DBS & POSB Balance Transfer Review: Should You Apply?

DBS & POSB Balance Transfer Review: Should You Apply?

DBS & POSB's balance transfer rates are not particularly competitive, but make a decent backup option

Good for

  • Borrowers seeking a 12 month interest-free balance transfer

Bad for

  • Borrowers seeking balance transfer with lowest fees
  • Those looking for a short-term balance transfer

Editor's Rating


DBS and POSB do not offer the lowest fees for balance transfers (5.06% - 5.34%) in Singapore. However, they are worth considering if you are not approved for another bank's balance transfer loans.

Summary of DBS & POSB's Balance Transfers
Interest-free periods of 6 & 12 months
Effective interest rates: 5.06% - 5.34%
Minimum monthly payment: 2.5% - 3% of outstanding balance, or $50, whichever is greater
Transfer amount: S$500 - 93% of credit limit

Table of Contents

What Makes DBS & POSB Stand Out to Borrowers

DBS and POSB charge higher fees than their competitors, and are thus better viewed as a backup option for your balance transfer needs. The banks' best rates are for their 12-month interest free transfers. Therefore, balance transfers from DBS and POSB are only decent options for those borrowers that seek a 12-month interest-free period and are unable to obtain a better rate elsewhere.

Summary of DBS & POSB's Balance Transfer Costs

Interest-Free PeriodProcessing FeeCashline EIRCredit Card EIRPrevailing Interest Rate
6 months2.5%5.27%5.34%19.8% - 29.8%
12 months4.5%5.06%5.20%19.8% - 29.8%

Who Can Apply: Eligibility Criteria

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

To be eligible for DBS or POSB's balance transfer, borrowers must have credit card or Cashline accounts with one of the banks. The banks also require that borrowers apply for balance transfers of at least S$500.

Other Charges & Fees

In addition to their processing fees, DBS and POSB charge a late payment fee, although they do not specify the amount on their websites. The banks also charge prevailing interest rates of 19.8% to 29.8% for Cashline balance transfers and 25.9% for credit card balance transfers after the interest-free period. We strongly recommend that borrowers make timely payments and repay as much of their balance transfer as possible by the end of the interest-free period in order to minimise the total cost of their balance transfer.

How to Apply for DBS/POSB's Funds Transfer

To apply for a balance transfer from DBS or POSB, applicants must have a credit card or Cashline account with either bank. Applicants can apply online using their iBanking log-in information or their card and PIN numbers and are not require to produce any documents for the application.

Comments and Questions

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