DBS & POSB Balance Transfer Review: Should You Apply?
DBS & POSB Balance Transfer Review: Should You Apply?
ValueChampion Rating 
Pros
- Great 12 month interest free balance transfers
Cons
- Not the lowest fees
- Not the cheapest short-term balance transfer
DBS and POSB do not offer the lowest fees for balance transfers (5.06% - 5.34%) in Singapore. However, they are worth considering if you are not approved for another bank's balance transfer loans.
| Summary of DBS & POSB's Balance Transfers |
|---|
| Interest-free periods of 3, 6 & 12 months |
| Effective interest rates: 5.06% - 5.34% |
| Minimum monthly payment: 2.5% - 3% of outstanding balance, or $50, whichever is greater |
| Transfer amount: S$500 - 93% of credit limit |
| Promotions:
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Table of Contents
What Makes DBS & POSB Stand Out to Borrowers
DBS and POSB charge higher fees than their competitors, and are thus better viewed as a backup option for your balance transfer needs. The banks' best rates are for their 12-month interest free transfers. Therefore, balance transfers from DBS and POSB are only decent options for those borrowers that seek a 12-month interest-free period and are unable to obtain a better rate elsewhere.
Summary of DBS & POSB's Balance Transfer Costs
| Interest-Free Period | Applied Interest Rate | Administration Fee | EIR |
|---|---|---|---|
| 3 Months | 0% | 1.5% | 6.12%-6.15% |
| 6 Months | 0% | 2.5% | 5.27%-5.34% |
| 12 Months | 0% | 4.5% | 5.06%-5.20% |
Who Can Apply: Eligibility Criteria
- Processing Fee
- 2.5%
- Maximum Principal
- S$200,000 or 93% of credit line
- Interest Free Period
- 6 months
To be eligible for DBS or POSB's balance transfer, borrowers must have credit card or Cashline accounts with one of the banks. The banks also require that borrowers apply for balance transfers of at least S$500.
Other Charges & Fees
In addition to their processing fees, DBS and POSB charge a late payment fee, although they do not specify the amount on their websites. The banks also charge prevailing interest rates of 20.5% to 29.8% for Cashline balance transfers and 25.9% for credit card balance transfers after the interest-free period. We strongly recommend that borrowers make timely payments and repay as much of their balance transfer as possible by the end of the interest-free period in order to minimise the total cost of their balance transfer.
How to Apply for DBS/POSB's Funds Transfer
To apply for a balance transfer from DBS or POSB, applicants must have a credit card or Cashline account with either bank. Applicants can apply online using their iBanking log-in information or their card and PIN numbers and are not require to produce any documents for the application.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.