Running low on extra cash before payday? A cash advance might seem like a quick solution—but is it really worth the cost? With just a credit card, you can withdraw cash instantly, but high fees and steep interest rates can turn a short-term fix into a long-term burden. Even with government aid like CDC vouchers and cash payouts, some Singaporeans still rely on cash advances to cover urgent expenses.
What many don’t realize is that cash advances come with immediate interest, hefty transaction fees, and no repayment flexibility. If not managed wisely, they can trap you in costly debt. Before you take one, it’s crucial to know how they work, their true cost, and better alternatives.
This guide covers everything about cash advances in Singapore—fees, withdrawal limits, and smarter borrowing options—so you can make an informed decision.
What Is a Credit Card Cash Advance?
In a nutshell, a cash advance from a credit card is a short-term loan that you can access directly from your credit card. This means, you can access physical cash on hand so you can make your purchases without using your credit card as a payment–especially on establishments that don’t accept cards.
Unlike regular credit card purchases, which give you a grace period before interest kicks in, cash advances start accumulating interest immediately, making them one of the most expensive ways to borrow money.
Credit card cash advances can be a viable option for those who need to have a certain amount of cash immediately. This works great on emergencies, and for purchases that could not be paid for using your savings account or your checking account.
To understand how a cash advance compares to other credit options, here’s a breakdown:
| Feature | Cash Advance | Personal Loan | Credit Card Purchase |
| Approval Needed? | No, instant access | Yes, requires application | No, automatic approval for transactions |
| Interest Rate | High (typically 28-29% p.a.) | Lower (3-10% p.a.) | 0% if full payment is made within grace period |
| Fees | 6-8% of withdrawal amount (min. S$15) | Possible processing fee | No additional fees if paid on time |
| Repayment Plan | No structured plan | Fixed monthly installments | Flexible, full or minimum payments |
| When to Use | Emergencies, urgent cash needs | Large expenses, debt consolidation | Everyday purchases, bill payments |
How Does a Cash Advance Work?
A cash advance allows you to withdraw cash using your credit card, but the process varies depending on your bank and withdrawal method. Here’s a step-by-step guide:
Ways to Withdraw a Cash Advance
1. ATM Withdrawal
- Insert your credit card into an ATM.
- Enter your credit card PIN (not your debit card PIN).
- Select “Cash Advance” and enter the amount.
- Withdraw the cash and take your receipt.
2. Over-the-Counter at a Bank
- Visit your bank’s branch with your credit card and ID.
- Request a cash advance withdrawal.
- Sign for authorization and receive the cash.
3. Online Banking or Mobile App (Available for some banks)
- Log into your bank’s online portal or app.
- Navigate to Cash Advance Services.
- Request a withdrawal to your bank account.
Activation Requirements
Some banks disable the cash advance feature by default to prevent fraud. If you’ve never used a cash advance before, you may need to activate it through:
- Online banking settings
- Your bank’s mobile app
- A call to customer service
Before withdrawing, check your cash advance limit, other fees, and interest rates to avoid unexpected costs.
Cash Advance Limits in Singapore
The amount you can withdraw through a cash advance depends on your bank’s policies, your credit limit, and daily maximum withdrawal restrictions. Most banks cap cash advances at a percentage of your credit limit or a fixed amount.
Here’s a comparison of cash advance limits across major banks in Singapore:
| Bank | Maximum Cash Advance Limit | Daily ATM Cash Withdrawal Limit |
| DBS | S$5,000 | S$3,000 |
| Standard Chartered | Subject to credit limit | S$4,000 |
| CIMB | Not specified | Not specified |
| Citibank | Up to 4x monthly income | Not specified |
| Maybank | Not specified | Not specified |
| OCBC | Varies by credit limit | Not specified |
How Much Can You Withdraw?
- Fixed Cap: Some banks, like DBS and Standard Chartered, set specific withdrawal limits.
- Credit Limit-Based: Others, like Citibank, allow cash advances up to four times your monthly income, depending on eligibility.
- Daily ATM Limits: If withdrawing from an ATM, limits range from S$3,000 to S$4,000 per day, depending on the bank.
Before taking a cash advance, check your available credit limit and withdrawal cap to avoid declined transactions or additional fees.
