POSB Everyday Card currently markets itself with up to 15% cashback on online food delivery, and such an outrageous cashback number is bound to raise a few eyebrows and a healthy sense of scepticism. Is it a cashback card worth looking at now that we use food deliveries more?
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|Type||Conditional cashback card|
|Earn Rate||– 15% on online food delivery*|
– 6% cashback on SPC
– 1% on utility bills
– 5% on Sheng Siong
– 3% on Watsons/Pet Lovers Centre
|Conditions||Read the article|
Most conditional cards have conditions that are somewhat easy to follow. For instance, Maybank FnF gives you 5% or 8% cashback on fast food, groceries, transport etc. DBS LiveFresh gives you 5% if you spend online or via PayWave. UOB One requires you to maintain a certain level of spending for three consecutive months for 3.33% or 5% cashback.
POSB Everyday, on the other hand, has a wide range of cashback percentages, from a paltry 1% on utility bills to a supposed 15% cashback on dining, along with a whole bunch of really specific merchants rather than more general categories.
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Good: 5% for Sheng Siong, 6% for SPC Petrol
If you are someone who shops regularly at Sheng Siong and/or refuel at SPC, this card is pretty good for you, being one of the rare few high-earn cashback cards without any minimum spending. Maybank FnF requires $500 or $800 to get 5% or 8%, and LiveFresh requires $600 a month.
Fair: 3% on Watson’s
3% cashback without a minimum spend is decent, but again, this is dependent on shopping often at Watson’s.
Bad: 1% on utilities, 3% on Pets Lovers Centre
1% is a really horrible rate, even for unconditional cards. You could easily get 1.5% to 2% cashback (eg SC Unlimited, Spree) without any minimum spend, or 3 to 5% with conditional cards like OCBC 365 or UOB One.
Pet Lovers Centre is a niche category, and even for someone like me who does shop at PLC, it’s an entirely useless card since it doesn’t stack with PLC’s VIP discounts which is quite substantial.
It depends: 15% on online food delivery
Conditional cashback cards prescribe a fixed amount of minimum spending per month in order to earn a high cashback rate. POSB Everyday takes this further with its current headlining feature of 15% cashback on online food delivery by specifying the minimum spend each month, rather than fixing it.
An example I’ve seen would be to spend $200 for $10 of capped rebate on food deliveries. I have also seen spend $600 for $30 of capped rebate.
For “$200 for $10” This means that in order to maximise your cashback rate of 15% on food deliveries, you could order $67 worth of food deliveries, and spend the rest elsewhere. Is this great? Well, if you managed to spend $67 on food deliveries and the remaining $133 on SPC Petrol, you would get a total of $18 of cashback, which translates into a 9% effective cashback on $200 of spend.
If you spend all $200 on food deliveries, your true cashback yield is only 5%.
This means that if you wish to get the card’s optimal cashback rate, you have to do a bit of work trying to work your spending into the monthly spending targets you get, and it’s subject to change which makes it impossible to have a routine amount of spend on it each month like you can with other conditional cards.
As an “everyday card” to get high cashback on things like groceries and petrol, the POSB Everyday card doesn’t live up to its name. Even after you reach its optimal cashback rate, it is not that much different from Maybank Family and Friends which is far easier to get a high cashback rate.
If you want to get higher cashback on food deliveries, there are other cards that would serve that purpose better.
The only silver lining is that it would give you a decent cashback rate without any minimum spend for Sheng Siong and SPC, but if you already have other conditional cashback cards and have a routine amount of spend clocked on them each month, it’s rather difficult to find a place for POSB Everyday.
- Decent cashback without minimum spend for Sheng Siong, SPC, and Watson’s
- High potential cashback yield if optimised
- Poor cashback rate for utilities
- 15% cashback category is diluted by having minimum spend
- Difficult to optimise for
- Spending effort to optimise your spend only to find that it’s not much better than easier-to-use cards
★ ★ ★ ★ ★ ☆ ☆ ☆ ☆ ☆
5 Stars of Sethisfaction
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