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Change to Credit Card Interest Calculation


Effective from 30 July 2018, there will be a change in the interest calculation method on all Credit Card account(s), including credit card funds transfers and accounts opened for instalment repayment on the following products: Credit Card Instalment Loan, Personal Loan and Automatic Payment Scheme on Platinum Access Credit Cards except Debt Consolidation Plan.

 

Interest is charged if the total outstanding balance is not paid in full by the payment due date.

 

PRIOR TO  30 JULY 2018

(OUTSTANDING BALANCE THAT WILL INCUR

INTEREST)

FROM 30 JULY 2018
 

(OUTSTANDING BALANCE THAT WILL INCUR INTEREST)

Principal amount + Fees & Charges + InterestPrincipal amount + Fees & Charges


The scenarios below are for illustration purposes only and may differ depending on the individual’s account.


Scenario 1: CLIENT MAKES FULL PAYMENT
 

PRIOR TO 30 JULY 2018FROM 30 JULY 2018
Statement

Cycle

Statement BalanceStatement

Cycle

Statement Balance
Month 1(Principal amount + Fees & Charges) + Interest

($10,000 + $0 ) + $0

Client makes $10,000 payment by payment due date.

Month 1(Principal amount + Fees & Charges) + Interest

($10,000 + $0) + $0

Client makes $10,000 payment by payment due date.

Month 2$0Month 2$0

 

In Scenario 1, client is not affected by the revision of credit card interest calculation.
 

Scenario 2: CLIENT MAKES MINIMUM PAYMENT DUE OR LESS THAN MINIMUM PAYMENT DUE WITH NO NEW SPEND
 

For illustration purposes, client makes less than minimum payment due amount on the payment due date. With this revision, the interest incurred is lower.
 

PRIOR TO 30 JULY 2018FROM 30 JULY 2018
Statement

Cycle

Statement BalanceStatement CycleStatement Balance
Month 1(Principal amount + Fees & Charges) + Interest
($10,000 + $0) + $600
MPD=$700
Client makes $50 payment on payment due date.		Month 1(Principal amount + Fees & Charges) + Interest
($10,000 + $0) + $600
MPD=$700
Client makes $50 payment on payment due date.
Month 2(Principal amount + Fees & Charges) + Interest
($10,000 + $80) + $777.06Interest = Current month interest on (principal amount + Fee) + (Unpaid interest from previous month + interest on unpaid interest from previous month)
$777.06 = $214.58 + ($550 + $12.48)		Month 2(Principal amount + Fees & Charges) + Interest
($10,000 + $80) + $764.58Interest = Current month interest on (principal amount + Fee) + Unpaid interest from previous month$764.58 = $214.58 + $550

 

  • Payment due date PDD is assumed to be on 22nd day of the month

FAQs

The bank conducts periodic reviews on our products and may revise the relevant terms and conditions  to create a better banking experience. With the revision of credit card interest calculation, the interest incurred by clients will be lower.

This revision will only impact you if you do not make full payment of the total outstanding balance by the payment due date as indicated on your statement.

With effect from 31 July 2018, if you do not make full payment of the total outstanding balance by the payment due date as indicated on your monthly statement, interest will only be applied to your outstanding balance, fees and charges excluding previous interest.