So you’ve heard cashback cards offer the best savings, and you want to switch. Or maybe you already have a cashback card, and you’re wondering why the only thing you’re saving up is added grief. Well, there’s a trick to it, because the benefits of a cashback card are more fragile than an alcoholic’s resolve. In this article, I look at how you can maximize your card’s savings, without having to get your CPA:
What’s a Cashback Card?
Cashback cards offer a cash rebate, which varies based on the amount you spend. So a cashback of 5% means you get back 5% of the amount charged to the card. This usually comes as a cheque, issued after each billing cycle.
Recent product launches have signalled a huge shift in favour of cashback rebates when consumers choose what credit card benefits they want. This is reflected in a whole glut of new credit cards, such as the American Express True Cashback Card, the ANZ Optimum Card andOCBC’s 365 Card. Of course, the oldies such as the Citi DIVIDEND Card are still holding strong amidst this heavy competition.
Cashback has an advantage over discounts, because discounts tend to go unused. For example, there’s no point getting 10% off at a restaurant you’ll never visit. Cashback just straight up puts money in your pocket, instead of plugging you with offers you don’t need.
“Sorry, your card discount only applies on leap years, the Pope’s birthday, and when we feel like it.”
But you have to maximize it by:
Knowing the cashback limit
Knowing the terms and conditions of the cashback
Paying the balance in full
Being aware of introductory rates
Matching your spending habits
1. Knowing the Cashback Limit
In some cases, there’s a limit to the size of the rebate. The UOB ONE card, for example, has a maximum rebate of $600 a year. If you know your cashback has reached this amount, it’s time to switch to another card.
Calculate how much you can charge to the card before you hit the maximum rebate. Then get a little sticker or something, write down the amount, and paste it on the front of the card. Apart from reminding you when to switch, it’ll also remind you that you’re overspending. Because if you hit the maximum rebate, you probably are.
“There’s a cashback limit. And you just used it paying postage for your query letter.”
2. Knowing the Terms and Conditions of the Cashback
If you’re unlucky, you’ll get one of those half-assed rebate cards with more terms and conditions than the Versailles treaty. It’s easy to fall for this, because brochures tend to only advertise thehighest possible rebate.
The OCBC Robinson’s card, for example, only gives rebates at Robinson’s outlets. But that’s to be expected, being that it is called the Robinson’s card. Other cards may not be as honest or obvious. You don’t want to charge $500 of petrol to a card, then find out it’s 5% cashback for shopping and 0.5% cashback for petrol.
You should also check for minimum spending requirements. The UOB One card, for example, only starts giving cashback after you charge more than $300 to it. So don’t want to use it for a handful of $50 transactions, and get nothing back at the end of the month. Some other companies have taken advantage of this, with cards like the Amex True Cashback Card offering an unlimited cashback of 1.5% without requiring a minimum spend.
“Before I send you the terms and conditions, do you have any history of back problems?”
3. Paying the Balance in Full
Some card companies suggest you let the cashback pay off the card’s interest. That’s possible, but it’s not recommended. Remember: it’s better to collect the interest than to try and offset it.
A cashback card rewards savers. If you’re actively blowing money on Martinis or the latest tablets, you’ll get higher average savings from a card that caters to that. It’s easy to find a card with 10-15% discounts at Courts or your favourite nightspot; it’s hard to find cashback rebates that high.
So if you’re using a cashback card, commit yourself to maximizing the savings. Pay off the balance in full and collect on the interest. If you intend to actively spend, and you know whereyou’re spending, then get a card with the appropriate discounts instead.
“…and the last repayment is a human sacrifice. Pretty cheap, this bank.”
4. Be Aware of Introductory Rates
Cashback cards sometimes come with introductory rates. Most often, this is 0% interest, or bonus $100 cashback. Some cards like the Amex True Cashback offer 5% cashback for a limited period of time and for a limited amount. As with point 2, don’t take anything on the brochure for granted.
Banks seldom advertise that introductory rates are temporary. In most cases, the huge rebates and 0% interest disappear after three months. Nor should you expect a warning from the bank; they’re just waiting for you to slip up, and they’ll implement new terms without so much as an e-mail. Think of bankers as muggers with really nice suits.
Your best bet is to grill the bank’s service rep on the details. If you’re really worried, hold the conversation with the rep via e-mail. This will give you evidence in case you’re mislead.
