash advances can be a quick solution for those in need of money. However, it’s important to understand the fees and charges associated with cash advances before taking one out. With DBS Cashline and credit cards, you can withdraw cash from an ATM or over the counter at a DBS branch, but be aware of the fees and charges that come with it.
Fees and Interest Rates
If you are planning to withdraw cash using your DBS credit card, it is important to understand the fees and interest rates associated with cash advances.
Cash Advance Fee
DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction. This fee is levied for each amount withdrawn, and it is important to note that this fee is in addition to the finance charge imposed on cash advances.
Prevailing Interest Rate
The prevailing interest rate for cash advances with DBS Singapore is 28.5% p.a. on the amount withdrawn. This interest rate is chargeable on a daily basis from the withdrawal date until full payment is received.
Finance Charges on Daily Basis
In addition to the cash advance fee and the prevailing interest rate, a finance charge is also imposed on cash advances. The finance charge is calculated based on an effective interest rate of 28% p.a. (subject to compounding if the charges are not repaid in full) on the amount withdrawn. This finance charge is chargeable on a daily basis from the date of withdrawal until receipt of full payment.
It is important to note that the finance charge is imposed on a daily basis, which means that the longer you take to repay the cash advance, the more interest you will end up paying. Therefore, it is recommended that you only use cash advances as a last resort and try to repay the amount as soon as possible to avoid accumulating high fees and interest charges.
Overall, it is important to be aware of the fees and interest rates associated with cash advances before deciding to withdraw cash using your DBS credit card. By understanding these charges, you can make an informed decision and avoid accumulating unnecessary debt.
Application and Approval Process
If you need cash urgently, you can apply for a cash advance with DBS Singapore. The application process is simple and straightforward. Here’s what you need to know:
How to Apply for a Cash Advance
To apply for a cash advance, you need to have a DBS credit card and be registered for DBS Internet Banking. Here are the steps to follow:
- Log in to your DBS Internet Banking account.
- Click on “Cards” and select your credit card.
- Click on “Cash Advance” and select the amount you need.
- Confirm the transaction and wait for approval.
You can also apply for a cash advance by calling DBS customer service or visiting a DBS branch. However, applying online is the fastest and most convenient way.
Approval-In-Principle
Once you’ve submitted your cash advance application, DBS will review your request and give you an approval-in-principle. This means that DBS has approved your request and will process the cash advance as soon as possible.
To get an approval-in-principle, you need to provide your NRIC or passport number. DBS will also check your credit history and assess your ability to repay the cash advance.
If you have a good credit score and a stable income, you are more likely to get an approval-in-principle. However, if you have a poor credit score or a high debt-to-income ratio, your application may be rejected.
In conclusion, applying for a cash advance with DBS Singapore is a quick and easy way to get cash when you need it. Just make sure you have a DBS credit card and are registered for DBS Internet Banking.
Repayment and Charges
When it comes to DBS cash advance charges in Singapore, it’s important to understand the repayment terms and charges involved.
Repayment Terms
DBS requires full payment of the cash advance amount, including all fees and charges, by the due date indicated on your statement. If you cannot make full payment, you must make the minimum monthly payment as stated on your statement.
Late Payment and Overlimit Charges
If you fail to make your minimum monthly payment by the due date, you will be charged a late payment fee of $100. In addition, if you exceed your credit limit, you will be charged an overlimit fee of $40.
It’s important to note that if you are overseas and unable to make your payment on time, you may be subject to additional charges such as currency conversion fees and foreign transaction fees.
To avoid these charges, it’s best to make your payments on time and in full. If you are unable to do so, contact DBS to discuss your options and avoid further fees and charges.
Tips and Best Practices
Avoiding High Charges
When it comes to cash advances, it’s important to remember that they come with high charges. To avoid these charges, you should try to avoid using cash advances as much as possible. Instead, you can consider other options like using your credit card for purchases or taking out a personal loan.
If you do need to use a cash advance, make sure to pay it back as soon as possible to avoid accruing unnecessary interest charges. You should also try to pay off the full amount of the cash advance as soon as possible to avoid paying the minimum finance charge.
Managing Your Cash Advances
If you do need to use a cash advance, there are a few things you can do to manage it effectively. First, make sure to keep track of your interest-free period. This is the amount of time you have before interest starts accruing on your cash advance. You should aim to pay off the cash advance before the interest-free period ends to avoid paying additional charges.
Another way to manage your cash advances is to keep track of your credit score. Your credit score can have an impact on the interest rates and fees you are charged for cash advances. By maintaining a good credit score, you can potentially save money on cash advance charges.
Finally, it’s important to budget effectively when using cash advances. Make sure to only borrow what you can afford to pay back and to include the cash advance repayment in your budget. This will help you avoid falling into debt and accruing unnecessary charges.
Remember that cash advances should only be used as a last resort and should be paid back as soon as possible to avoid high charges. By following these tips and best practices, you can effectively manage your cash advances and avoid unnecessary fees and charges.
Frequently Asked Questions
What are the fees for withdrawing cash using a DBS credit card?
If you withdraw cash using your DBS credit card, you will be charged a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of £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.
Can the cash advance fee for DBS cards be waived?
No, the cash advance fee for DBS cards cannot be waived. It is a standard fee that applies to all cash advances made using a DBS credit card.
How can I calculate the charges for a cash advance with my DBS card?
To calculate the charges for a cash advance with your DBS card, you need to take into account the cash advance fee (8% of the amount withdrawn, subject to a minimum of £15) and the finance charge (28.5% p.a. on the amount withdrawn). You can use the DBS website or mobile app to check your current balance and see how much you owe.
What’s the interest rate for a cash advance on a DBS credit card?
The interest rate for a cash advance on a DBS credit card is 28.5% p.a. on the amount withdrawn. This interest rate is chargeable on a daily basis from the withdrawal date until full payment is received.
Is there a limit to how much cash I can advance with my DBS credit card?
Yes, there is a limit to how much cash you can advance with your DBS credit card. The cash advance limit is usually a percentage of your credit limit, and it varies depending on the card you have. You can check your cash advance limit by logging into your DBS account online or through the mobile app.
Are there any ways to avoid transaction fees on cash advances with DBS?
No, there are no ways to avoid transaction fees on cash advances with DBS. However, you can avoid the finance charges by paying off your cash advance balance in full as soon as possible. It’s important to keep in mind that cash advances should only be used as a last resort, as they are generally more expensive than other forms of credit.