Save, Invest and Spend – as a reader of our blog, you probably already do these on a regular basis. But what if there’s a way to simplify the process…and get rewarded while you’re at it?
Imagine receiving your dividends from Sheng Siong (SGX: OV8) the night before and using them to pay for your fresh grouper at the Sheng Siong in your neighbourhood the next day.
No need to log into your account, generate an OTP and withdraw your money. Just tap your debit card. Plus, you get some cashback for doing that too! Now that’s truly living on your dividends. ????
Sounds convenient?
Let’s explore 3 popular investment-linked debit cards to decide if they are really as good as they sound:
| Tiger BOSS Debit Card | iFast Global Markets (iGM) Debit Card | HugoSave Debit Card | |
|---|---|---|---|
| Why Consider? | Earn fractional Tesla shares as you spend. (1% off eligible transactions) | Ability to spend the funds in your iFast brokerage account, and earn 1% cashback. | Save and invest by rounding up your expenses. Invest while you spend. |
| Annual Fees | No | No | No |
| Transaction Fees | No | No | No |
| Other Fees | Currency Conversion fee applies. ATM Cash Withdrawals: SGD5 admin fee + 2% service fee per transaction. |
Declined transaction fee applies where transactions are rejected due to insufficient balance. Exchange rates are offered by counterparties or vendors. |
Roundups Buys: Free 0.5% Management Fee 0.5% Transaction Fee when you sell positions |
| Types of Transactions | ✅VISA card transactions. ✅Contactless payments (Apple Pay, Google Pay) ✅ATM withdrawals |
✅Mastercard transactions. ✅Contactless payments (Google Pay) – Limited to Android devices only!❌ATM withdrawals |
✅VISA card transactions. ❌Contactless payments ❌ATM withdrawals |
| Source of Funds | Linked Tiger Brokers Trade Account. Bank Account. |
Linked iGM Account | Bank Account |
| Are funds/cash separate from card accounts? | Yes | No | Yes |
| Who is this for? | Investors who want to accumulate Tesla shares as they spend. | Investors who want to spend their investment funds directly. | Those who struggle to save or start investing. |
Tiger BOSS Debit Card
As investors, we dream of being able to live off returns from our investments. Now you can.
If you have a Tiger Brokers account, you can apply for a BOSS debit card linked to your Tiger Trade Account. Instead of having to wait a couple of days to withdraw funds to your bank account before you can spend it, you can now spend directly from your brokerage account.
As a bonus, you’ll earn fractional Tesla shares (1% per transaction) on any eligible transactions…at least until 30 June 2024.
With the Tiger BOSS debit card, you can:
- Make payments with merchants that accept VISA cards
- Make contactless payments via Apple Pay or Google Pay
Are There Fees?
Good news, the card is free (unless you lose it, then you have to pay $15 for your tardiness). There are no annual fee, transaction fees nor wire fees for top-ups.
However, there will be a currency conversion fee if your balance is not sufficient to cover your transaction. In this case, Tiger BOSS will do the conversion for you using your balance by selecting the best exchange rate and lowest conversion fee. Read more here.
You can use the Tiger BOSS debit card to withdraw money from ATMs overseas too! But like your boss, this BOSS doesn’t like it when you go on vacation. You’ll be charged a SGD5 admin fee and 2% service fee per withdrawal. Use YouTrip, Trust or Revolut instead if you want to withdraw from ATMs overseas.
Which transactions should I make with the BOSS debit card?
From now untill end of June 2024, Tiger is giving out 1% cashback in the form of TSLA fractional shares when you spend with your Tiger BOSS debit card. However, not all transactions qualify for the Tesla shares, so take note!
According to Tiger Brokers’ T&Cs, the following transactions are NOT eligible for TSLA shares. Check through this list if you’re here for the TSLA shares! (full list here)
How to get your Tiger BOSS Debit Card?
It’s simple:
- Sign up for a Tiger Brokers account (get up to USD3,600 in rewards, T&Cs apply)
- Register for your Tiger BOSS card through the app for free, and you can start using the digital card instantly.
- Or, you can wait till you get the physical Debit Card within 10 working days.
- You’ll need to manually shift your funds from your trade account to your debit card account.
Why consider the Tiger BOSS Debit Card?
Instead of having to open a Multi-currency account with a bank and worry about keeping up with minimum balances, you probably already own foreign currencies in your trading account. Tiger’s BOSS debit card allows you to spend those funds with ease.
Plus, you get cashback in terms of Tesla shares.
But let’s address the elephant in the room.
Tesla, really?!
Well, if you’re bullish about Tesla and worship at the feet of Musk, consider this. Tesla is currently trading at -54% from its all time high and is poised to be the biggest loser of 2024 in the Magnificent 7. Which means, it might pay off in the future (if Tesla recovers). ????
Although Tiger Brokers may offer fractional shares from other companies in future, let’s face it.
1% cashback isn’t really something to shout about, even if it’s in the form of shares. Many debit cards already offer 1% cashbacks, some offer more if you spend at specific merchants. Not to mention, the usual commission fee, platform fee and other charges still apply if you intend to sell your TSLA shares.
So…
Who is the Tiger BOSS Debit Card for?
Tiger Broker users who want the option to spend funds in their Tiger Brokers account without the hassle of transferring funds back to their bank account. And, don’t mind getting some free shares while they spend.
Or, if you enjoy the convenience of being able to access funds from your Tiger Broker account directly.