“Sure it’s interest free. It comes with free 24% interest.”
5. Matching Your Spending Habits
As I mentioned in point 2, some cards offer different rebates for different purchases. Don’t pick a cashback card just because it gives a flat rebate on everything. These cards are versatile, but the rebate tends to be lower.
For example, the Amex True Cashback card gives the same rebate on every purchase, but the rebate is only 1.5% throughout. The OCBC Robinson’s card, on the other hand, only gives rebates at Robinson’s. But the rebate is up to 10%, right off the bat. Some new cards, such as the ANZ Optimum Card allow you to choose which category of spending you would like to enjoy the maximum cashback of 5% for, and then provide a separate cashback rate for other spending categories.
If you do most of your shopping at Robinson’s, then the Robinson’s card is the better deal. If you’re not specific in where you shop, then getting a more generic cashback card is better. Match the card to your spending habits, and don’t just pick the simplest one.
“Wow, they know my shopping habits. The application form came with a bankruptcy notice.”
Pasir Ris beach reopened to the public on Friday, after the quality of its water was upgraded by the National Environment Agency. The water, which previously received a 'Fair' grading, has improved to meet 'Good' standard.
SINGAPORE: Singapore is now connected to all nine ASEAN city states with the arrival of Lao Airlines from Vientiane, the 11th new city link for Changi this year.
Lao Airlines will have thrice-weekly services between Singapore and Vientiane.
And its direct service comes on the back of strong bilateral ties between the two countries.
Singapore is among Laos' top 10 foreign investors, with investments in sectors ranging from manufacturing to hospitality.
In the first nine months of this year, bilateral trade saw a substantial growth of 40 per cent year-on-year to reach about US$29 million.
Singapore and Laos have also been regular cooperation and exchange partners since Laos joined ASEAN in 1997, across areas such as education, healthcare and tourism.
In a statement, Changi Airport said the number of passengers travelling between the two countries has grown steadily over the last five years.
During this period, Singapore visitor arrivals into Laos grew about 8 per cent annually to about 6,100 in 2010, while the number of visitors from Laos increased by some 25 per cent every year to about 5,200 last year.
Depending on who you ask, Singapore is either one of the most innovative countries in the world or underperforming in that aspect.
The 2011 Global Competitiveness Reportby the World Economic Forum clearly thinks Singapore falls in the latter category. While it scores highly for lack of corruption, government efficiency (1st for both), and infrastructure (3rd), it lags behind for adoption of latest technologies (10th), measures that support sophistication of companies (15th), and capacity for innovation (22nd).
But overall, it is still the second most competitive economy in the world, behind Switzerland.
This means that while Singapore is a great place to do business, firms here have not quite caught up with the world’s best when it comes to improving their own processes and developing more innovative products. Government operations, on the other hand, have been on the cutting edge of technology, scoring second globally in government procurement of advanced technology products.
The survey gathers over 13,000 valid responses from 142 economies, for an average of 98 respondents per country, and captures the respondents’ perceptions of their countries.
These findings are somewhat in agreement with INSEAD’s own Global Innovation Index, which ranks Singapore highly for investing resources into developing innovation but penalizes it for the creation of knowledge and the production of creative goods and services.
In fact, when comparing the dividends reaped with the investment made, Singapore ranks an inefficient 94th.
Despite this blemish, there’s a lot of good news for Singapore. The Global Competitiveness Report compares the country quite favorably against other innovation-driven economies. It’s just that Singapore falls short of its own lofty standards.
But the government has only just begun to recognize the important of innovation, and they are now earnestly encouraging firms to innovate by pumping in money to support entrepreneurs and increase productivity in the workplace. Time will tell if these measures have been effective.
SINGAPORE: Singapore will soon get a taste of the culture and spirit of the 2011 Rugby World Cup hosted by New Zealand.
The Rugby Village 2011 concept will see ex-Kiwi stars such as Jonah Lomu possibly as part of the attraction.
Earlier in June, former England international Gareth Chilcott and Australia's Simon Poidevin, who played for the Wallabies in the 80s, visited Turf City in Singapore to drum up support for the upcoming Rugby World Cup Village 2011.
When completed, the village will feature live screenings of matches, where fans can gather to cheer their favourite teams, with food and beverage and entertainment thrown in.
