Singapore is a magnet for ultra wealthy individuals. That’s no secret. For those that do have lots of wealth, their options – in terms of financial services – become wider.
That freedom of choice also extends to the credit cards available to ultra wealthy individuals. Known better as “ultra-high net worth”, or UHNW individuals, the credit cards available to them also carry specific benefits.
Meanwhile, regular credit cards are basic credit cards that anyone who is employed (with a minimum annual salary) can typically apply for.
Here are some key differences between these types of credit cards in Singapore.
Ultra-High-Net-Worth Credit Card Requirements
To attract UHNW individuals, banks will typically set the minimum annual income at S$500,000.
That, or they will have to have a minimum amount of assets under management (AUM) with the private banking divisions of the banks.
That allows the banks to then issue credit cards to these individuals that have specific perks. To obtain these credit cards, they will also have to be willing to pay an annual fee. While annual fees can normally be waived on entry-level credit cards, this is not the case for UHNW credit cards.
Hefty Annual Fees But With Rewards
Actually, the annual fees can end up being extremely costly. For example, the DBS Insignia Visa Infinite credit card – for those with at least S$500,000 in annual income – costs S$3,270 per year to maintain. Some banks have UHNW cards with annual fees that cost upwards of S$4,000.
Of course, by paying these fees, cardholders will also receive rewards and privileges. These will range from automatic crediting of 100,000 air miles to priority immigration access as well as complimentary nights at luxury hotels around the world.
Curated experiences are also on offer for cardholders, such as complimentary rounds of golf or being able to utilise a concierge service to help book reservations at Michelin-starred restaurants around the world.
How Do These Differ From Regular Cards In Singapore?
In terms of regular credit cards in Singapore, the entry-level cards typically have a minimum income requirement of S$30,000 per year.
For most working adults, that should be an achievable amount and these credit cards can (in fact) have great benefits.
One of the key difference between regular credit cards and UHNW credit cards is – clearly – the hefty annual fee that’s payable for the latter. There are also the exclusive perks and free gifts, which don’t come with regular credit cards.
Beyond that, though, regular credit cards can often have better earn rates – for air miles – on your credit card spend. For example, the UOB Reserve Card – a card for those with a minimum annual income of S$500,000 – gives cardholders 1.6 air miles per dollar of spend in SGD and 2.4 miles per dollar on overseas spend (FCY).
However, that’s very similar to the UOB PRVI Miles card – a regular entry-level card – that provides cardholders with 1.4 miles per dollar for SGD spent and 2.4 miles per dollar for overseas spend. Additionally, the UOB PRVI Miles card also gives holders 3 miles per dollar of spend on THB, MYR, IDR, and VND transactions.
But other entry-level UOB cards can actually beat the UOB Reserve card, with some UOB entry-level cards giving users the ability to earn 4 miles per dollar, although this rate is typically capped at between S$1,000 and S$2,000 of spending per month. Even if cardholders are expected to pay annual fees on these cards, they will normally be around the S$200 mark.
When To Get An Ultra-High-Net-Worth Credit Card?
Besides the obvious perks, getting a UHNW card implies having to reach a certain annual income threshold for the banks to consider individuals as potential applicants.
For most individuals, though, the earn rate for regular credit cards may be just as good, if not better than these premium cards.
It’s also important to remember that in between the entry-level and UHNW cards, there’s another card segment named the “S$120k” segment, given the annual income requirement.
At this level, cards also come with mandatory annual fees but they are much less (around S$500 to S$700) but the benefits can include things such as unlimited lounge access, complimentary airport transfers, and some special hotel/dining privileges.
For most people who don’t want to have to pay annual fees, regular credit cards will suffice but obtaining an UHNW credit card will depend on what value you deem to extract from it. If you do qualify for one of these cards, then the decision on whether it makes sense to apply for one is a personal one.
Read Also: Insights: Levelling The Playing Field: How AI Is Democratising The Financial “Superpowers” Of The Ultra-Rich
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