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 Additionally, a finance charge of 28.5% p.a. is imposed on the amount withdrawn and is charged on a daily basis from the withdrawal date until full payment is received.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fee or a minimum of S$15 for each cash advance transaction, and a finance charge of 28.5% p.a. is imposed on the amount withdrawn.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 so