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Reward Points Credit Cards Flexibility
While often seen as the poorer cousins of Cashback
credit cards, Reward
points credit cards are actually much more flexible than their
well-publicised peers. Reward points can be used to redeem cash
credit, air miles or vouchers from various merchants. Reward
points credit cards also usually do not have any monthly minimum
spend and a pretty high or no limit to the number of points earn.
Credit Cards Reward Points Redemption Options
The best way to utilise Reward points is to redeem them for air
miles, followed by vouchers if you intend to shop at the specific
merchants that link up with the Reward programme. The worst way
to utilise Reward points is to redeem them for cash credit unless
your credit card allows you to redeem cash credit at a better rate
commonly seen among higher-end cards.
With redemption
rates for air miles to be more or less the same (2.5 reward
points for 1 air mile or other equivalent ratio depending on earn
rate) and redemption rates for merchant vouchers not a fair comparison
considering the large number of merchants around, one can safely
say that redemption rates for cash credit is the best way to compare
Reward points by the various card-issuers.
Singapore Credit Cards Reward Points Redemption Rates Comparison
Table
| Credit Card Issuer |
Default Earn Rate /
Redemption Rates /
Expiry |
Cashback Rate |
| Amex
Credit Cards |
- 2 Membership Reward point for every $1.60 spent
- 2,100 Membership Reward points for $10
Credit
- No expiry |
0.60% Cashback |
| Maybank
Credit Cards |
- 1 TREATS point for every $1 spent
- 16,000 TREATS points for $50 Credit
- 1 year from earned quarter. Some cards with no expiry.
|
0.313% Cashback |
| StanChart
Credit Cards |
- 1 Reward point for every $1 spent
- 32,000 Reward points for $100 Credit
- 36 months from earned month |
0.313% Cashback |
| HSBC
Credit Cards |
- 1 Reward point for every $1 spent
- 20,000 Reward points for $50 Credit
- 37 months from earned month |
0.25% Cashback |
| Citibank
Credit Cards |
- 1 Citi$ for every $1 spent
- 4,200 Citi$ for $10 Credit
- 5 years from card account creation. Some cards with 1 year
expiry or no expiry. |
0.238% Cashback |
| UOB
Credit Cards |
- 1 UNI$ for every $5 spent
- 2,000 UNI$ for $20 Credit
- 2 years from earned quarter |
0.20% Cashback |
| DBS
Credit Cards |
- 1 DBS Point for every $5 spent
- 1,200 DBS Points for $10 Credit
- 1 year from earned quarter |
0.167% Cashback |
| OCBC
Credit Cards |
- 1 OCBC$ for every $1 spent
- Not Redeemable for Credit
- 2 years from earned month |
Not Applicable |
Low Redemption Rates for Cash Credit
The redemption rates for cash credit and hence cashback rates seemed
pathetically low in the comparison table above which makes you wonder
if there is any point in doing the comparison at all. However do
note that the default earn rates in the table above are for the
average credit cards (for eg. Classic cards) and it is perfectly
possible to find higher end cards that earn 10 times or even 20
times the default earn rate and hence cashback rate.
Some notable cards include Citibank
Reward Card which awards 10X Citi$ (2.38% cashback) for all
shopping, American Express
Platinum Card which awards 10X Membership Reward points (3%
cashback) at Platinum EXTRA Partners, OCBC
Titanium Reward Card which awards 10X OCBC$ (2.78% cashback,
Titanium card exclusive) for shopping and mobile payments and the
UOB Visa Signature
Card which awards 10X UNI$ (5% cashback) for overseas and online
transactions in foreign currencies, petrol and Visa payWave. Do
check out Reward
points credit cards for other cards with superior Reward points
earn rate.
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Reviews or Comments (1)
The calculation is wrong for AMEX. At 2 MR per $1.60, the cashback percentage should be 0.6%.
Thank you for spotting the error. We have since rectified it.