Lower Interest Rate with Tiered Pricing Structure effective from 31 March 2009

In line with Association of Banks in Malaysia (ABM) initiative to encourage prudent financial management, retail purchases will now be subjected to a Tiered Interest Rate Structure. We are pleased to introduce revisions to our Credit Card Interest Rates and Finance Charges

What does this mean? The Tiered Interest Rate Structure is designed to reward customers who are timely with their bill payment. You will enjoy a lower interest rate on your retail transactions if you make prompt payments.

How does Tiered Rate work?

Based on your latest 12 months repayment behaviour the finance charge applicable on your retail transactions will be determined as per the table below:

*Prompt payment = Full / minimum payment by payment due date.
Note: Rates are subject to change from time to time.

Minimum or full payment made on or before payment due date.
Minimum or full payment made after payment due date.

Revised Late Payment Charges effective from 1 July 2009

In light of this change, the following revisions on late payment charges will also be applicable at the same time:

Your important questions answered

What if I do not have 12 months history? What would my rate be?

The rate would be 17.5% p.a. to start with and will change accordingly as your payment history builds up, to either 16% p.a. or 13.5% p.a. based on your last 12 consecutive months payment history.

What will the applicable rate be if I apply for a new card or have multiple accounts (i.e. more than one card)?

We believe in rewarding good payment behaviour and in line with this, we would extend your applicable rate to any new or supplementary card that you may apply for in future.

Please note that the applicable rate is based on a customer account basis. A similar rate depending on the payment history of the worst card (no. of times delinquent) would apply to all cards (or accounts), including supplementary cards.

If I make partial payment, is that considered prompt payment in order to be entitled to the tiered interest rate?

Your payment will be considered prompt as long as you make the minimum payment required, which is 5% of total outstanding balance or RM50 whichever is higher by the payment due date.

What are the revisions to the Credit Card charges?

Effective 31 March 2009, there will be a downward revision of the interest rates on retail transactions and late payment fees:-

Tier	Existing rates (per annum)	Revised rates (per annum)	% change
I	15%	13.5%	1.5%
II	17%	16.0%	1.0%
III	18%	17.5%	0.5%

Late payment fee

Existing	Revised
Minimum of RM10 or 1% of the total outstanding balance as at statement date , whichever is higher , capped to a maximum of RM100.	Minimum amount of RM5 or 1% total outstanding balance as at statement date , whichever is higher , capped to a maximum of RM75 per account.

When will these new measures take effect and for how long?

These measures will take effect from 31 March 2009 and will be subject to further review from time to time after a period of 12 months.

What do Tier I, Tier II and Tier III mean?

Under the new pricing structure, cardholders are categorised into different Tiers as follows:-

Tier-I : Cardholders who promptly settle their minimum payment due for 12 consecutive months;

Tier-II : Cardholders who promptly settle their minimum payment amount due for 10 months or more in a 12-month cycle; and

Tier-III : Cardholders who do not fall within the above categories.

The bank will monitor your Credit Card payment record for 12 consecutive months to determine your repayment track record. Based on your track record, the tiers will be offered in the above manner to encourage you to continuously make at least the minimum payment within the due date to stay at Tier 1 at all times.

What are the benefits of lower interest rates?

The interest rate differentials are quite substantial, up to 4% when moving up the Tiers (17.5% for Tier-III compared with 13.5% for Tier-I). This means more savings for you as a Credit Cardholder, helping you to make at least the minimum payment on or before the payment due date.

Why are the reductions in the interest rates so minimal?

The previous and new rates were/are already among the lowest in Asia as compared to the other countries (Thailand 20%, Singapore 18% - 27%, Indonesia 33% - 42% and Hong Kong 24% - 28%, Philippines 33% - 42%).

Why wasn’t the same percentage of reductions applied for all the Tiers?

The revised interest rates serve to reward prompt repayment habits and instil better management of personal finances. If you are a Tier-I Cardholder, you will enjoy the largest reduction.

If you fall under Tier-II and Tier-III, you will be encouraged to pay the minimum payment on or before the payment due date consistently, so that you can qualify and enjoy the better interest rates of Tier-I.

10.

Why is the 20-day interest free period (applicable only if there is no carried forward-balance in my account) not removed?

The 20-day interest free period (which is applicable for retail transactions only) is consistent with the practice of other countries. This is aimed at encouraging better personal finance management by a Credit Cardholder towards full repayment of his/her Credit Card due amount.

11.

Why are the reductions in interest rates subject to review?

Given the shifting economic situation, the banks will be monitoring developments in the months ahead, to ensure that they are responsive to Cardholders’ needs.

12.

When will the reduction in interest rates be reflected in my Credit Card statement?

Depending on your billing date, the new rates will be reflected in your following month’s statement.

Also, any outstanding balance from the previous months will see the lower interest rates with effect from 31 March 2009.

Take advantage of this interest savings by just paying your credit card bills on time, all the time. This interest rate reduction is to reward prompt payment and we would also like to thank you for your continued support in choosing Standard Chartered Credit Card as your Card of Choice.