What are the best cashback credit cards?
A simple google search and you are faced with an endless list of credit cards, leaving you more confused than before.
In this article, we will cover the various types of cashback credit cards and which cards to use to maximise your cashback.
What is a cashback credit card and how does it work?
A cashback credit card is a credit card that allows you to earn cash rebates when you use it to make qualifying purchases. Cashback rewards usually operate on a percentage basis whereby a designated percentage of what is spent is credited back to your account.
Do note that while cash rebates are rewards you earn as you spend using the credit card, it does not equate to an immediate discount. The full amount will still be charged to the card before you receive the cashback.
Types of Cashback Cards
Every card has a unique rewards system that is tailored to different needs. Credit cards with higher rates tend to impose certain restrictions, otherwise the potential to earn will be infinite.
Hence to determine which card can give you the maximum cashback, it is essential to understand the different types of cashback cards. Now let’s introduce some common terms you’ll come across in your search for the cashback card that suits your spending habits best.
Cashback Cap
Cashback caps, or earning limits, are most common with cashback credit cards. This is often due to their high reward rates. These caps limit the cash rebates that you can earn.
Once the cap is met, either the base rate drops significantly, or you will no longer be able to gain further cashback from spending with the same card. This limit usually resets monthly.
Minimum Spending
Cards with minimum spending criteria have two rates, the base rate and advertised rates. Consumers must meet the minimum spending criteria in order to enjoy the advertised rates.
The ability to meet the minimum spending criteria will determine your monthly earnings. Falling short of the requirement, even by just S$1, will result in a significant drop in rewards.
Unlimited cashback
Some cashback cards do not have earning limits. Therefore, it is of no surprise that these cards offer some of the lowest cashback rates in the market. The average rates for unlimited cashback credit cards are between 1% to 2%.
However, this card favours those who spend a large sum of money every month. For those with lower spending, it would be better to have a mix of capped cashback cards.
What are the best cashback credit cards?
In this segment, we’ll be breaking down some of the best credit cards for each spending category.
Here’s what we’ll cover for each card:
- Annual Fees & Waivers
- Minimum Spending Requirements
- Cashback Rates
- Cashback Caps
- Additional Benefits
OCBC Frank Card
The OCBC Frank Card is popular among young professionals. A low minimum spending requirement means that individuals can access top rates at a low cost.
| Details | |
| Annual Fee & Waivers | S$80 (waived for two years) Automatic annual waiver with min annual spending of S10,000 |
| Minimum Spending Requirements | S$600 per month |
| Cashback Rates | 6% rebate on online spending 6% rebate on foreign currency spendings and mobile contactless payments apps such as Google Pay and Apple Pay. 0.3% on all other expenditure |
| Cashback Caps | S$25 for online spending (Spending target: S$416.66) S$25 for foreign currency spending and mobile contactless payments (Spending target: S$416.66) S$25 for other expenditure (Spending target: S$8,333.33) |
| Additional Benefits | Exclusive card deals with selected brands and retailers. Eg: Zara, Pull&Bear, Hugo, etc. |
UOB EVOL Card
The UOB EVOL Card is ideal for working professionals who regularly spend online or make payments via contactless payment apps. Apart from its low minimum spending requirements, it also offers discounts at eco-friendly merchants.
| Details | |
| Annual Fee & Waivers | S192.60 (waived for one year) Waived after making 3 transactions monthly |
| Minimum Spending Requirements | S$600 per month |
| Cashback Rates | 8% cashback on online and mobile contactless payments apps such as Google Pay and Apple Pay. 0.3% cashback on all other expenditure |
| Cashback Caps | S$20 for online spending (Spending target: S$250) S$20 for mobile contactless payment (Spending target: S$250) S$20 for other expenditure (Spending target: S$6,666.67) |
| Additional Benefits | Over 1000 deals and discounts offered on eco-friendly merchants Get access to UOB TMRW Rewards+ Complimentary travel insurance coverage Increased interest rates on savings in UOB One Account |
DBS Live Fresh
The DBS Live Fresh Card is suitable for young spenders. It offers cashback for both online and contactless spending while rewarding users when they spend at eco-friendly merchants.
