Let me do a comparison on the two.
Lim & Tan reward points
The table below shows the commission rates for SGX trades in Singapore dollar. If you notice from the effective rates, there is a discount of 5% on all tiers of brokerage fees. Taking on the minimum brokerage fee of $25 for example, the discount is actually $1.25 (5% of $25).
| Contract Size SGD | Online Rates | Effective Rates After Reward Points |
| Up to $50,000 | 0.28% | 0.27% |
| > $50,000 - $100,000 | 0.22% | 0.21% |
| > $100,000 | 0.18% | 0.17% |
| Min. Brokerage | $25 | $23.75 |
NTUC Linkpoints
Now assuming you choose to receive in NTUC Linkpoints. For every $1 of brokerage fee you paid, you will earn 5 NTUC Linkpoints. Taking on the minimum brokerage fee of $25 again, you will earn 125 NTUC Linkpoints for the brokerage fee that you paid. Now bear in mind that the conversion rate of 150 NTUC Linkpoints is equivalent to $1. Therefore the effective discount is actually $0.83 only.
As you can see from the comparison above, it shows that Lim & Tan reward points worth more than the NTUC Linkpoints. I have decided to do a switch into receiving Lim & Tan reward points instead.
4 comments:
Mike, thanks for your comparison about Lim&Tan reward schemes. As I understand, reward points can only be used to offset your next trade with L&T, as such it is not as flexible as NTUC Link points which can be redeemed for groceries, gadgets, etc.
Ku yes i understand about your concern.
but to me the dollar savings is still comparable. for example, a dollar saved on brokerage fees means you got a dollar more to spend on groceries. :P
and when you redeem your brokerage fees from L&T, you can effectively earn more net rebates from cash line brokerage promos :)
Haha Mike, I understand your point. L&T reward points offer higher rebates in terms of dollar savings indeed. :) But personally I would prefer to get concrete rewards directly on this current trade rather than using this to offset the next trade. This is L&T's trick to lure you into trading more with them, in fact :P If L&T reward points can also be encashed directly (rather than as brokerage offset), then I would consider switching to it. Anyway, I own an NTUC link card which I use to buy my stuff from Fairprice, so the consolidated link points from both L&T and Fairprice can be substantial. :)
Ku yes thats the trick to lure you into buying/selling more! :)
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