Is the HSBC Advance Credit Card the Best Cashback Card Right Now?

|Posted by | Credit Card Reviews, Credit Cards

girl showing hsbc advance credit card

The HSBC Advance Credit Card offers Singaporeans the highest potential cashback, plus a S$150 NTUC voucher sign-up bonus from SingSaver.com.sg!

Cashback credit cards offer a straightforward, immediate way for Singaporean consumers to get some savings. Depending on the type of card you are holding, you’ll save money in one of two ways.

One, you’ll get a little bit of rebate (typically 1.5%) on virtually everything you spend on. However, there’s no limit on how much rebate you can earn this way.

Or two, you’ll get higher cashback (as high as up to 8%), but only on selected categories of purchases. These cards also set a hard limit on the amount of cashback you can earn per month.

To sum up: Minor savings that you can accumulate to your heart’s content, or higher cashback rates restricted to specific categories, and with a monthly cap. Are these the only 2 choices for credit card users in Singapore?

Well, that’s the case no longer. There’s a new cashback card in town, and it offers you the best of both worlds.

Up To 3.5% Cashback On All Spends, S$125 Monthly Cap, No Min Spend

For a start, the HSBC Advance Credit Card gives you as much as 3.5% cashback, which you can freely use across all spends.

hsbc-advance-credit-cardHSBC Advance Credit Card

Three-and-a-half percent may not seem like much, but it is on par with the rebates offered by some of the leading ‘everyday savings’ cards currently on the market.

The advantage here is the flexibility you’ll enjoy – no more juggling different cards on different spends, just so you can maximise your cashback.

You can pretty much put all your spending on the HSBC Advance Credit Card, and very likely come out on top in terms of rebates earned.  

This is backed up by the card’s other winning feature – a maximum cashback cap of S$125 per month. This is, so far, the highest cashback limit on the market, which means this credit card will give you the most potential savings.

Both these main features work wonderfully together. At 3.5% cashback on all spends, you just need to charge just under S$3,600 to earn the maximum cashback of S$125.

(Just for comparison, on a card with 1.5% cashback, you’d have to spend at least S$8,333 per month to get S$125 in savings.)

Oh, there’s also no minimum spend required to earn cashback!

Highest Potential Savings, But There Are Caveats

With the high cashback and monthly cap, you’re apt to find it easier to maximise your benefits on the HSBC Advance Credit Card. However, there are 2 caveats here: To reap the maximum rewards on this card, you’ll need to spend above S$2,000 per statement month. Next, you also need to pair the card with an HSBC Advance Banking account.

Here’s how it works. The base cashback rate offered by the card is 1.5%, which rises to 2.5% if you charge more than S$2,000 per month. The monthly rebate is capped at S$70 by default.

However, if you sign up for an HSBC Advance Banking account, you’ll receive an additional 1% cashback, and raise your total monthly cashback cap to S$125.

See the following table for an illustration:

Monthly spend

Cashback

Monthly Cap

Without HSBC Advance Banking Account

S$2,000 and below 1.5% S$70
Above S$2,000 2.5%

With HSBC Advance Banking Account

S$2,000 and below 2.5% S$125
Above S$2,000 3.5%


Are The Enhanced Benefits Worth The Advance Banking Account?

You should know that the HSBC Advance Banking account is an enhanced savings account, which comes bundled with features you won’t normally find in a basic savings account. (Some of these include multi-currency deposit, and preferential rates for loans.)

As such, the service fee for maintaining your account with HSBC is higher – S$10 a month. Although, this fee is waived if you fulfil certain eligibility criteria, such as monthly salary crediting of S$3,500 and above.

Also, signing up for an HSBC Advance Banking account will get you a perpetual fee waiver on your HSBC Advance Credit Card.

So, is it worth taking on a potential monthly cost of S$10 to unlock the maximum benefits on the HSBC Advance Credit Card?

The answer is: Yes.

Quite simply, the savings you’ll generate on your credit card (both from the monthly cashback and the annual fee waiver) outstrips the monthly service fee, which you may very well not need to pay for anyway!

HSBC Advance Credit Card Eligibility Requirements

Excited about the HSBC Advance Credit Card? Before you apply, check the eligibility requirements, card fees and interest rate below.

Singaporeans/PR

Foreigners

Annual Fee

Fee Waiver

Effective Interest Rate

21 to 65 years old

S$30,000 minimum annual income

21 to 65 years old

S$40,000 minimum annual income, with valid employment pass

S$192.60 (GST included) 1 year

Perpetual waiver for Advance banking customers

25.9% per annum


SingSaver.com.sg Exclusive Offer: S$150 NTUC Vouchers

To celebrate the launch of the HSBC Advance Credit Card, we’re giving away a S$150 NTUC FairPrice voucher!

hsbc-advance-credit-cardHSBC Advance Credit Card

To claim it, simply apply for the card through SingSaver.com.sg, and charge at least S$600 within the first month.  This promotion ends on 30 June 2017, so don’t miss out.

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Alevin ChanBy Alevin Chan
A Certified Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.