Monday, August 4, 2008

Redeem brokerage fees - Part 2

In my previous article, I did explain how you can redeem your brokerage fees when you make bill payment from DBS credit card and settle the credit card amount that is due with Standard Chartered Xtrasaver card.

Lately due to bad market condition, trading volume over SGX has plummeted as investors or traders shun away from stocks and shares. On the other hand, banks do come up with promotions on their cash line facilities to encourage customers to trade or buy stocks.

Basically you need to pay your stock purchases using those banks’ cash line facilities, incur interest on debit balance at the end of the month and then your brokerage fees will be returned back. If you put sufficient amount into the cash line account in advance and pay from that account for stock purchases, your interest charged can be minimal. Therefore you can have a portion of your brokerage fees being redeemed.

Currently Citibank Ready Credit, DBS Cashline and UOB Cashplus are having these brokerage promotions. The last two banks are offering $25 cash rebates each month when you pay at least $3000 to brokerage firms. Your account must be in debit balance of any amount at the end of the month in which the trade is made. For DBS Cashline, you can earn additional $5 when you pay to DBS Vickers.

Among the three banks, Citibank Ready Credit promotion gives the highest amount of cash rebate. You can earn up to $120 cash rebate when you participate in their promotion. However the requirement is slightly different. You need to maintain an average daily debit balance of $1000 in your Ready Credit account.

Take note the minimum interest for both DBS Cashline and UOB Cashplus is at $5 while the minimum interest for Citibank Ready Credit is at $15. Therefore net of those interests, you can still earn some cash rebates from those promotions if you put sufficient funds into their cash line accounts in advance.

For more information, you may refer to the respective websites to read further.
Citibank Ready Credit Brokerage Promotion
DBS Cashline Brokerage Promotion
UOB Cashplus Brokerage Promotion

Below is a matrix table of participating brokerage firms for each bank cash line facilities.

DBS CashlineUOB CashplusCitibank Ready Credit
DBS Vickers Securities Online (S) Pte LtdXX
DBS Vickers Securities Pte LtdXX
DMG & Partners Securities Pte LtdXXX
AmFraser Securities Pte LtdXXX
CIMB-GK Securities Pte LtdXXX
Kim Eng Securities Pte LtdXXX
Lim & Tan Securities (S) Pte LtdXXX
Philips Futures Pte LtdXXX
Philips Securities Pte LtdXXX
UOB Kay Hian Pte LtdXX
OCBC Securities Pte LtdX
Citibank Brokerage ServicesX

13 comments:

Ku said...

Very nice write-up, Mike, keep up the good work and hope everyone benefits from this. :)

Mike Dirnt said...

thanks Ku. you are the first person to introduced me to CRC! i still remember that. Verbatin introduced the other 2.

we shall learn and share anything that is rewarding!

Mike Dirnt said...

Ku by the way, i did see errors in the cbox once in a while. try to do the following while waiting for repair.

1) did you see the refresh button? try and click that

2) clear your IE cache and restart IE.

durio said...

for DBS Cashline and UOB Cashplus, debit balance of $1 also ok ah?

Mike Dirnt said...

yes durio any amount. if got $0.50 also can. :P

but too bad cant. so its $1 minimum

Anonymous said...

Hi Mike,

just to confirm my understanding as I am reading the DBS Cashline Promo. In order to be entitled to the cash rebate, one need to draw down the invested amount based on the credit line.

Doesn't this incur additional interest @ 17.8% pa which probably make no economic sense ya?

thanks.

Mike Dirnt said...

1) transfer $3000 using your own money into DBS cahline account, this is the money that you want to use for stocks
2) pay from $3001 from DBS cashline to brokers
3) $1 will be your debit balance. keep it till the last day of your statement. u will incur 17.8% of this $1

BumbleBee said...

Hi Mike,

In this article, you wrote " Take note the minimum interest for both DBS Cashline and UOB Cashplus is at $5 ".

Does this mean that one is still charged 17.8% of the debit balance or $5 whichever is more?


In your latest comment on Sep 10 2008 in this article, you mentioned "$1 will be your debit balance. keep it till the last day of your statement.",

Can i repay this $1 debit after approx 1 month so as not to be charged any interest, something like repaying one's credit card bills?


Are there any other charges, like 1time processing fee, payment for insurance processing fee e.t.c for cashline in reference to this stock trading promotion?

Thanks Mike, you have been a great help =) and Happy CNY !

Mike Dirnt said...

Hi,

thanks happy CNY to you too!

There is no more promo for Cashplus. Ready credit is expiring on 31 Jan 2009. You can still participate with Cashline.

The trick is to put money into your credit line accounts first before making payments. So you wont be charged with hefty interests. But you just need to maintain the debit balance as required by each facility.

For Ready credit as an example, you need to maintain average debit balance of 1k throughout the whole month. So your minimum interest will be 18%/12 of 1k which is about $15.

There is a slight error in my article for cashplus and cashline. There is no minimum charge of $5 if you just maintain a debit balance of $1 on statement date for Cashline. When the rebate is credited, just transfer out $24.

Just ask in the cbox, if you need further help

choozm said...

Hi,

When making bill payment via DBS iBanking to DBS Vickers, there is only one selection: DBS Vickers Securities (S) Pte Ltd.

However I use DBS Vickers Online, do I still choose "DBS Vickers Securities (S) Pte Ltd" but enter DBS Vickers Online account no.?

Thanks.

Mike Dirnt said...

Hi choozm,

Bill Payment -> DBS-VICKERS SECURITIES

that will do. then your account number under Consumer Reference no.

ZS said...

hi Mike,

i suppose this rebate applies to trading of USD shares in SGX too?

Mike Dirnt said...

Hi ZS,

take note, at the moment only DBS cashline promo is on. citibank one has stopped and may/may not come back in future

yes it does not matter what stocks you buy