Chilcott, who gave the Village concept the thumbs-up, thinks England can repeat their title-winning run of 2003 in Australia despite the event being staged in the Southern Hemisphere.
"England is a very good side at the moment. They have got a right mixture of older ones, some youngsters coming through (including) Ben Foden, Chris Ashton, and Ben Youngs. These young players have made Martin Jonhson (the coach) think again," he said.
However, Poidevin, said he feels New Zealand -- winners of the first edition in 1987 -- are still favourites to lift the title at home.
"New Zealand's got so much to play for, 1987 is a long time ago," Poidevin said.
"Historically, they have been the strongest rugby nation in the world, and they are playing in a country which has had a huge (earthquake) in Christchurch, so that's lots of motivation for the players."
Like Poidevin and Chilcott, more big name ex-players are being lined up for the Rugby Village.
Organisers of the Rugby Village 2011 are currently looking at securing a site for the village, which is likely to be around the Marina Bay area.
It will be able to accommodate up to 2,000 people and activities at the village will start even before the World Cup kicks off in September.
SINGAPORE: A rarely-seen type of dengue - DEN-3 - has hit the Marsiling area with more than 60 cases reported as of Friday.
The National Environment Agency (NEA) said residents may have little or no immunity against the infection, leading to quicker dengue transmission.However, it added there is no sign for alarm that this form of dengue is spreading to the rest of the island.The Marsiling area has seen two clusters of dengue transmission recently, with the first detected at Marsiling Rise on April 21.The second cluster detected on May 19 is also the largest so far this year.NEA has since stepped up control measures, including dispatching 70 officers to carry out mass operations to search and destroy potential breeding habitats.The agency has also roped in various partners, including Sembawang Town Council and the National Parks Board to get rid of larvae.A Marsiling resident told Channel NewsAsia he welcomed the increased monitoring.Property agent Allen Lee recently contracted dengue along with other members of his family.Mr Lee, his daughter as well as his domestic worker were affected for the first time."My daughter's platelets count dropped tremendously and she was feeling nauseous. She couldn't eat at all (and) was hospitalised at Mt Alvernia (while) my domestic maid was hospitalised at Tan Tock Seng CDC. "The sad part was my wife had to do all the running (around) because three of us were down," he said. NEA is also advising residents to be alert to any potential mosquito breeding areas in their homes.The agency said enforcement action will be taken against all parties found breeding the Aedes mosquitoes.Meanwhile, Mr Lee said he has also taken his own measures. "My domestic worker has been taught... how to check for breeding (in places)... like pots of plants. "I think the rest of the residents here have to be well-informed and also to do their part as a community," he said.-CNA/wk
Minister for Information, Communications and the Arts Dr Yaacob Ibrahim announced on Monday that MediaCorp's seven 'Free-to-Air' channels will be available on the Internet within the next year.
The initiative, he said, will be a good way forSingaporeans overseas to be updated on events at home through the latest local TV programmes and be entertained by other programmes that MediaCorp has rights to.
Dr Yaacob, who was speaking at the InfocommMedia Business Exchange (IMBX) opening ceremony, added that the media company will be announcing the details of this service nearer to its implementation, reported Channel News Asia.
Touching on the 3DTV trial which he said has been successful since its implementation a year ago, the country's Pay-TV operators — StarHub and SingTel, as well as Free-to-Air operator MediaCorp — are now able to transmit 3D content into homes.
SingTel's mioTV has also recently successfully screened the Barclays Premier League match between Arsenal and Manchester United in 3D-format to all its subscribers.
The Republic is also on track in its plans to go fully digital, in line with ASEAN's committed timeframe to switch off analogue TV transmission between 2015 and 2020.
Dr Yaacob said following ASEAN's adoption of the DVB-T standard for Digital Terrestrial Television,Singapore is looking into the early migration to DVB-T2, the second and latest generation of this standard.
The move will provide consumers with an enhanced viewing experiences and greater choices in TV content and services.
Dr Yaacob said the Media Development Authority (MDA) is now putting in place a nationwide trial network to determine how the new standard can be suitably adopted for Singapore's terrain.
With this network, Singapore will be among the first in the region to establish a wide-scale DVB-T2 trial infrastructure, and MDA is planning for the trial network to be installed by September 2011.