Fees & Interest Rates: Understanding the True Cost
A cash advance is one of the most expensive ways to borrow money due to its high transaction fees and interest rates. Unlike regular credit card purchases, which have an interest-free grace period, cash advances start accruing interest on a daily basis—meaning costs can add up quickly.
Bank-Specific Fees & Interest Rates
Every bank in Singapore charges a fixed transaction fee and a high annual interest rate on cash advances. Here’s how they compare:
| Bank | Transaction Fee | Interest Rate (p.a.) |
| DBS | 8% or S$15 (whichever is greater) | 28.50% |
| Standard Chartered | 8% or S$15 (whichever is greater) | 27.90% |
| CIMB | 8% or S$15 (whichever is greater) | 27.80% |
| Citibank | 8% or S$15 (whichever is greater) | 28% |
| Maybank | 8% or S$15 (whichever is greater) | 28.50% |
| OCBC | 8% or S$15 (whichever is greater) | 28.92% |
Why Cash Advances Are So Expensive
1. High Transaction Fees: Every withdrawal immediately incurs a charge of 8% or at least S$15, whichever is higher.
2. Steep Interest Rates: Most banks charge between 27.8% and 28.92% per year, significantly higher than personal loans.
3. Immediate Interest Accrual: Unlike purchases, which allow up to 25 days of interest-free repayment, cash advances start accruing interest from the moment you withdraw.
Sample Computation: How Much Would a Cash Advance Cost?
To better understand the perspective being made when getting a cash advance from your card, let’s picture out a sample computation.
Let’s say you would want to make a purchase using cash, and have taken out money from your credit card. The following fees and charges would automatically apply:
- Cash advance annual percentage rate (also called as APR): 29% per annum
- Cash advance fee: 6% of the total transaction cost, or S$15–whichever is higher
Now let’s assume that you withdrew S$1,500 cash on the first day of your billing cycle, your initial added costs would be the following:
- Cash advance rate: S$90 on top of your borrowed money
- TOTAL cost: S$1,590
Remember that those are just your initial costs. This cash advance transaction will accrue an interest rate of 29% per annum and starts from the date where you made the cash advance.
Now if within 30 calendar days you have failed to make the payment, your interest charge on top of the fees stated above would be S$36.
At this time, you should be able to imagine the high costs you have made in your first month just to get your cash advance amount. At this point, you would have already paid S$126.
If you have failed to pay for your borrowed cash in 6 months, this would mean you’d pay 17% worth of interest, making you pay S$1500 plus S$320. That is more than 1/4 of your borrowed money.
Pros and Cons of Using a Cash Advance
While there are certain advantages for a credit card cash advance, know that there are some cons that you should know about as well. Let’s read those into detail:
Pros
- There is no approval process necessary when accessing cash. As long as you own a credit card, you can get cash very much as quickly as you can imagine.
- Another pro when getting your cash advances from your credit card is that you can pay this back as soon as possible.
Cons
- Because of convenience and relatively high risks, cash advances from credit card companies are highly expensive.
- A cash advance transaction made from credit cards have a maximum cash advance amount, and is only up to a couple thousand dollars.
It is important to note that a cash advance made through a credit card is different from using your ATM debit card. With a debit ATM card, you can withdraw cash from your account and is usually free of charge.
If there is not enough money in the account, however, your payment transaction will get declined. In contrast, a credit card can give you cash advances as long as you have not gone over your available credit limit.
Alternative Options: Cheaper Ways to Get Cash
A cash advance isn’t your only option when you need money quickly. There are alternatives that offer lower interest rates, structured repayments, and fewer fees. Here’s a look at better ways to borrow cash in Singapore.
1. Personal Loans vs. Cash Advances – Which is Cheaper?
Personal loans offer significantly lower interest rates (as low as 2.68% p.a.), compared to the 28-29% p.a. charged on cash advances. They also come with structured repayments, making them more affordable in the long run.
| Bank | Personal Loan Interest Rate (p.a.) | Processing Fee | Loan Amount |
| DBS | From 2.68% | 1.00% | Up to 10x salary |
| Standard Chartered | 2.88% | S$199 | Up to S$250,000 |
| UOB | 2.88% | 0% (waived) | Up to S$999,999 |
| CIMB | 2.80% | 1% | From S$30,000 |
| Citibank | 3.45% | No fees | Up to 8x salary |
| HSBC | 2.92% | No fees | Up to 8x salary |
Verdict: If you can wait a few days for approval, a personal loan is a much cheaper alternative to a cash advance
2. Balance Transfer Credit Cards – Lower Interest, Flexible Repayment
A balance transfer lets you move your outstanding credit card debt to a new bank at 0% interest for 6-12 months. This is ideal for repaying debt more affordably compared to a cash advance.
