HSBC recently relaunched their HSBC Advance Card and just like you, we are also excited to see if it a real catch or just ‘meh’.
In a nutshell, this credit card is no longer a 10X rewards card, but now offers cashback across all retail categories subject to a cashback cap. If you’re a HSBC Advance Account holder, you get 1% more cashback and a higher cap.
We’re done with the preview, so let’s catch the premiere now, shall we?
What is the HSBC Advance Card?
Right now, the HSBC Advance Card is primarily a cashback credit card that offers cashback on all your purchases, regardless of which category you spend in. The cashback you get will depend on how much you spend and there’s no minimum spend requirement! Let’s see how you can earn cashback on this card:
|Eligible Spend per month||If you have an Advance Banking Relationship with HSBC||If you don’t have an Advance Banking Relationship with HSBC|
|Above S$2,000||3.5% cashback||2.5% cashback|
|S$2,000 and below||2.5% cashback||1.5% cashback|
|Cashback cap per month||S$125||S$70|
Did you ‘catch’ that?
So, it’s pretty straightforward, you will earn cashback irrespective of how little you spend in a month, but there’s a cap of up to S$125 each month. If you want to enjoy the maximum cashback and S$125 cap, you need open an Advance Banking account with the bank.
And, what is this Advance Banking we’re talking about? It’s kind of like having a preferred banking relationship with HSBC, where they will provide you with preferential rewards, expatriate banking services and financial advice from their Advance Managers. There are several ways to qualify for an Advance banking account, but the simplest way to apply would probably be to credit your salary or have a recurring deposit of at least S$3,500 each month, and to get a HSBC credit card.
As an Advance Banking customer, you will also enjoy perpetual annual fee waiver on this credit card!
Is the cashback too good to be true?
Fortunately for us, it’s not too good to be true. It is very real. The bank actually means cashback on “everything” that is retail. So here’s what you will earn cashback on with this card:
- ALL retail purchases* – this includes purchases made locally, overseas and online.
- Recurring bill payments.
So, whether you spend S$5 or S$5,000, you’ll earn cashback on your trip to the grocery store, the chilli crab meal at Jumbo, your new wardrobe from Zalora and so on.
*some exclusions apply
Clash of cards
|Credit Cards/Criteria||HSBC Advance Card||AMEX True Cashback Card||Standard Chartered Unlimited Cashback Card|
|Cashback Category||All retail transactions||All retail transactions||All retail transactions|
|Cashback||Up to 3.5%||1.5%||1.5%|
|Minimum spend||No minimum spend||No minimum spend||No minimum spend|
|Cap||Up to S$125||No cap||No cap|
||S$171.20 (1 year annual fee waiver)||S$192.60 (2 years annual fee waiver)|
If you boil the comparison down to how much cashback you get, HSBC Advance pretty much knocks the competitors out of the park 2-fold. It’s a ratio of 3.5 : 1.5. But, it is also the only card on our list that has a cap on how much cashback you can earn each month. With AMEX and Standard Chartered cashback cards, you earn as you spend but with HSBC, you earn up to a certain amount no matter how much you spend.
But, does the higher cashback offered even out the cap on your spends?
Let’s find out:
|Credit Cards/Spends||HSBC Advance||AMEX True Cashback||Standard Chartered Unlimited Cashback|
|Insurance Premium Payment||S$300||S$300||Not eligible|
|Other retail spends||S$450||S$450||S$750|
|Cashback earned||Advance Customers – S$80.50
Non-Advance Customers – S$57.50
Looks like HSBC Advance has an upper hand even with a cap.The beauty of cashback cards with no minimum spend is that it’s great for people who cannot consistently spend a lot in single category each month. Why do I say this? Because if you consistently spend several hundred dollars every month on things like dining, online shopping or groceries, then you could be better off using cards like the POSB Everyday Card (Dining), BOC Family Card (Online Shopping), or the Citi Cash Back Card (Groceries).
With the HSBC Advance Card, there’s no minimum spend to worry about, there’s a sizeable amount you can spend (up to S$2,800 for non-Advance banking customers) before the cap kicks in. That’s pretty good!
And speaking of sizeable amounts, some of us prefer using interest-free instalment payment plans to help manage our cash flow. Just remember that these expenses are not eligible for cashback on any credit card, HSBC Advance included.
How we feel about this card
All-in-all, this card for is definitely a Yay for us! Yes, the card comes with a cap, but it offers you the opportunity to earn cashback at a higher rate on ALL purchases compared to most other credit cards out there under this category, even with a cap.
If you’re a moderate spender and don’t splurge on your credit card, the cap makes no difference to you. Unless you’re willing to go all out with no budget and spend as you please, in that case, use the Advance Card first, then swap it out for a different card.
Check your eligibility and apply for the HSBC Advance Credit Card here.