Moving on…
iFast Global Markets (iGM) Debit Card
Another broker that offers a debit card is iFast Global Markets (as well as FSMOne, more about them below). The iGM Debit Card lets you spend your investment proceeds, effortlessly. And, also offers a 1% cashback (or 1.5% for those who qualify for Apex):
Are There Fees?
While there are no annual fees or transaction fees, you should always make sure that you have sufficient funds in your account before you spend with your iGM debit card. A fee will be charged for declined transactions due to insufficient funds.
You should also note that the following transactions are not eligible for the 1% cashback:
How to get your iGM Debit Card?
Likewise, you’ll need an account with iFast before you can get the iGM Debit Card. Here’s how:
- Get an account with iFast Global Markets
- Download the iGM App
- Apply for your iGM Debit Card within the app
Take note that the iGM Debit Card only supports Android devices for contactless payment currently. There may be updates in future.
The iGM Debit Card cannot be used to withdraw money from ATMs either.
Why consider the iGM Debit Card?
The ability to spend directly from your iGM account makes it easier for folks who are already withdrawing funds from their iGM account regularly.
It also makes it easier for folks who want to access any spare cash in their account. Of course, if you’re thinking of growing your funds, you can consider using iFast’s Auto Sweep feature. More about that here.
Who is the iGM Debit Card for?
iGM account holders in Singapore who wish to spend their investment proceeds. The iGM Debit Card is also offering a 1% cashback currently, though it isn’t much to rave about.
If you’re a FSMOne user and want a debit card…
Good news, FSMOne.com is the Business-to-Consumer (B2C) division of iFAST Financial Pte Ltd (“iFAST Singapore”).
Hence, they have a similar offering where you get to enjoy 1% cashback (till 30 Jun 2024) and earn points as you spend:
Likewise, you can sign up for the FSMOne debit card via your account and start spending. You can find out more here.
HugoSave Debit Card
Unlike the two debit cards mentioned above, HugoSave’s debit card doesn’t let you tap into funds from your brokerage account. Instead, you’ll need to transfer funds from your bank account into your HugoSave account in order to use it.
However, if you’re a spendthrift and often find it difficult to stick to a saving regime, the HugoSave Debit Card could help.
Their aptly-named “Roundups” feature literally rounds up every transaction you make with the card. The extra cash from the transaction will be used to invest in an asset of your choice.
As of June 2024, you can choose now from a range of precious metals and ETFs portfolios that gives you exposure to Equity, Fixed Income, Money Market, Commodities and REITS.
It’s interesting to note that HugoSave only offered gold investing when they first started. They even have a LBMA-accredited vault in the UK, where they hold their physical gold.
Are There Fees?
There are no annual fees, mark-ups nor transaction fees. Although you’ll need to cover any currency conversion (forex) fees if you’re using the card overseas. This is limited to Visa card transactions, the HugoSave Debit Card does not allow you to withdraw money from ATMs.
There are also no processing fees charged when you use the Roundups feature to save and invest. However, there will be a 0.5% fee when you sell your positions, there will also be a 0.5% annual management fee.
Currently, you get to select from 3 different ETF portfolios; “Cautious”, “Balanced” and “Growth”. Here’s the breakdown of the underlying portfolios:
On top of the Debit Card, you can also invest your additional cash in HugoSave’s Precious Metal Vaults or ETF portfolios directly. These transactions do incur a 0.5% fee or a minimum of $0.02. Precious Metals will also incur a 0.5% annual storage fee, while the ETF portfolios will incur a 0.5% management fee. This should not be confused with the Roundup feature.
How to get your HugoSave Debit Card?
Anyone can sign up for a HugoSave Lite account by providing a phone number and email address.
However, to qualify for the HugoSave Debit Card, you’ll first need to unlock the full HugoSave account. Which means you’ll need to complete a KYC process, or what HugoSave refers to as the “Trust” process, where you will have to submit a photo and your ID documents.
Once you’ve unlocked the full HugoSave account, you can apply for the HugoSave Debit Card via the app.
Why consider the HugoSave Debit Card?
HugoSave’s app is designed to help you save. You can set up ‘Money Pots’ which are basically saving goals, and occasionally they even have Quests that reward you for using the app.
While we are more familiar with collecting miles or cashback on our spending, which often encourages more spending, HugoSave tries to flip the equation by helping you save and invest.
This may or may not be for you, depending on your goals.
Who is HugoSave for?
I would think the HugoSave Debit Card would be more attractive for students (above 18 years old) and young adults who are not able to get their own credit cards yet.
Since there’s no annual fee, mark up fees nor minimum income required, this debit card may also be suitable for freelancers whose income may not allow them to access higher yield savings accounts.
It is also a great option if you’ve always wanted to start investing but don’t have the courage to plonk a few thousands into the stock markets. HugoSave is an easy way to get started thanks to the low barrier of entry – investing your small change automatically for you every time you spend.
The Best Investment-Linked Debit Card?
I’ve compared three popular investment-linked debit cards in Singapore, refer to the comparison table above for an overview!
In a nutshell, if you have a Tiger Brokers or iGM account, applying for the relevant debit cards could allow you direct access to your investment funds. Although these debit cards provide convenient access with no transaction fees, the perks are not enticing enough to warrant frequent use. Especially if you were to compare them to debit cards offered by banks. That said, the scene may evolve in the future if brokers start competing on this front.
HugoSave on the other hand has a stronger use case in my opinion as it forces you to save and invest while you spend. By limiting investment options to ETFs and precious metals, I think it offers a great way for aspiring investors to get started without having to worry about what to invest in.
That said, readers of Dr Wealth are probably not in this group. You may prefer to have more control over your investments.
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