Singapore POSB Bank / photo:

POSB, the first bank in Singapore to reward customers with monthly cashback for regular banking transactions

For those who have not heard about the ‘POSB Cashback Bonus’, POSB customers will need only to fulfil three or more types of regular banking transactions to earn up to SGD 130 per month via salary crediting, credit card spending, home loan instalments, insurance premiums, or investments

Singapore’s oldest and most loved bank, on 17 October 2016 announced the launch of an innovative ‘bank and earn’ program which will reward customers with cashback every month through regular banking transactions.

The ‘POSB Cashback Bonus’ program is the first of its kind in Singapore to offer customers direct monthly cashback simply by fulfilling at least three types of regular banking transactions.

This is a simple program for customers to earn cashback as the majority of POSB/DBS customers are already conducting these transactions with the bank. For example, customers will only need to conduct at least three of the following transactions every month to earn up to SGD 130 per month in cashback rewards:

  1. Credit their monthly salary (Minimum amount of SGD 2,500; cashback of 0.3%; monthly cashback cap of SGD 20)
  2. Spend on their POSB/DBS credit cards (No minimum amount required; cashback of 0.3%; monthly cashback cap of SGD 20)
  3. Pay their monthly home loan installments (No minimum amount required; cashback of 3%; monthly cashback cap of SGD 30)
  4. Pay their POSB/DBS insurance premiums (No minimum amount required; cashback of 3%; monthly cashback cap of SGD 30; insurance products should be purchased after signing up for the program)
  5. Invest through POSB/DBS (No minimum amount required; cashback of 3%; monthly cashback cap of SGD 30; investment products should be purchased after signing up for the program)

See below for two examples of how a customer can earn generous cashback rewards from regular banking transactions:

Scenario A: Early-Career Individual (monthly transactions)

  • Salary Credit: SGD 2,500 (Cashback of SGD 7.50)
  • Credit Card Spend: SGD 500 (Cashback of SGD 1.50)
  • Home Loan Installments: SGD 800 (Cashback of SGD 24)
  • Insurance: SGD 350 (Cashback of SGD 10.50)
  • Investments: SGD 200 (Cashback of SGD 6)
  • Total cashback: SGD 49.50 monthly and SGD 594 yearly

Scenario B: Mid-Career Individual (monthly transactions)

  • Salary Credit: SGD 5,000 (Cashback of SGD 15)
  • Credit Card Spend: SGD 1,000 (SGD 3)
  • Home Loan Installments: SGD 1,000 (Cashback of SG30)
  • Insurance: SGD 500 (Cashback of SGD 15)
  • Investments: SGD 1,000 (Cashback SGD 30)
  • Total cashback: SGD 93 monthly and SGD 1,116 yearly

Earlier this year, POSB conducted a survey among some 800 customers on their reward preferences based on their banking relationships. The majority of customers responded that they prefer the following features for their banking accounts:

  • Rewards structure that is straightforward and simple to understand
  • Cashback rewards which are credited to their accounts regularly
  • Rewarded based on their multiple relationships and transactions done with the bank
  • No requirement to make additional deposits to earn rewards

Said Jeremy Soo, Head of Consumer Banking Group Singapore, DBS Bank, ‘We are delighted to introduce this program that rewards our customers based on their banking relationships with us. Currently, most of our customers are already conducting regular banking transactions with us and this means that customers can simply enjoy monthly cashbacks with ‘POSB Cashback Bonus’ without doing a lot more. As the ‘People’s Bank’, we are committed to offering our customers greater value through innovative products and services, and to providing superior deals for them to enjoy.’

To enroll in the ‘POSB Cashback Bonus’ program, customers simply have to log on to POSB/DBS iBanking to register, and nominate a deposit or credit card account to receive their monthly cashback.

In 2013, the bank launched the DBS Multiplier Program to reward emerging affluent customers for consolidating their finances with DBS. With DBS Multiplier, which was recently enhanced in August 2016, customers are able to enjoy a higher interest of up to 2.68% p.a. on their account balances by fulfilling any three of the five transaction categories. The program has been a hit with customers and the bank has now more than 90,000 accounts.

When asked if there is any lock in period with the amount, it is said that there is no minimum period but the recommendation is that the customer should be in the programme for at least 2 months – long enough for the cashback to be credited into his/her account. And the customer can either be enrolled in thePOSB Cashback Bonus programme or the DBS Multiplier, but not both.

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