Thursday, June 5, 2014

OCBC 365 Credit Card Review



You are probably here if you saw this newspaper article in the newspapers today!

Recently with the launch of the OCBC 360 account, I've woken up and taken notice of OCBC as a rival bank to DBS. Sad to say, but 1 year ago, I don't even think about OCBC or even UOB as a suitable bank for me. I was successfully brainwashed as a POSB/DBS customer, haha!

However, with their OCBC 360 account blowing away and totally destroying all the competition out there, I have to say I am very impressed by it. I did a full review of the OCBC 360 account, and I have to say that thus far, I am very satisfied with my experience with OCBC so far. (It is a current account by the way, it is not a savings account). I have also done a comparison with it against DBS Multiplier and SCB Bonus$aver, and I also did a standalone review of Citibank's InterestPlus account. All these accounts are similar in the sense that they have specific requirements to meet, after which, the bank will give you a bonus interest rate on your deposits. Click around to my older articles to find out more if you're interested!

So curious about how this new OCBC 365 credit card stacks up, I jumped in to do my research. If you visit their website, this is probably what you will see:


Standalone Card

First, I will be reviewing it as a standalone card.

Minimum spend to qualify for rebates - $600
Rebate if minimum spend is not reached - 0.5%

Caltex Petrol - 18.3%
Other petrol - 5%

Telephone Bills (SingTel, StarHub, M1) - 3%
Groceries - 3%
Online Shopping - 3%

Weekend Dining - 6%
Weekday Dining - 3%


Take note of this special info for dining. It is applicable also to fast food outlets and even caterers! However, F&B within hotels are excluded.

And then here is the basic application criteria.


Standalone, this is a great all-round card. You get access to all of the generic OCBC card promotions, you get cashback rebate for some of the most common expenditure that we all have - eating out, groceries, telecomms and of course online shopping. Admit it, if you're searching for a credit card review online, you probably do a fair bit of online shopping!

Comparison to other Cashback Credit Cards

I have to applaud OCBC for finally coming up with a cashback credit card as an offering. Before this, their only offering was the OCBC Frank card that has 6% online spending rebate and 0.5% rebate for all others. Not exactly something to shout about.

*Mistake for the Basic Cashback for the OCBC 365 in the table below, it should be only 0.3%
<-Strictest terms on the left, most relaxed terms on the right->


Basically, I think this stacks up quite well as a mid-range between a very specific rebate card (Citibank Dividend, UOB One) and between the "aiya, just spend, got some cashback" cards (POSB, CIMB).

*Beware of Citibanks Dividend card, your rebate will be in the form of a Citi$, which requires 50 Citi$ to be accumulated, before the rebate will offset your bill. This is definitely not a useful card for people that do not spend a lot on their cards

*UOB One Card requires minimum spend, every month, for that quarter. If you miss a month, you will not get back any rebate. If all 3 months do not have spending in the same tier, you will only get rebates for the lowest tier. Unless you have consistent spending habits, this card could be a challenge to get the quarterly rebate.

In my opinion, the rebates offered by the OCBC 365 card are competitive to the other competitors out there and can be quite cost saving, but only if you main spending falls within those specific categories.

Personal Conclusion

Personally, I use the OCBC Frank Card and the CIMB Platinum Mastercard. The Frank card is very useful for me because actually the majority of my spending is online shopping, which gives me 6% rebate. Using this card as my primary card allows me to easily rack up the $500 monthly minimum spending to get my rebate. (As well as hitting the $400 spend on OCBC credit cards to get the 1% bonus interest of the OCBC 360 account)

I use my CIMB Platinum Mastercard as my backup card and exclusively for overseas spending. It is also a plus that I will get 3.3% bonus rebate on some big ticket items. However, the real selling point for me is that the card has no annual fees, FOR LIFE. It really saves me the hassle, and for that, I reward them with my loyalty!

As much as I like this new OCBC 365 card, I will not be getting it soon because it is not suitable for my current spending habits as a young single bachelor. I earn more rebates through my Frank card. However, for families that eat out a lot and have larger telecomm bills to pay, I can see how this card is useful in providing quite a nice rebate, without forcing you to spend more to receive any of the benefits. I think for people looking for cashback, this is their main concern. They want to get back cold hard cash as a reward for being loyal to a credit card, and to overall reduce their expenditure costs, not increase it! So it is good that if you only spend in these main categories, you can be looking at about 3% off your current bills! Just keep in mind the $600 a month!

Most likely in my life, my next credit card would either likely be the UOB One card or this OCBC 365 card. If only the OCBC Frank online spending promotion wasn't so good, I would use the OCBC 365. Sorry OCBC, not this time around, unless you pull the rug on me for the Frank card, haha!

Disclosure: I use the OCBC Frank and CIMB Platinum Mastercard credit cards for my own personal usage. I do not get any special rebates or fees for mentioning any of these products. This review reflects my own personal understanding and opinion of these products.

11 comments:

  1. Basic Cashback for OCBC 365 = 0.3 % (as shown in screenshot) not 0.5% (standalone card review and the comparison table)
    Personal Conclusion: "rack up the $500 monthly minimum" <- should be $600

    ReplyDelete
    Replies
    1. Thanks for the corrections Anon, I get confused myself about the terms all the time still.

      MH

      Delete
  2. For Frank card, only online purchases earn 6% rebates. All other purchases only earn 0.5% rebates. With so many exclusion for online purchases, how did you chalk up $500 online purchases on this card?

    ReplyDelete
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  4. What are your views on the "revised" benefits starting 1st October 2015.

    http://www.frankbyocbc.com/products/cards/credit-card/

    Thank you.

    ReplyDelete
    Replies
    1. Hi Anon,

      I would ditch and burn the Frank Card.

      I have already applied for and received the 365 cc to migrate my spending to.

      http://gotmoneygothoney.blogspot.sg/2015/09/time-to-ditch-and-burn-new-ocbc-frank.html

      Delete
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