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It is a well known fact that advertised Rewards Points and Cashback percentages come with a lot of restrictions and demands.

For many cards, if you fail to spend a minimum of $600 or more per month, you will get a lower rate to the tune of 0.3% instead of the advertised 5% or more. This can cost you hundreds of dollars per year.

  • 12 x 500 x 0.3% = $21.60
  • 12 x 600 x 5% =  $360

As seen in the above example, meeting your minimum spend target could save you over 300 dollars a year. Or if you look at it the other way around, you might be missing more than 300 dollars per year (roughly equates to a return air ticket to Bali). 

If you are very smart about your spending, there are plenty of cards such as the Citibank Dividend, UOB delight, OCBC 365 and HSBC Visa Platinum with cashback of up to 8% for some categories. This will allow you to maximize your cashback with smart spending and meeting the minimum spend if you reach the minimum spend, steering clear of the caps that are between $60 and $80 per month.

However, if you are not keeping track on how much you spend and have huge variation in monthly spend, you might want to look at ANZ Optimum or the American Express True Cashback:

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Live life to the fullest with your Credit Card: