Credit cards in Singapore offer a myriad of benefits—from cashback and air miles to airport lounge access and travel insurance. Yet, many cardholders find themselves irked by one recurring cost: the annual credit card fee. While it may seem an inevitable price to pay for premium perks, the truth is, many Singaporeans successfully get these fees waived, often with minimal effort.
In this comprehensive guide, we’ll delve into the strategies, eligibility criteria, and best practices to avoid paying annual credit card fees, allowing you to retain the benefits without the burden.
Understanding the Annual Fee: What Are You Paying For?
An annual fee is a fixed amount charged by credit card issuers to maintain your card membership. It typically ranges from S$160 to S$800, depending on the card’s category—be it a basic cashback card or a premium lifestyle card. Banks justify these charges as covering administrative costs, rewards infrastructure, and exclusive privileges.
However, many cardholders don’t utilise these benefits enough to justify the fee. The good news? Banks often use the fee as a retention tool, meaning it’s negotiable—especially for valued customers.
Why Banks Waive Fees: The Economics Behind It
From the bank’s perspective, it’s more economical to waive your annual fee than to lose you as a customer. Credit card issuers make money through:
- Merchant fees when you spend
- Interest charges (if you carry a balance)
- Foreign transaction fees
- Cross-selling opportunities for loans, insurance, and investment products
If you’re a profitable customer or have good spending patterns—even if you pay off in full monthly—the bank often prefers to retain your loyalty rather than risk card cancellation. This is the leverage you must use.
When Are You Eligible for an Annual Fee Waiver?
Eligibility depends on several factors:
1. Spending Patterns
- If you’ve spent S$10,000 or more annually, most banks will consider you for an automatic waiver.
- Even S$5,000–S$8,000 per year might suffice for mid-tier cards.
2. Payment History
- Timely payments reflect reliability and make you a low-risk customer, which banks value highly.
3. Customer Relationship
- If you hold multiple products with the same bank (e.g., mortgage, savings, or investment accounts), your loyalty is an asset.
4. Length of Relationship
- Long-standing customers are more likely to receive goodwill waivers, especially if you have a good track record.
The Three Main Ways to Get a Waiver
1. Automated Waivers via Internet Banking or App
Some banks have simplified the waiver request process. You can now request a fee waiver without calling in.
Example:
- DBS/POSB: Log in > “More” > “Cards” > “Request Fee Waiver”
- OCBC: Log in to app > Select card > “Request fee waiver”
- UOB: Log in > “Cards” > “Annual Fee Waiver”
Approval is instant in most cases, especially if you meet the spending threshold. If denied, the system usually redirects you to call customer service.
2. Calling the Customer Hotline
Speaking directly to a customer service officer remains one of the most effective ways to get a waiver, especially for premium cards.
Tips for a Successful Call:
- Be polite but assertive: “I noticed I’ve been charged the annual fee for my card. I would like to request a waiver as I’ve been a long-time customer with good payment history.”
- Highlight your spending: Mention if you’ve used the card regularly.
- If necessary, escalate: Ask to speak to a supervisor if the first level of support refuses.
- Be prepared to cancel: If you express intent to terminate the card, banks will often offer to waive the fee as a retention move.
3. Retention Offers or Spending-Based Waivers
Some banks may not waive your fee outright, but will offer to waive it if you:
- Spend a specific amount in the next 3 months
- Pay the fee upfront and get rewards like miles or vouchers in return
These are common with premium cards such as:
- Citi Prestige
- OCBC Voyage
- UOB Reserve
Evaluate the value of the perks vs the fee before accepting such offers.
What If Your Waiver Request Is Denied?
If the bank refuses to waive the fee, you have several options:
1. Downgrade Your Card
Most banks will allow you to downgrade to a no-fee version or basic variant of the card, which retains some benefits without the high cost.
2. Cancel the Card
As a last resort, cancelling is perfectly valid. If the card no longer aligns with your lifestyle or spending habits, there’s little reason to keep it. Just make sure to:
- Use up your rewards or miles
- Transfer any GIRO arrangements
- Pay off the outstanding balance
3. Switch to a Different Card or Bank
The market is competitive. Look out for cards with no annual fees for life, such as:
- HSBC Revolution
- Maybank Family & Friends
- CIMB Visa Signature
Special Cases: Cards with Non-Waivable Fees
Not all cards offer waiver options. For instance:
- American Express Platinum Charge (S$1,744 annually)
- UOB Reserve Card
- HSBC Visa Infinite
These cards come with curated concierge services, unlimited lounge access, and status benefits. Waivers are rare, unless you’re a private banking client or high-net-worth individual.
For such cards, consider:
- Offsetting the fee with welcome bonuses
- Redeeming perks like hotel stays, flight upgrades, or travel credits
- Using every benefit available to maximise value
Best Practices to Avoid Annual Fees Altogether
1. Use Cards with No Annual Fees for Life
Some cards are entirely free with decent rewards. These are ideal for budgeting or as backup cards.
Examples:
- CIMB World Mastercard (no annual fee)
- Maybank Platinum Visa
- Standard Chartered Smart Credit Card
2. Track Annual Fee Dates
Set reminders on your phone or calendar 11 months after card approval. Request waivers early before the fee is billed.
3. Keep Only the Cards You Use
Rotating through five cards may be tempting, but if you only actively use two, the rest become deadweight. Streamline your wallet.
4. Maximise Rewards While Meeting Waiver Criteria
If your card requires a S$10,000 annual spend, plan ahead:
- Charge insurance, utilities, and groceries to that card
- Use it for travel bookings and big-ticket items
- Consolidate monthly subscriptions under that card
This will help justify a waiver and earn you cashback or miles at the same time.
Real-Life Waiver Experiences from Singaporeans
1. Case Study: DBS Altitude Card
“I called DBS after getting charged the S$194.40 annual fee. The app declined the waiver, but when I called, they reversed it immediately. I’ve used the card for my Netflix and travel, but only spent around S$8,000.”
2. Case Study: UOB Lady’s Card
“I didn’t hit the spending minimum, but told them I loved the card’s perks and had two other UOB products. They gave me a one-time waiver out of goodwill.”
3. Case Study: HSBC Advance
“They denied the app request, but gave me a waiver after I called and said I would cancel. Turns out, customer loyalty counts.”
Final Thoughts: Play the Game Smartly
Getting your annual credit card fee waived in Singapore isn’t rocket science—but it does require a bit of strategy, timing, and self-advocacy. Banks want to keep good customers, and if you’re valuable to them, they’ll often meet you halfway.
The key is to:
- Monitor your spend
- Call proactively
- Know when to cancel or switch
In today’s financial landscape, savvy consumers don’t just earn rewards—they avoid unnecessary costs while doing so.
So the next time that annual fee notice lands in your inbox, remember—you have more power than you think.
