Cashback debit cards

What is a cashback rewards programme?

A cashback or rebate reward programme is an incentive that pays back a percentage of the amount spent to the cardholder. Providers often offer cashback programmes to incentivise their customers to spend on their card.

How do I get cashback from my debit card in Singapore?

When you open a transaction account with a Singapore bank or financial institution, you’ll typically be issued a debit card so that you can withdraw funds or make cashless purchases. Depending on the provider, the debit card may be linked to Mastercard, Visa or other networks.

Your debit card may also be linked to a cashback programme – allowing you to earn back a portion of your eligible card spending, which is usually credited directly into your account the next month. For example, you need to use your POSB PAssion debit card at Giant, Cold Storage or Guardian stores to earn a 4% cashback on the transaction.

Bank accounts that offer cashback with debit card spending

Here are some of the cashback debit cards available in Singapore:

Note: Information provided is accurate at the time of writing (15 November 2020)

How do I compare debit cards that offer cashback?

• Fees. Check to see if you’ll need to pay any annual fees for the use of your cashback debit card.
• Required criteria. You may need to transact a minimum amount to your card, spend at a specific merchant or avoid withdrawing over a certain sum each month to be eligible for cashback.
• Spend categories. Banks may offer cashback for different categories, such as online shopping, grocery or dining spend. So make sure to apply for one with rewards that suit your spending habits.
• Cashback rates. Pay attention to the cashback rates between different cards and find one that offers decent rebates for your expenses.
• Earn cap. Most debit cards impose a limit to the maximum cashback you’re allowed to earn per month, so make sure to find one that offers a higher earn cap.
• Daily limits. Look closely to ensure that you’re not limited in how much you can purchase daily using your cashback debit card.

Compare cashback debit cards

Benefits of cashback debit cards

• Typically fee-free. Unlike cashback credit cards, cashback debit cards generally don’t come with any annual fees.
• Credit rating doesn’t matter. Unlike a credit card, you don’t have to worry about your debit card application getting rejected due to your credit history.
• No risk of debt. With debit cards, any transaction you make will be withdrawn directly from your available funds. This way, you won’t need to worry about overspending and accumulating any debt when you make purchases with a cashback debit card.
• Earn cashback. Your everyday shopping expenditures may accumulate cashback, allowing you to save as you spend.

Are there any caveats to look out for?

Earning part of your spending back in cash does sound like an enticing offer, but keep a look out for the following:

• Required criteria. Most cards will require you to fulfill specific criteria such as meeting a minimum spend or make a certain number of card transactions to be eligible for cashback.
• Maximum earn cap. Cashback programmes usually limit the amount of cashback you can earn in a month. For example, you can only earn a maximum of $20 per month in cashback on the DBS Visa debit card.

Frequently asked questions

• What the other types of rewards offered by cashback debit card?

  The exact rewards will depend on the bank with which you open the transaction account. Some of the additional benefits you can expect are exclusive perks at partner merchants, fuel discounts, complimentary rewards memberships, fee-free overseas cash withdrawals and more.

  Do note that some of the cashback debit card offers may be time-limited and subject to change at the bank’s discretion.

  Rewards debit cards

• Should I apply for a cashback debit or credit card?

  Credit cards often offer a host of benefits more than debit card, so if you’re looking to make the most out of your purchases, you may want to apply for a cashback credit card instead. However, do understand that if you’re unable to pay your credit card bills on time, you’d incur a high interest rate on your unpaid purchases and this may snowball into a large debt.

  So make sure to assess your financial habits before deciding if a credit or debit card works better for you.

• What reward type is best for me?

  Points are typically more beneficial for frequent flyers whereas cashback offers tend to be more beneficial for those who don’t travel much. Many frequent flyer programs let you redeem points from a partner airline. Discounts and prizes are an added bonus and can suit any type of rewards recipient.