4 Types Of Fees Singaporeans Should Not Be Paying

[pewtercatfella]

By Dinesh Dayani | DollarsAndSense.sg 

 

Singaporeans are affluent and busy people. Many times, we end up either not having time to check through our bills or just trusting that everything is in order. The matter of the fact is that service providers, existing for the sole purpose of profiting usually, will always be incentivised to work in fees into their packages to ensure they extract the maximum value from a customer.

Checking our bills every month may be hasslesome, but it take a few short minutes. Further, the accumulation of fees adds up to a substantial amount if gone unchecked for long periods.

Here are four types of common fees that every Singaporean will face at some point of their life.

1. Credit Card Fees

Credit cards have been created to keep people in debt and spend more than we can. Without doing so, credit card companies will never be successful. So working in additional fees and creating “better” features will only ever serve to keep you in debt. With that being said, here are some credit card fees to watch out for

i. Annual Fees

Credit card companies charge annual fees to ensure anyone not keeping tabs on their spending will automatically lose reward points or actually pay it as part of their monthly payment to the company.

ii. Late Payment Fees

They also have strange ways to compute which day you have to repay your bill by. It’s never the same so be sure to look at the due date and pay your bills before then. Interest charges are scary at over 24% and this does not even include the late payment charge.

iii. Delayed Payment Fees

Many credit cards offer its customers the option of only having to pay $50 or a certain percentage of their bill each month. What customers do not know is that fees have been built into this method of payment either through preferred interest rates (which are still scary) or a processing fee which is charged as a percentage of the amount. These fees are also applicable when you transfer balances from another card.

2. Banking Fees

The lines are a bit blurred when I mention banking fees since most banks also offer credit cards. But we’ll stick to pure banking fees here. So in addition to the fees they collect on credit cards, banks also profit through these other fees.Minimum Amount Fees

i. Minimum Amount Fees

Many banks require you to keep a minimum balance, usually $500, in your account each month. Failing to do so will activate a fee of approximately $2. However, this is for savings accounts, note that there are also minimum fees for current accounts that require much higher fees and much higher minimum balances.

As a side note, some current accounts also charge fees for their cheque books.

ii. Short Term Borrowing Fees

Advertised as a quick and easy way to get instant cash, often within a few hours of application. Fees for such are very prevalent and are in addition to the interest rates charged.

3. Early Termination Fees

Once a company has tied you down to a contract, you can be sure they will fight tooth and nail to make you pay for it. Even when we experience the shameful Singtel TV outage, we had to continue paying for the service. And their discount was given on goodwill rather than an obligation.

We’ll leave the debate on how fair this system is, and how big companies can bully consumers without the government intervening. And when the government intervenes, you’ll know that the situation has really been atrocious.

i. Insurance

Insurance companies are another financial institution that exists only to profit. They profit by offering consumers insurance, this is not a public service they are doing, they are profiting, and if they don’t do it, someone else will. Of course then, once you sign a contract, usually for the next quarter of a decade, you’re pretty much locked with them.

At this point, it should be highlighted that we think you should think hard about any decision regarding insurance when you sign up. It will affect you for a very very long time.

ii. Telcos

As mentioned in the opening paragraph, you can’t back out even when you’re being offered a terrible deal. You’ve signed up for it. This is far more acceptable, or so people think, because it only locks you up for 2 years at a go. Nevertheless, you should consider your decision carefully before signing up. There are always other options, like not watching TV and being more productive and using pre-paid cards.

iii. Mortgages

Another way banks can earn money from customers. The logic is that banks have already “locked in” a certain amount of interest income that you will pay them, and if you want to back out, you have to cough up for it. This is actually the most fair of the fees they charge. Nevertheless, it’s an additional fee for us to consider when determining how fast or slow we can pay back our mortgages.

iv. Almost Anything Else

Same logic applies. When you sign up for a deal, you’re going to be held ransom to that signature. Think before signing for any service. Some common ones are gym membership.

4. Convenience/ Booking Fees

This type of fees is cringe-worthy, mostly because it’s term “convenience” when most consumers are being inconvenienced.

i. Movie tickets

There are ways booking fees when booking tickets online or through mobile apps. Golden Village ($2), Filmgarde ($1) and Cathay ($1.50) all have these fees.

ii. Budget Airlines

Usually ranging from $16 to $20, these fees put additional revenue in budget airlines’ pockets for seemingly no reason whatsoever. Some, like Jetstar, offer free payment options via Singpost or 7-11 outlets. We say, why not reward the airlines that offer better deals for their customers. Help them make up for it with greater revenues. They deserve it.

iii. Many Other Services

We can list down everything under the sun, but the basic premise is that service providers will try to take more money, every possible way, this includes services offering you convenient methods to top up your EZ link card via mobile apps or with credit cards (under $1).

In Summary

You will have to decide for yourself what fees are acceptable and what fees are not. If you ask us, we will try to cut out all the fees, as the additional headache will be rewarded in the form of huge savings over our lifetimes. Sometimes, all it takes is a phone call, and other times, we have to be a little more firm. Regardless, we think everyone can adjust their lifestyles to not have to pay these kinds of fees.

