Spending tips to consider during NS

If you’ve only got a minute:

• When it comes to spending, debit cards offer more benefits than cash, ATM cards or EZ Link cards.
• Debit cards provide convenience when it comes to online shopping, often alongside benefits like cashback or reward points.
• Unlike credit cards, debit cards are linked to your bank account which means your spending is deducted directly from your account balances.

When we were younger, many of us would have used cash, EZ-Link cards, or ATM cards to pay for our purchases.

As we had limited access to other types of cards due to age and income restrictions, many of us may not be familiar with the differences between ATM and debit cards.

On the surface, they share some similarities. These include letting you withdraw money from an ATM and making cashless payments, with the utilised funds being deducted from a designated linked savings account. However, debit cards do provide other benefits over using an ATM card.

Here are 4 reasons to consider using a debit card for your spending.

1. Online shopping friendly

With the immense growth of online shopping and e-commerce in recent years, you are very likely to be part of an ever-growing crowd that has embraced the idea of online shopping being a click away, or transacting from the comfort of your own home.

In order for shoppers to enjoy this convenience, they will likely need to have a debit or credit card because most online retailers require it as a method of payment for transactions. Hence, if you are planning to do some online shopping while serving your National Service (NS), it is an opportune time to consider getting a debit card.

2. More benefits than ATM cards

Like an ATM card, a debit card allows you to access ATM services and authorise NETS payments using your ATM PIN.

Above and beyond that, a debit card is supported by worldwide payment networks like Mastercard or Visa. This offers the benefit of payment security especially when making online or overseas purchases.

You will also be rewarded for your debit card spending with benefits like cashback and reward points, giving you bang for your buck.

These benefits are usually applicable to both your online and offline spending, allowing you to get rewarded whenever you choose to pay by your debit card.

Read more: Smart ways to manage card security and spending
Find out more about: POSB Save As You Serve (SAYS)

3. A credit card alternative

When you use a credit card, you are essentially using money borrowed from the card issuing organisation or bank. On the other hand, spending charged to your debit card is deducted directly from your linked bank account.

This means that how much you can spend on your debit card is limited by the balance in your bank account, reducing the risk of uncontrolled spending. You’re more likely to think twice about spending on a “want”.

While credit cards undeniably offer more perks, applying for one requires you to meet certain age and income requirements.  On the other hand, to qualify for a debit card, all you need is a current or savings account, and to be at least 16 years old.

Using your debit card allows you to track your expenditures and their categories by viewing your transaction history on DBS digibank mobile or online.

Better yet, the digital financial advisory tool in digibank will automatically sort your expenses by category for you, help you set up a sound budget, and close your money gaps.

With these conveniences in mind, a debit card makes for a worthy alternative to a credit card.

Read more: Knowing the different types of payment cards
Find out more about: Plan with digibank

4. NSF-friendly options

In Singapore, a wide range of debit cards are available, each with its own unique features and benefits. So how do we start choosing one?

A useful strategy is to pick a card that fits your life stage and spending habits. Here are 2 suitable options for full-time NS men who bank with DBS/POSB.

SAFRA DBS Debit Card (if you are enlisted in the Singapore Armed Forces)

The SAFRA DBS Debit Card offers up to 2% cash rebates on your online or contactless payment transactions, exclusive deals at 1,800 merchants, and access to SAFRA Clubhouses and facilities. If you are an NSF, there is no minimum spend required for you to enjoy these benefits.

What’s more, all annual fees are waived as long as you are a SAFRA member!

PAssion POSB Debit Card

The PAssion POSB Debit Card allows you to earn up to 9% cash rebates on your daily spend if you link your card to the yuu App.

With this card, you can also enjoy cashback on selected spending, free PAssion membership along with its privileges, all without having to pay any annual fees on the card!

Apply now!

Now that you know how beneficial using a debit card can be, what are you waiting for?

To apply, login to your digibank app, select More > Apply > Cards or directly from the respective debit cards page.

Ready to start?

Check out digibank to analyse your real-time financial health. The best part is, it’s fuss-free – we automatically work out your money flows and provide money tips.

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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.