DBS/POSB credit cardmembers can make use of the bank’s instalment plans when they make big-ticket purchases. It eases the burden that might have occurred if you have had to pay the entire transaction amount in one go. With the plans offered by DBS, pay smaller amounts every month at no interest for certain tenures.
There are three primary plans available for DBS credit cardholders. The key features of these plans are:
When you make a purchase through an instalment plan, the total amount is split over the chosen duration. Say you bought a washing machine worth S$3,000 using the My Preferred Payment Plan, and chose a repayment tenure of 6 months. There’ll be a processing fee of 3%, which is equal to S$90. So the amount you’d have to pay every month would be: S$3,090 ÷ 6 = S$515. The amount repayable will be mentioned in your credit card bill.
With certain types of payments, such as the income tax payment, you could earn DBS Points even if you use an instalment plan. But generally, you don’t earn any points or cashback when you use these plans.
An instalment purchase depends on your credit availability. The entire sum of the transaction is deducted from your credit limit when a purchase is made. If there isn’t enough credit availability on your card, then the bank can reject the IPP application, or charge you an over-limit fee. As you make repayments every month, the credit limit is restored to the tune of the paid amount.
Going back to the previous example, if your credit availability is S$5,000 when you purchase the washing machine, S$3,000 will be deducted from the card, leaving you with S$2,000. Each month, when you pay back S$500, the limit of the card increases by that amount, so that after the first payment your limit will stand at S$2,500.
If you do not pay the instalment amount on a monthly basis, you will be charged the retail or penal interest rate as applicable. If you terminate the instalment plan or cancel your card, you will have to immediately pay back any outstanding sum.
The interest rates and processing fees for various plans are illustrated in the tables below:
DBS My Preferred Payment Plan
|3 months||3%||18.18% p.a.|
|6 months||3%||10.43% p.a.|
|12 months||5%||9.50% p.a.|
|18 months||6%||7.86% p.a.|
|24 months||6%||5.98% p.a.|
|12 months||3%||5.63% p.a.|
The application process for different plans are listed below:
My Preferred Payment Plan:
Directly by asking the merchant for the plan before you make a purchase.