Wondering which card is better for overseas use - Trust card vs YouTrip? We compared the fees and exchange rates and also included an alternative option Wise
The UOB One Card can look like a good bet when it comes to cash rebates. But if you look under the hood of this credit card, you’ll find quite a few strings attached. Like spending minimums per quarter to meet the most attractive rebates. Read on to learn more about how this card works and if it could be a good fit for you.
|If you want a truly global account that doesn’t have minimum purchase amounts or spending limits, take a look at the cheap and easy Wise multi-currency card
|Table of contents
The UOB One Card is a credit card that you can use to spend and shop wherever Visa is accepted, even globally. Once your application is approved, UOB will provide you a credit line that you can spend against using the card. After every statement cycle, you will receive a bill with the amount you need to pay back by the due date to avoid interest.
You can either pay back the full amount or the minimum monthly repayment amount. If you make a payment after the due date or spend above your limit you will be hit with fees. But there are a number of other fees attached to this card. Here is a quick breakdown, alongside the Wise borderless card.
|The UOB One Card¹
|Wise borderless card
|S$192.60 (1st year is waived)
|Annual interest rate
|Overseas exchange rate
|Set by Visa
|The mid-market exchange rate
|Late payment fee
|Minimum monthly repayment
|3% of the current balance, with a minimum of S$50
|Foreign currency transaction fee
|Cash advance transaction fee
|6% of the amount withdrawn, with a minimum of S$ 15
|Cash withdrawals free up to S$ 350 every month
If you are over the age of 21 and meet the income requirements, you can apply for the UOB One Card. For Singapore citizens and Permanent Residents, the income requirement is S$ 30,000 per year. If you are a foreign nationality, the minimum annual income requirement is bumped up to S$ 40,000.
In case you aren’t able to make the income requirements, you can put down a fixed deposit collateral of S$ 10,000 or more. You can apply through either the UOB website or a branch near you. Just make sure to have copies of the qualified documents for identity, address, and income verification.²
The UOB One Card can be used for all shopping and spending you usually do in and outside Singapore. But it comes with additional benefits in the form of cash rebates and account perks. Let’s take a closer look at each one to understand how to qualify for these additional benefits.
The cash rebates are the biggest draw to the UOB One Card. As long as you keep spending, and the more you spend the better, you can increase the amount of cash rebate you get. But to get the attractive cash rebates, you need to spend a minimum every month for three consecutive months. And have a minimum of 5 purchases per statement cycle. The cash rebate is only realized quarterly. Here is how it breaks down:³
|For 3 months consecutively, if you spend.
|Cash Rebate on All Spend
|Cash Rebate Grab or UOB Travel
|Cash Rebate on Singapore Power Utilities Bill
|S$ 500- S$1,999 per month
|S$ 2,000 per month
So while the cash rebates can look good at first glance, there are a number of strings attached to get the cash rebate in your account. Make sure your purchasing patterns make sense when signing up for this card looking for the cash rebates.³
If you charge your entire travel fare to your UOB One Card, you are eligible for complimentary travel insurance. You can get emergency medical assistance coverage of up to S$ 50,000, and public conveyance personal accident insurance up to S$ 500,000.⁴
If you are a One Account banking client at UOB, you will get additional benefits when you sign up for the One credit card. This includes an additional interest of 1.5%- 3.88% added to your One bank account if you make the qualifying purchases and deposits.⁵
The UOB One Card can actually make your overseas spending more expensive than you think. There are two fees to keep in mind whenever you want to use this card overseas. There is a flat 2.8% transaction fee on every purchase that you make in non-Singapore dollars. The flat fee, no matter what the price, can make it more expensive for you to spend frequently on the card when traveling.
The second is a hidden fee in the exchange rate. Since the exchange rate is set by Visa, they can give you a weaker rate than they get in the market. And in that difference, they are able to take a slice of every conversion from any foreign currency to Singapore dollars that occurs on the card. This plus the foreign transaction fee can really eat into any cash rebates you were hoping to accumulate. Want an easier way to save real money when you travel? Take a look at the Wise borderless account.
Get your Wise borderless card - a multi-currency account that is on average 7 times cheaper than banks
Wise’s multi-currency account doesn’t make you hit spending minimums or wait for cash rebates. Instead, Wise uses smart technology to make sure you have to spend less real money anytime you use the card. The borderless card is on average 7x cheaper than the Singapore banks because it only has you pay one fee. That’s the conversion fee of .35-1%.
No annual fees, foreign transaction fees or cash withdrawal fees. Plus every time you use the card locally when you travel or when you load up on any one of the 40+ global currencies in the account, you will always get the mid-market exchange rate. That’s the rate you see on Google.
Want more reasons to sign up for Wise’s borderless account? You can use the same account to shop online at global retail platforms like Qoo10, Alibaba and Amazon. And the award-winning app will help you keep track of your spending with magic push notifications. So leave the fees and cash rebates behind and keep real hard cash in your wallet when you sign up for Wise’s borderless account.Sources used for this article:
All sources checked as of 27 Feb, 2020
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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