SINGAPORE - United Overseas Bank (UOB) is the last of the three local banks to raise its late payment charges on its personal credit cards here.
The hike to S$90 will start on July 14, up from S$60 previously. The bank had said in early June that it kept its late payment charge at S$60 for at least three years.
Also, the administrative fee for foreign currency transactions and all UOB personal and commercial credit cards - excluding all UOB American Express or UOB Prvi Miles Visa and Mastercard cards - will also be raised to 2.8 per cent, from 2.5 per cent, on the amount coverted.
Banks have been raising various fees and charges on credit cards over the years, thanks to pressure on profitability and greater competition.
On June 1, OCBC Bank raised the late payment charge for most credit cards from S$80 to S$100. The late payment fee for its NTUC Plus! Visa credit card was raised to S$100 from S$60 on the same day.
DBS Bank raised its fees on May 1. An outstanding balance of more than S$50 on a card now incurs a late payment charge of S$100, up from S$80.
Annual fees for its POSB Everyday Card were also raised on May 1 - from S$128.40 to S$192.60 for the principal card, and from S$64.20 to S$96.30 for each supplementary card.
Daiwa SB Investments (Singapore) analyst He Yuxuan had previously noted that the fee increases could be attributed to the desire of banks to maintain or improve operating margins on the back of higher business costs.
