Best Balance Transfer Loans 2019

If you have an unmanageable credit card balance, you may want to consider a balance transfer loan to save money as you repay your credit card debt. Below, we compare the best balance transfer offerings we've found in Singapore to help you choose the best option to manage your debt.

Table of Contents

Best 6-Month Interest-Free Balance Transfer Loans

In this section, we present our top picks for balance transfers that offer 6-month interest-free periods. These loans could be a great option for those who want a balance between low fees and decently long interest-free periods.

Effective Interest Rates of 6-Month Interest-Free Balance Transfers

graph of effective interest rates of best balance transfers in Singapore by each bank for a 6-month interest rate free product

Best Credit Card Balance Transfer: Standard Chartered Funds Transfer

Consider this if you prefer a balance transfer loan with a low processing fee and and low minimum monthly repayment

Processing Fee 1.99%
Maximum Principal 95% of credit line
Interest Free Period 6 months

If you are looking for a balance transfer to repay your credit card or personal loan, then Standard Chartered's Funds Transfer might be a good fit for you. The bank's product offers a great combination of a low processing fee (1.99%) and the lowest minimum payment requirement (1%). Additionally, Standard Chartered offers interest-free periods of 6 and 12 months, giving borrowers an opportunity to pay down their debt and making the total cost of Standard Chartered's balance transfers below the average in Singapore.

However, it is important to note following the interest-free period, Standard Chartered's balance transfers accrue interest of 25.9% annually. Therefore, it is wise to make monthly payments that exceed the monthly repayment requirement in order to avoid accruing a substantial interest costs. To learn more, read our full review.

Summary of Standard Chartered's Balance Transfer Costs

Interest-Free PeriodProcessing FeeEffective Interest RatePrevailing Interest Rate
6 months1.99%4.12%25.9%
12 months4.99%4.86%25.9%

Best Line of Credit Transfer: HSBC Personal Line of Credit Balance Transfer

HSBC Personal Line of Credit Balance Transfer

Consider this if you are looking for a cheap 6 month balance transfer of less than S$10,000

Processing Fee 1.38%
Maximum Principal 95% of credit line
Interest Free Period 6 months

HSBC's current personal line of credit balance transfer offer is a great option for borrowers that know that they require 6 month balance transfer specifically. HSBC is currently offering a 6 month interest-free period combined with a 1.38% processing fee for its personal line of credit balance transfer, making it the cheapest option for borrowers with personal debt of less than S$10,000. HSBC also charges a lower prevailing interest rate than other 6-month interest-free balance transfers (18.5%); however it is still important to avoid accruing interest costs in order to make your balance transfer as inexpensive as possible. Finally, it is important to note that HSBC's other balance transfer offerings are much less competitive than its 6-month personal line of credit transfer. To further explore HSBC's balance transfer offerings, read our full review.

Summary of HSBC's Balance Transfer Costs

Transfer TypeDurationInterest RateProcessing FeeEffective Interest RatePrevailing Interest Rate
PLOC6 monthsN/A1.38%3%18%
PLOC12 months4.88%N/A4.88%18%
Credit Card6 months2.5%S$88, waived for S$10,000 or more4.39%28%
Credit Card12 months4.88%S$88, waived for S$10,000 or more6.77%28%

Best for Large Balances: Maybank Fund Transfer

Maybank Fund Transfer

Consider this if you require a large balance transfer, which you expect to repay within 6 months

Processing Fee 1.38%
Maximum Principal 95% of credit line
Interest Free Period 6 months

Maybank's balance transfer offer for amounts of at least S$10,000 with 6 months interest-free are particularly attractive. The bank charges a 1.38% processing fee, which tied for the lowest fee among 6-month interest-free transfers with HSBC, though it advertises a lower EIR than HSBC. With that said, it is important for borrowers to be sure that they will be able to repay such a large balance transfer within 6 months. If they are unable to pay their entire debt in this amount of time, they may be better off with a 12 or 18 month interest-free transfer as Maybank charges 25.9% following the interest-free period. Maybank also charges a competitive 1.88% for 6-month interest-free balance transfers of S$2,000. Read our full review to further explore Maybank's balance transfer offerings.

