Monday, July 21, 2008

DBS credit card funds transfer

The best deal for funds transfer so far seems to be UOB 6-month funds transfer with one time processing fee of 1.5%. The effective rate works out to be about 3+% per annum. If you shop around for loans with repayment period of 1 year, all of them charge at more than 10% per annum.

Thanks to a fellow visitor of this blog Kurt who introduced to me DBS credit card funds transfer. Take note the offer is valid till 31 July 2008.

I did work out the effective rate per annum and to my surprise, it is only at 4.73%. I think that is the lowest rate I have ever seen so far?! As I am not really a credit card borrower, pardon me if I am wrong.

The rate seems to be very attractive for a 12-month repayment period; so I thought of sharing this piece of information. Below are an example of how the loan works and an illustration of how the effective annual rate is computed in Excel.

Loan = $5000
Repayment period = 12 months
Administration fee of 4% = $200

Excel illustration of DBS credit card funds transfer

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