| Bank | 6-Month Balance Transfer | 12-Month Balance Transfer |
| Standard Chartered | 0% interest + 2.5% fee | 0% interest + 4.5% fee |
| Citibank | 0% interest + 2.5% fee | 0% interest + 4.5% fee |
| UOB | 0% interest + 2.5% fee | 0% interest + 4.28% fee |
| OCBC | 0% interest + 2.5% fee | 0% interest + 4.5% fee |
| HSBC | 0% interest + 2.5% fee | 0% interest + 4.88% fee |
Verdict: If you need time to repay your debt without high interest, a balance transfer credit card is a smarter alternative.
3. Borrowing from Licensed Moneylenders
If you don’t qualify for a bank loan, licensed moneylenders in Singapore provide regulated, short-term loans with interest rates capped at 4% per month. While this is still high, it’s much lower than a 28%+ cash advance. Always check the Ministry of Law’s Registry of Moneylenders to ensure you’re borrowing from a legal lender.
Comparison Table: Best Alternatives vs. Cash Advance
| Feature | Cash Advance | Personal Loan | Balance Transfer | Licensed Moneylender |
| Interest Rate (p.a.) | 28-29% | 2.68-5.42% | 0% (for 6-12 months) | 48% max (4% per month) |
| Fees | 8% or min. S$15 | 0-2% | 2.5-4.5% processing fee | Varies |
| Approval Time | Instant | 1-3 days | 1-5 days | Same day |
| Best For | Emergencies, instant cash cash | Large expenses, structured repayment | Debt consolidation, lower interest | Short-term borrowing if banks reject you |
While a cash advance is fast, it’s also the most expensive borrowing option. If possible, consider a personal loan, balance transfer, or licensed moneylender for a cheaper, more structured way to borrow money.
How to Apply for a Cash Advance in Singapore
Getting a cash advance is simple, but it’s important to check if your bank requires activation before withdrawing. Follow these steps based on your preferred method:
1. ATM Withdrawal (Most Common Method)
- Insert your credit card into the ATM.
- Enter your credit card PIN (not your debit PIN).
- Select “Cash Advance” from the menu.
- Enter the amount you wish to withdraw.
- Confirm the transaction and collect your cash.
2. Online Banking or Mobile App (Available for Some Banks)
- Log in to your bank’s online portal or mobile app.
- Navigate to the “Cash Advance” or “Credit Card Services” section.
- Select the amount and confirm the withdrawal to your linked account.
3. Over-the-Counter at a Bank (For Higher Amounts)
- Visit a bank branch with your credit card and NRIC/passport.
- Request a cash advance withdrawal from a bank teller.
- Sign the authorization form and receive your cash.
Checking If Cash Advance is Enabled (NEW)
Some banks disable cash advance features by default to prevent fraud. You can enable it via:
- Online banking settings
- Your bank’s mobile app
- Calling customer service
Documents Required
- Credit card (must be active)
- NRIC or passport (for in-person withdrawals)
- Bank app login details (for online withdrawals)
Always check your withdrawal limit and fees before proceeding to avoid unexpected charges.
Conclusion
A cash advance may provide quick cash, but its high costs and immediate interest make it one of the most expensive borrowing options. Before taking one, it’s crucial to weigh the fees, repayment terms, and more affordable alternatives like personal loans or balance transfers. Understanding all available options will help you make a smarter financial decision and avoid unnecessary debt.
Key Takeaways:
- Cash advances come with high fees (8% or at least S$15) and interest rates of up to 28.92% p.a., with no grace period, making them one of the costliest ways to borrow money.
- Personal loans (as low as 2.68% p.a.) and balance transfers (0% interest for up to 12 months) offer cheaper, structured repayment options, making them smarter choices for cash needs.
- Some banks disable cash advances by default for security reasons, requiring customers to enable the feature via online banking, mobile apps, or customer service before withdrawing cash.
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