Summary of Maybank's Balance Transfer Costs

DurationMinimum TransferInterest RateProcessing FeeEffective Interest RatePrevailing Interest Rate
6 monthsS$10,000N/A1.38%2.96%25.9%
6 monthsS$2,000N/A1.88%4.02%25.9%
12 monthsS$2,0004.99%2.5%9.01%25.9%

For New Citi Customers Only: Citibank Ready Credit Balance Transfer

Citibank Credit Card Balance transfer

Consider this if you have not been a CitiBank customer in the past year

Processing Fee 1.58%
Maximum Principal 90% of credit line
Interest Free Period 6 months

If you have not had a banking relationship with Citibank in the past 12 months, then Citibank's Balance Transfer product is also a great option for 6-months interest-free balance transfers. As long as you are a new customer to Citibank, you can enjoy 6 months of zero interest on your balance transfer for paying only 1.58% of service fee. However, this rate increases to 2.5% if you've had a banking relationship with Citi in the past 12 months, which is well above the market average. Citibank's credit card balance transfer also provides the market leading 1% monthly repayment requirement. As always, we strongly suggest that borrowers make sure to repay as much of their balance as possible since they will incur 20.95% - 26% of annual interest after their 6th month. Read our full review in order to learn more about Citibank's balance transfers.

Summary of Citibank's Balance Transfer Costs

Interest-Free PeriodProcessing FeeCredit Card Balance Transfer EIRReady Credit Balance Transfer EIR
3 months1.58%6.73%6.69%
6 months1.58%3.65%3.60%
6 months2.50%5.81%5.72%
12 months5.50%7.87%7.58%

* rates for existing customers

Best 3-Month Interest-Free Period Balance Transfer Loan: UOB CashPlus Funds Transfer

UOB CashPlus Funds Transfer

Consider this if you need the best 3 month balance transfer loan

Processing Fee 1.49%
Maximum Principal 95% of credit line
Interest Free Period 3 months

If you have only a small amount of unpaid credit card balance that you can pay down within 3 months, then UOB's Balance Transfer is likely the best option for you. For an interest-free period of 3 months, UOB's balance transfer charges solely a 1.49% processing fee, the lowest we've seen in the market. In comparison, other banks generally charge 1.58% to 1.8% for the same length of interest-free period. As we mentioned above, it is critical that you pay down your entire balance within the designated interest-free period in order to control the cost of your balance transfer. This is because your remaining balance will incur interest of 19.8% for CashPlus funds transfers or 28% for credit card transfers after your 3rd month, which can balloon into a considerable amount. Therefore, this product is ideal for small balance transfers that you can manage to repay quickly. To explore this balance transfer in more depth, read our full review.

Summary of UOB's Balance Transfer Costs

Interest-Free PeriodProcessing FeeEIR with UOB Credit CardsEIR with UOB CashPlusPrevailing Interest Rate
3 months1.49%6.11%6.08%19.8%
6 months2.5%5.34%5.27%19.8%

Best Long-Term Interest-Free Period Balance Transfer Loan: UOB CashPlus Funds Transfer

UOB CashPlus Funds Transfer

Consider this if you need the cheapest 12-18 month balance transfer loan

Processing Fee 3.88%
Maximum Principal 95% of credit line
Interest Free Period 12 months

In our view, UOB's Balance Transfer product is the best for those who need a long interest-free period to repay their loans. UOB offers the least expensive balance transfers with interest-free periods of 12 and 18 months, due to its special 3.88% and 4.88% processing fees offered to online applicants.

UOB offers credit card or a CashPlus balance transfer loans, which vary very slightly in terms of their total cost and monthly minimum repayment requirement. The total cost difference is negligible and both products are the cheapest available in Singapore. Additionally, the repayment requirement shouldn't be a significant factor for borrowers that plan to pay down their debt in full as soon as possible. When the interest-free period is over, borrowers begin to incur annual interest of 19.8% for CashPlus funds transfers or 28% for credit card transfers on their remaining balance, so it is important to pay more than the minimum requirement in order to make the balance transfer as inexpensive as possible. Read our full review to learn more about all of UOB's balance transfer products.

