I don’t know about you, but when I buy pricey items, I usually agonise over it for a while before buying, and I have to ensure I tick the boxes off my mental checklist of a) my finances are in order b) do I really need it? c) are there any alternative ways to pay for it in a way that I’m managing my finances well?
However, some purchases just can’t wait, such as a new laptop to help you work more efficiently from home, or if your old laptop is literally breaking down. Or you may need a new fridge if your existing one seems like it will give out soon.
Sometimes, your purchase is also for self-improvement or protection — remember that online course or insurance purchase you’ve been postponing because you haven’t saved up enough?
For better money management, consider splitting up your payments
Now, even if I have $10,000 in my bank account, I may not want to spend a lump sum of $1,900 on a new MacBook Pro laptop.
Yes, I have enough savings to pay for it immediately; but to me, it makes more financial sense (and better money management on my part) to see if there’s a way to split up the $1,900 into smaller instalments, spread out over a 6- to 12-month period — especially when I don’t have to incur any additional fees or charges.
I might be earning interest on the $10,000 in my savings account that would be lost if I took out a chunk to pay for my new laptop. Alternatively, I might be thinking of investing that money, which could generate higher returns over the long run.
In addition, this $10,000 might be funds that I’m saving up for another purpose — such as a long-awaited family holiday. By spending $1,900 in one go, I would have instantly depleted 19% of the funds I had set aside.
Assuming I take up an interest-free instalment payment plan, here’s what I would be paying:
| Tenure of DBS Payment Plan | Cash out each month |
| 6 months | $316.67 |
| 12 months | $158.33 |
This would definitely give me better cash flow each month, while still ensuring that I can make the purchase without worrying so much about my finances.
The key is to look for an interest-free instalment plan — no worries if the store doesn’t extend such a plan to you; DBS/POSB Credit Cardmembers can split their payments into interest-free monthly instalments via DBS Payment Plans.
About DBS Payment Plans
With DBS Payment Plans, DBS/POSB Credit Cardmembers have these benefits:
- Split big purchases into smaller repayments
- 0% interest, up to 6 months
- Choose from flexible payments over 3, 6, 12, 18 or 24 months (processing fees may apply)
- Application: Direct at participating merchants or through digibank mobile/online
Seeing how DBS has been with me since my kiddy years, I’d feel secure trusting the bank to help me split up my larger payments into smaller instalments. DBS was also named Asia’s Safest Bank for a decade.
Here’s a quick comparison of how DBS Payment Plans versus other post-purchase payment plans out there:
| Product | Interest/fee | Tenure | Where can I use it? |
| DBS Payment Plans | 0% | 3/6 months | Selected merchants, and on any DBS/POSB Credit Card purchase |
| Payment Plans from other banks | 3% to 5% | 3/6/12 months | Selected merchants |
| Hoolah (new player / non-bank) | 0% | 3 months only | Selected merchants |
| Rely (new player / non-bank) | 0% | 4 fortnightly payments or 3 monthly instalments | Selected merchants |
| Merchant payment plans | 0% | Up to 36 months, only if you have a specific bank’s credit card | Selected merchants |
What can I use DBS Payment Plans for?
Apart from tangible products, the nice thing about DBS Payment Plans is that it can be used for a multitude of products and services — some we didn’t even realise we can pay in instalments for!
These include:
- Home furnishings
- Automotive
- Beauty and wellness
- Electronics and computers
- Fashion and accessories
- Jewellery and watches
- Medical and dental
- Educational fees
- Insurance premiums
- Tax deductions / Income tax
- Travel
- Other unexpected expenses
How to make a purchase with DBS Payment Plans
There are a few ways to activate DBS Payment Plans, whether you are shopping at a merchant or just want to convert transactions on your DBS/POSB credit card into more manageable instalments.
1. Activating DBS Payment Plans with a merchant (currently accepted at over 800 merchants islandwide)
A) If at a physical store, ask the cashier for DBS Payment Plans
B) If shopping online, select DBS Payment Plans and tenure
2. Activating DBS Payment Plans for DBS/POSB credit card transactions
A) Go to digibank mobile/online and choose “Pay by instalments”
B) Select up to 10 transactions (any merchant) in your credit card accounts
C) Convert them into 0% interest instalments, on your credit card
With DBS Payment Plans, let’s not put off important purchases due to budget concerns. Being able to split up payments into more manageable interest-free instalments helps us manage more, and worry less.
From now till 30 Sept 2020, get up to S$40 cash rebate when you take up 3 DBS Payment Plans (min. S$1,000 per plan split across 12 to 24 months). Other T&Cs apply.
Related articles
DBS Multiplier Account Review & 2020 T&C Changes — Is It Still Worth Signing Up For?
5 Ways DBS NAV Planner Can Help You Improve Your Financial Health in 2020
POSB/DBS Personal Loan Review: Interest Rates, Approval Times & Loan Amounts