When your personal loan debt is piling up and you don’t think you can pay the interest for much longer, you need to consider transferring your credit card or credit line balance to another bank under the balance transfer facility. Balance transfer plan is offered by most leading banks, and it allows you to pay a very low interest for the first 6 to 12 months, which will help cut down the rising interest charges. Balance transfer applies to both line of credit and credit cards.
POSB, one of Singapore’s oldest banks, also offers a balance transfer plan for your cards or line of credit. POSB promises savings, flexible repayment and better financial control when you transfer your existing card or credit line balance from another bank to its products. POSB’s line of credit is known as Cashline.
The table below shows the interest rates for Cashline balance transfer plans:
|6-month tenure||12-month tenure|
|Interest Rate (p.a.)||0%||0%|
|Effective Interest Rate (p.a.) for POSB Cashline online applications||5.27%||5.06%|
|Effective Interest Rate (p.a.) for POSB Cashline offline applications||7.52%||7.12%|
|Processing Fee for online applications||2.5%||4.5%|
|Processing Fee for offline applications||3.58%||6.38%|
POSB has two promotional offers for online applicants of balance transfer. You can get the following rewards on applications until 31 December 2017:
To get the NTUC vouchers, you need to apply for a 12-month tenure and choose to transfer both your line of credit and credit card from another bank to POSB. The application should be done online – either on the same day or combined in a single application. The vouchers are awarded based on your approved balance transfer amount as per the table below:
|Loan amount||Voucher value|
|S$8,000 to less than S$15,000||S$60|
|S$15,000 to less than S$25,000||S$120|
|S$25,000 or more||S$200|
To be eligible for POSB Balance Transfer, you need to meet the following parameters:
No documents are required if you already have a Cashline or credit card account with DBS or POSB. If not, you need to submit the following documents:
The easiest way to apply for POSB Balance Transfer is to do it online. You can visit the POSB website and click on the ‘Apply now’ button at the bottom of the page. You could also visit your nearest POSB or DBS branch to apply.
Q. Can I transfer the balance of more than one credit line to POSB?
A. Yes. As long as the balance on the multiple credit lines you want to transfer is lower than your credit limit or your four months’ salary, you can transfer more than one account’s balance to POSB.
Q. Can I get a 3-month balance transfer tenure?
A. No. POSB Balance Transfer starts at 6 months.
Q. Do I have to pay the processing fee separately to POSB?
A. No. The processing fee will be debited from the Cashline account in your name.
Q. How do I save using POSB Balance Transfer?
A. Your interest payments during the period of balance transfer would be lower than what you are paying on your current line of credit. POSB Balance Transfer gives you an EIR of 5.06% to 7.61% p.a., but line of credit interest rates range between 19% and 30% p.a. generally.
Q. Can I earn reward points or cash rebate on balance transfers?
A. No. There will be no points or rewards for balance transfers.