| Details | |
| Annual Fee & Waivers | S$192.60 (waived for one year) |
| Minimum Spending Requirements | S$600 |
| Cashback Rates | 5% rebate on online spending & visa contactless payment Additional 5% cashback on eco-friendly merchants (eco-eateries, eco-retailers and eco-transport) 0.3% cashback on all other expenditure |
| Cashback Caps | S$20 for online spending (Spending target: S$400) S$20 for contactless payment including payWave (Spending target: S$400) S$15 for spending at eco-friendly merchants (Spending target: S$400) S$20 for other expenditure (Spending target: S$6,666.67) |
| Additional Benefits | Unlike other cards that only rewards spendings via mobile payment apps, the DBS Live Fresh allows users to earn cashback when spending via payWave. |
Maybank Family and Friends
The Maybank Family and Friends Card is a great option for both average and low spenders. Its flexible rewards structure allows cardholders to select five out of eight cashback categories to earn cashback from.
| Details | |
| Annual Fee & Waivers | S$180 (waived for three years) |
| Minimum Spending Requirements | S$800 |
| Cashback Rates | 8% rebate on five preferred categories out of the following: – Groceries – Dining & Food Delivery – Transport – Data Communication & Online TV Streaming – Retails & Pets – Online Fashion – Entertainment Pharmacy & Wellness |
| Cashback Caps | S$125 total monthly cashback (S$25 per category) |
| Additional Benefits | Exclusive Maybank card deals with specific brands and retailers. Eg: Skechers, Neonmello, Zalora, etc. Increase interest earning of child’s saving by 3X with Maybank Family Plus |
Citi Cashback +
The Citi Cash Back + Card offers one of the highest unlimited cashback rates on the market without any spending restrictions.
| Details | |
| Annual Fee & Waivers | S$192.60 (waived for one year) |
| Minimum Spending Requirements | – |
| Cashback Rates | 1.60% |
| Cashback Caps | – |
| Additional Benefits | Enjoy Citibank’s cardmember privileges and features: – Citi World Privileges – Citi PayLite – Citi FlexiBill – Citi Quick Cash Exclusive promotions for credit cardholders at selected dining and retail outlets. |
UOB Absolute Cashback
The UOB Absolute Cashback Card currently offers the highest unlimited cashback rate on the market without minimum spending requirements. This card also allows users to earn cashback from categories excluded by other cards such as insurance payments and medical bills.
| Details | |
| Annual Fee & Waivers | S$192.60 (waived for one year) |
| Minimum Spending Requirements | – |
| Cashback Rates | 1.70% |
| Cashback Caps | – |
| Additional Benefits | Enjoy exclusive American Express Card privileges and savings on dining, shopping and accommodation. Get access to UOB TMRW Rewards+ |
Standard Chartered Unlimited Cashback
The Standard Chartered Unlimited Cashback Card is suitable for large spenders with its unlimited cashback with no minimum required spending.
| Details | |
| Annual Fee & Waivers | S$192.60 (waived for two year) |
| Minimum Spending Requirements | – |
| Cashback Rates | 1.50% |
| Cashback Caps | – |
| Additional Benefits | Exclusive island-wide card deals with specific brands and retailers. Eg: Agoda, Caltex, Tangs, Starbucks, etc. |
Here are the cards we recommend for each category
| Best for: | Best Credit Cards: | Strategy to Maximise Cashback |
| Daily expenses | OCBC Frank UOB EVOL DBS Live Fresh | Use one of the cards in this category for the bulk of your monthly expenditure. Spend just enough to hit the maximum cashback in each category. |
| Household expenses | Maybank Family and Friends | |
| Unlimited Cashback | Citi Cash Back+ UOB Absolute Cashback Standard Chartered Unlimited Cashback | For the remaining of your monthly payments and purchases, use one of the unlimited cashback credit cards. |
Hope you find this article helpful. You can also check out here to find out everything you need to know about credit scores.