Summary of UOB's Funds Transfer Costs

Interest-Free PeriodProcessing FeeEIR with UOB Credit CardsEIR with UOB CashPlusPrevailing Interest Rate
12 months3.88%4.49%4.37%19.8%
18 months4.88%4.09%3.92%19.8%

Best Balance Transfer Loan Promotion: DBS & POSB Balance Transfers

Consider this if borrowers seeking a 12-month interest-free balance transfer of at least S$15,000

Processing Fee 2.5%
Maximum Principal 93% of credit line
Interest Free Period 6 months

DBS and POSB's balance transfers are great options for borrowers seeking 12 month balance transfers of at least S$15,000 due to their current promotions. While the banks do not offer the lowest rates for their balance transfers (EIR: 5.06% - 5.20%), they are currently offering S$100 to S$500 in cashback to borrowers that are approved for balance transfers of at least S$15,000. As we've mentioned with other balance transfers, it is important for borrowers to repay their entire balance before the end of the interest-free period as DBS and POSB charge 19.8% to 29.8% for cashline balance transfers and 25.9% for credit card balance transfers after the interest-free period. To learn more about the features of DBS and POSB's balance transfers please refer to our full review.

Summary of DBS & POSB's Funds Transfer Costs

Interest-Free PeriodProcessing FeeEIR with CashlineEIR with Credit CardPrevailing Interest Rate
6 months2.5%5.27%5.34%19.8% - 29.8%
12 months4.5%5.06%5.20%19.8% - 29.8%

Summary Table of Best Balance Transfer Offers in Singapore

For your reference, the table below outlines the processing fees associated with Singapore's best balance transfers for 2019.

Processing Fee by Interest Rate Free Period3-months6-months12-months18-monthsMinimum Monthly Repayment
Standard Chartered Funds TransferN/A1.99%4.5%N/A1%
UOB CashPlus Funds Transfer1.49%2.5%3.88%4.88%2.5% (or S$30, whichever is higher)
UOB Credit Card Funds Transfer1.49%2.5%3.88%4.88%3.0% (or S$50, whichever is higher)
OCBC Balance Transfer1.8%2.5%4.5%N/A3.0% (or S$50, whichever is higher)
Citibank Credit Card Balance Transfer1.58%1.58%5.5%N/A1% (or S$50, whichever is higher)
Citibank Ready Credit Balance Transfer1.58%1.58%5.5%N/A3% (or S$45, whichever is higher)
DBS/POSB Balance Transfer CashlineN/A2.5%4.5%N/A2.5%
DBS/POSB Balance Transfer Credit CardN/A2.5%4.5%N/A3%
Maybank Fund TransferN/A1.38% if >S$10,000, 1.88% if >S$2,0002.5% + 4.99% of interestN/A3% (or S$10, whichever is higher)
HSBC Credit Cards Balance TransferN/AS$88 waived if >S$10,000 + 2.5% of interestS$88 waived if >S$10,000 + 4.88% of interestN/A3% (or S$50, whichever is higher)
HSBC Personal Line of Credit Balance TransferN/A1.38%4.88% of interestN/A3%

Visual Comparison of Effective Interest Rates of Balance Transfer Loans

For interested readers, below is a graphic illustration of effective interest rates of each balance transfer loan available in Singapore, organized by tenure of loans. These are calculated by assuming you only make the monthly minimum repayment requirement each month of your loan, and repaying the whole remaining balance in the last month of your interest-free period.

Effective Interest Rates of 12-Month Interest-Free Balance Transfers

graph of effective interest rates of best balance transfers in Singapore by each bank for a 12-month interest rate free product
Duckju Kang

Duckju is the Senior Vice President of ValueChampion Singapore. He covers the financial services industry, consumer finance products, budgeting, and investing. He previously worked in the financial services industry, including at such hedge funds as Tiger Asia and Cadian Capital.

Comments and Questions

{"endpoint":"\/newsletter\/subscribe","style":"blue","title":"Keep up with our news and analysis.","version":"sidebar"}