 

https://sg.finance.yahoo.com/news/4-types-fees-singaporeans-not-003015173.html

[Mockngbrd]

Service charges at restoran

[Shibadog]

fee for new (ERP) IU when existing one spoils.

[Spring]

I would add the Rule 78 fees and since we are on this topic, the way car loans in general are calculated though this is not fees per se.

 

I don't in general begrudge a certain form of penalty when you early terminate a car loan cos afterall borrower did not fulfill his side of the agreement by paying up earlier than the agreed tenor for various reasons normally, to sell off the car. But the way it is calculated pisses me off.

 

1) It should follow normal housing loans methodology ie reducing interest as we pay off monthly instead of the flat rate on full principal currently being practised.

2) Rule 78 should be abolished as it's in favour of the lender. Fairer way should be for borrower to pay penalty at Original loan rate minus current deposit rate x remaining period. Effectively this means lender will not lose out but certainly he should not benefit from this which Rule 78 currently does.

3) Some banks charge an admin fee on top of rule 78 when car loans are early terminated. This too is unnecessary.

 

Sorry if out of topic as I know the thread is on fees in general but my point is since we talking about fees Singaporeans should avoid, the above is a good reminder to us but unfortunately as always, we borrowers are at the mercy of the banks who made the rules heavily tilted in their favour!!

Edited January 27, 2016 by Spring

[Celicar]

Please lor admin fees by car dealers should be right up there.

[BanCoe]

I can live with 1) 2) & 3) as they are hardly ever charged and it sort of creates a disciple and never had any problems so far ; Especially in a telco/insurance situation everyone starts jumping around how will they work ?? , everyone needs to make a profit so since you Contract it you should be responsible for it , after all number porting is allowed by IDA after you finish the contract you can move over

 

Anual Credit card fees; every year same thing key in the card number on telephone and 99% they reverse it .... just a waste of my time  

 

4) is the hantu hantu fee; especially with the budget airlines and purposely by default put in the Insurance and Baggage fees/ Convenience fees ; and for movies it can be almost like 13-20% of your ticket cost!! so thats a No No for sure; just charge maybe 3-4% to cover the cost of the terminal or card fees is fine ; also even for oveseas carriers or purchases even though in SGD they charge me finally another 0.5-1% extra , even Groupon also too

 

My $0.02 of inputs 

  

Edited January 27, 2016 by BanCoe

[Gitanic]

1. income tax
2. property tax
3. coe
4. gst

 

what do you think?

[BanCoe]

 

1. income tax
2. property tax
3. coe
4. gst

 

what do you think?

 

We got any Arab donor or oil in our backyard?? 

Of course I consperm agree with your 3). 

[Toothiewabbit]

 

• income tax
• property tax
• coe
• gst

what do you think?

Property tax - especially everyone here hab orleadie fully paid for the propert(ies), right right, MCFers?

[Evillusion]

Property tax - especially everyone here hab orleadie fully paid for the propert(ies), right right, MCFers?

you must remind me to pay my property tax right!       .....Gong Xi Fa Cai in advance ya!

[Toothiewabbit]

you must remind me to pay my property tax right! .....Gong Xi Fa Cai in advance ya!

Jit Tong Chiang!!!

 

Welcum back Bro!!!

[1fast1]

Speaking of ticket booking, I think it's outrageous that they charge you for the convenience yet expect you to physically pick up the ticket there or at least at an AXS machine. Neither of which are highly convenient options.

 

The correct solution is to either let you print out your actual ticket at home or even let you present a phone eticket with a code or something to the usher who will let you straight in.

 

I get the sneaking feeling they make you come to the box office just to tempt you to buy their overpriced pop corn.

Edited January 27, 2016 by Turboflat4

[Evillusion]

Jit Tong Chiang!!!

 

Welcum back Bro!!!

hahaha....back for the new year!     Will come back again nx year GodWilling!

[Toothiewabbit]

hahaha....back for the new year! Will come back again nx year GodWilling!

Alrighty! Take good care Bro!

[Wt_know]

only 1 fee that i'm sibei dulan to pay ... ERP !

pay COE liao still got ERP and suka suka can up ERP ... smlj

Edited January 27, 2016 by Wt_know

[Evillusion]

Alrighty! Take good care Bro!

you too....btw....i still look see look see this forum!  

cb...lar u all! people talk about fees you all talk about tax...nb! 1 is for service and the other is to pay the gov for doing nothing,,,,,hahaha!

[Kangadrool]

The most outrages fee in ocean shipping is B/L fee, D/O fee; in sea freight forwarding: agency fee, D/O fee, forklift charges, tracing fee.......................................................................

 

And B/L and D/O fee is the highest in the world, higher than those in advanced countries like USA, EU, Japan while you get shitty outsourced services in some slums.

 

B/L is like a receipt (on a A4 sized paper) for your cargoes loaded onboard, our birth rights to it after paying up the freight. Would you love merchants to levy receipt fee of $130 for your shopping spree?

 

You add up all the fees, it is higher than ocean freight. 

Edited January 27, 2016 by Kangadrool

[Sunny]

Bestest our toothless tiger asking for a fee before file consumer complaints