SINGAPORE — Effective this coming Wednesday (Jan 4, 2023), HSBC will raise its interest rate on outstanding credit card balances from 25.9 per cent yearly by one per cent, for a total of 26.9 per cent per annum. Aside from this, late payment fees will rise from S$55 to S$100, and administrative fees for foreign currency card transactions will go up from 1.8 per cent to 2.25 per cent. The bank published an announcement concerning HSBC’s updates on its credit card fees and charges here.
Maybank’s late payment charges, originally 5 per cent of the minimum payment due or S$80, whichever is higher, went up to 5% of the minimum payment due or S$100, whichever is higher. And its cash advance fee went from 5 per cent or a minimum of S$15, whichever is higher, to 6 per cent or a minimum of S$15, whichever is higher. Maybank’s changes are explained here.
Maybank already imposed similar increases on its fees and charges earlier this year. As of Oct 20, the prevailing interest rate (Including cash advance) went up from 25.9 to 26.9 per cent.
CNA spoke to various other banks in Singapore regarding changes to their fees and charges, with DBS and UOB saying that credit card holders will be told in advance of any changes in rates and fees.
As for OCBC, Mr Kenneth Tan, the head of portfolio and lending management, told CNA, “We encourage customers to pay their credit card bills in full to avoid incurring additional charges.”
These fees and charges undergo regular evaluation, the banks told CNA.
READ RELATED: Want to be smart with your money in the coming year? Check out the Complete Guide to Priority Banking in Singapore 2023 here. /TISG