I am a fresh grad. Which DBS credit card for my multiplier account should I sign up for if I spend less than $500 monthly? - Seedly
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ValueChampion

Anonymous

Asked 4w ago

I am a fresh grad. Which DBS credit card for my multiplier account should I sign up for if I spend less than $500 monthly?

Hi I’m a fresh graduate looking to sign up a DBS credit card for my multiplier account. Given that I may spend less than $500 monthly using credit card, which is the most recommended card to sign up for ? I’m looking at the DBS Altitude Card VS DBS Everyday card. With respect to the Altitude card, will the points expire? Came across some articles saying that it will and some say it won’t. Thank you!

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Hi anon,

DBS points earned on the Altitude card do not expire. It's stated on their website: https://www.dbs.com.sg/personal/cards/credit-cards/dbs-altitude-cards

There is also no transaction threshold to cross for the credit card usage as long as your total transactions in all eligbile categories cross $2000 a month. That could be achieve by your salary crediting alone.

Thus you need to ask yourself if you prefer to go with cashback or miles. Cashack is for instant rewards, and miles are for aspirational rewards. If you use cashback, the Everyday card should be quite decent. If not, the Altitude is a pretty decent miles card. You may read up more on the milelion website for more details on the card. I am not a cashback person, so I'm unable to comment on the Everyday card.

Remember, you should spend because you need to get something, and not because you want to earn the cashback or miles. No point buying something you don't need, in order to jump into a higher 'tier' of bonus interest.

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ValueChampion
ValueChampion
Level 2. Rookie
Updated 4w ago

Hello! If you are spending about S$500 per month, then most credit cards might not be great for you. Often, their annual fees will more than offset the value of cashback or miles you will be earning. For example, DBS Altitude will earn about 1.2 miles per S$1, which adds up to 7,200 miles in a year. This will be worth roughly S$90 when you redeem it for an economy class flight. Meanwhile, you have to pay S$192.6 of annual fee since you won't qualify for their annual fee waiver. Math will be largely similar for most other cards, since the best/most popular cards typically require you to spend at least about S$1,000-2,000 per month to get maximum value.

In this case, you might want to consider Maybank Platinum card or cards from CIMB instead. Maybank Platinum provides S$30 quarterly cashback if you spend S$300 per month, with no annual fee for 3 years, while CIMB cards have no annual fee whatsoever. These banks also have their own savings accounts. Granted, the interest rate won't be as good as DBS Multiplier, but they both have decent alternatives like Maybank iSAVvy & iSAVvy Plus and CIMB FastSaver. Or you could still get DBS Multipllier for decent rates, depending on how much balance you have.​​​

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It depends on your preference - cashback vs miles.

Assuming that you are holding onto a DBS Altitude Visa card, here is the breakdown on how the points work:

For every $5 spent on online flight and hotel, you get 7.5 DBS points.

For every $5 spent on all overseas spend (in foreign currency), you get 5 DBS points.

For every $5 spent in local currency, you earn 3 DBS points.

Additionally, do note that the points calculated on each transaction is rounded down to the nearest whole number, e.g. $5.50 spent in local currency will yield 3 DBS points instead of 3.3 DBS points.

Furthermore, your DBS points will expire one year from the quarterly period in which they were earned, e.g. DBS points earned in Q1 2019 (1 Jan 2019 to 31 Mar 2019) will expire on 31 Mar 2020.

Now, in order to convert your DBS points to miles, the conversion rate varies across airlines. Let's use KrisFlyer for example, the conversion rate is 1 DBS point to 2 miles. Accordingly, for $5 of local spend, you will get 3 DBS points, which is equivalent to 6 miles. This is effectively 1.2 miles per dollar as advertised.

Finally, do note that there is a admin fee of $26.75 for the transfer of points to airline miles.

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