Update: These card features for the POSB Everyday Card are no longer available.
Cashback cards are all the rage with almost every bank offering some form of cashback or the other. These cards offer varying rates of cashback and usually try to target either specific spending categories.
One of the most common spending category is dining. Everyone knows that Singaporeans love food. Coupled with the fact that we’re such workaholics and there is so little time to cook at home, dining out inevitably forms an integral part of our lifestyle.
With dining out forming a huge portion of our monthly expenditure, it comes as no surprise that cashback cards which fail to provide a good offer on dining expenses are on the losing end.
Thankfully for us, the POSB Everyday Card has stepped up their game and recently announced a pretty interesting offer.
The new POSB Everyday Card offer: “Get up to 14% rebate on dining & everyday essentials with Singapore’s Better Rebate Card!”
Sounds good right? But just because the offer says up to 14%, does it mean that the card is suddenly worth getting? And being savvy consumers, we have to take note when the words ‘up to’ are mentioned.
Why did POSB say ‘up to’?
That’s because the cash rebate is broken down into the following components.
- For online food delivery paid using the card, you can get a cash rebate of 14%.
- However if the card is used to pay for dining expenses incurred at restaurants and cafes, the cash rebate earned on such expenses incurred on weekdays is 3% and on weekends is 9%.
That’s just the first point. Now let us take a closer look at the strings attached to this offer.
A credit card is only as good as the strings that come attached to it…
- The promotional offer is valid from 1st March 2017 to 30th September 2017 after which the offer may or may not be extended.
- The offer is open to new and existing cardholders which is an advantage.
- You need to charge at least S$600 to the card in order to receive the cash rebates. This spend criteria does not include any balance transfer amounts, cash withdrawals, bill payments, interest charges and any other fees that POSB/DBS might charge.
- The expenses charged to the supplementary card can be taken into account as well which is another added advantage.
- Finally the cashback earned on the card is capped at S$50 per month.
How does it work?
The POSB Everyday card is designed to meet the everyday expenses of the cardholder. You get decent cashback rebates on mundane yet essential categories such as petrol or recurring telco bills. Previously, the normal rate of cashback for dining expenses is 0.3%.
With the promotional offer, the cash rebates earned doesn’t automatically shoot up to 14%. The rebate earned is provided in phases. For online food orders, you can get a rebate of 0.3% credited upfront to your account while the remaining 13.7% is credited into the account within a span of 60 working days.
The same goes for weekday and weekend dining spend. You can get the normal cashback rate of 0.3% on qualifying spends. The remainder of the cash rebate, which in this case is 2.7% for weekday dining and 8.7% for weekend dining, is credited within a span of 60 working days.
How much can you save?
Consider a scenario where you spend a total of S$700 in a month towards dining. We take this number as you automatically meet the spend criteria required. Let’s assume you use this card solely for dining and nothing else.
|Spend Category||Amount||Cashback Earned|
|Base cashback (0.3%)||Bonus cashback||Total cashback|
|Online food ordering||S$200||S$0.6||S$27.4 (bonus for online food ordering is 13.7%)||S$30|
|Weekday Dining expenses||S$100||S$0.3||S$2.7(bonus for weekday dining expenses is 2.7%)||S$3|
|Weekend Dining expenses||S$400||S$1.2||S$34.8 (bonus for weekend dining expenses is 8.7%)||S$36|
|Total Cashback earned||S$50 instead of S$69 (due to monthly cap)|
The card has been designed to cater to other aspects of life and up until now, the cashback rates for dining expenses were low at 0.3%. But with the promotional offer, this has shot up to a minimum of 3% and a maximum of 14% which makes it one of the better cards for dining.
For existing POSB Everyday cardholders looking to get an edge over dining expenses, this promotional offer comes as a godsend. We’re guessing that you were finding it difficult to max out your monthly cash rebate caps with the previous categories.
If you’re a potential cardholder looking for the best cashback rates on dining, you’ll love this card if you use online food delivery services like UberEats, foodpanda or Deliveroo very often. It’s also a good card for those who dine out on weekends frequently. To fully enjoy the maximum cashback with solely weekend dining, spend S$600 a month and get S$50 in cash rebates. That’s an effective cash rebate of 8.3%.
The promotional period is valid till the end of September 2017, so get the card early and you can enjoy its dining benefits for almost 6 months.
How about other dining cards?
Other cards that offer decent cashback rates on dining are the Citi Cash Back Card, and the BOC Family Card. The OCBC 365 Card used to have an edge over the POSB Everyday card, but not anymore – at least for the next six months.