10 Financial Tips for New Grads

Photography: Graduation Cake Guy by CarbonNYC

After countless hours studying, late nights, final exams, and some parties, now it’s time to head out into the “real world”… or at least that’s what everyone has been calling it as long as you can remember.

When moving on to the adult phase of your life, be sure to take care of your financial situation. Your actions now will have a significant impact on how the rest of your life shapes up financially.

Many older adults look back and say the number one thing they wish they would have done differently was learned about money management while they were young. Here’s your chance to jump-start your finances!

Get health care coverage immediately. If it hasn’t already, your parent’s health care coverage will probably end with your graduation. Get a quote for an individual health insurance plan or sign up with your new employer’s plan. Going without coverage could have a devastating effect on your finances if you have a severe illness or accident. Make this the first thing you do… and don’t put it off!

Get your own home and auto insurance. Now that you aren’t a student, you’ll need to get your own auto and renters insurance policies. Start by calling your current insurer, you might be eligible for a discount based on the length of time you’ve been with the company, but don’t forget to shop around to save on insurance premiums.

Save money for your future self. Join the retirement plan at work. If you are young and your company offers it, you may want to explore the Roth 401k at work. In addition to your plan at work, begin saving money on your own for both retirement and other goals

. Now maybe the perfect opportunity to save a lot and use the reverse savings strategy before you have lots of financial obligations (kids, house, etc.)

Start an emergency fund. Earmark some of your first dollars from your new job to build up a savings account to serve as an emergency fund

. You never know when an emergency will hit, but it is inevitable.

Learn about taxes. What? I know, this isn’t a fun one. However, hopefully, you’re going to go from a poor college student to a highly paid worker. With that luxury comes higher taxes. Educate yourself about taxes, and you’ll be able to take advantage of incentives and deductions to cut your tax bill. Pay particular attention to the student loan interest deduction and the saver's credit for retirement savings contributions.

Begin payments on student loans. Begin paying your student loans right away. Your future self will thank you.

Handle credit cards wisely. Use credit cards carefully to earn cash rewards. Always pay your balance in full every month. If you run up some credit card debt while in school, begin paying it off aggressively. To save interest while paying it off you may want to transfer the balance to a 0% balance transfer credit card or explore other ideas in how to pay off credit card debt.

Create savings goals. Before you commit your paycheck away, create savings goals. As a new grad, you may want to focus on retirement or a downpayment for a house.

Spend money slowly. It can be very tempting with a new job to buy a new car and rent a fancy apartment. Not so fast! Wait a few months to see how your finances work out. My husband found this out the hard way.

Follow your heart. Did you meet the man or woman of your dreams at school? If so, and you are planning a wedding in the future, don’t forget to check out frugal tips for the ring and the wedding.

Source: http://www.mydollarplan.com/10-financial-tips-for-new-grads/#ixzz31CBa8Nkx

A Simple Secret for Avoiding Shock at the Cash Register

My least favorite part of shopping is going to the cash register. I hate the sinking feeling in my gut that I get when my items are totaled and tax is applied.

Did I really spend that much? Yes, the numbers don’t lie.

As I’m shopping, I have a rough idea of what I’m spending, but somehow it always becomes much more when it’s accurately totalled. This is partially the fault of my falling for retail pricing tactics.

For instance, an item’s sale price is $19.98. When you estimate your total while shopping, it’s easy to drop off the change and think of it as $19, which is exactly what retailers want you to do! In actuality, $19.98 is much closer to $20 than $19.

By advertising a price as a penny or two less than the next dollar amount, retailers trick many shoppers into thinking they’re spending less

.

This is a tactic I became familiar with at a young age, thanks to my penny-pinching parent. She would ask me how much an item was, and at first, I would answer something like “$19.98.” She would correct me, saying that the item was actually more like $20.

As an obsessive-compulsive person, I didn’t really like rounding up when I was actually spending less, but I soon discovered why she did this. When she got to the register, there were no surprises. She usually had her money ready to go before her items were totaled, and she hardly ever had to dig in her purse for more.

My grandmother had perfected the art of rounding.

Round ‘Em Up

Since hardly anything is priced in even dollar amounts (other than at the dollar store), it’s necessary to round dollar amounts to get a more accurate idea of what you’re spending before you get to the register.

Rounding isn’t just a technique you learned in school to help you determine answers given in decimal points; it’s a valuable skill for shopping smart. By rounding amounts to the nearest whole dollar, you can quickly determine if you’re staying within your budget.

For instance, if you purchase items that are priced at $15.97, $5.88, and $2.47, you can round the first amount up to $16, the second amount to $6, and the third amount to $2.50. Your estimated cost is then $24.50. If you calculate the actual cost, it’s $24.32. That’s very close! Of course, if you have a calculator on your phone, you can always plug the actual amounts in to get this total. But if you don’t want to stop what you’re doing, rounding is an easy way to calculate an accurate total in your head.

Don’t Forget Tax

In case you were wondering, no, I didn’t forget about sales tax. This is something that should be rounded into your estimated total, as well. In my state, for instance, the sales tax is 6%. This is closest to 10%, which is an easier percentage to calculate in your head.

In the case of the previous purchase, I would determine 10% of $24.50, which is $2.45. If you wanted to round this again, it would be $2.50. So the total will be under $27. To test the math, 6% of the actual total, $24.32, is $1.46. The total with tax becomes $25.78. The estimate of $27 is very close, and as always, higher than what was actually spent.

Math Isn’t Always Evil

The practice of rounding dollar amounts to get a more accurate picture of what you’re spending can be applied in many areas of personal finance — beyond a simple trip to the grocery store or the mall. By utilizing this oft-forgotten mathematical technique, you can avoid register shock and be more aware of your spending.

Do you round up numbers in your head while shopping? Why or why not?

Source: A Simple Secret for Avoiding Shock at the Cash Register

Retiring Soon? Don’t Make These 8 Mistakes

There is plenty you can do to avoid running out of money in retirement. Whether you are newly retired or retiring soon, planning is key.

Some retirees just plunge in and get into trouble.

Eight money mistakes those nearing retirement made and how to avoid them so your lasts.

Mistake 1: Not planning for medical expenses

Medicare kicks in at age 65, but that’s not the end of your medical expenses. Fidelity Benefits Consulting estimates a 65-year-old couple retiring this year will need $220,000 of their own money for medical expenses over the course of retirement. Those include deductibles for Medicare Part A and Part B (in-patient and out-patient insurance) and premiums and out-of-pocket costs for Medicare Part D prescription drug coverage.

Take action:

• Call your state insurance commissioner’s office to get help choosing the most cost-effective Medigap plan.
• To help dodge expenses from illness and disability, exercise regularly, and stay at a healthy weight. (Get a physical exam before beginning a diet or exercise program.)

Check into long-term-care insurance. It’s cheaper if you sign up when you’re younger.

Think about moving closer to good medical centers, hospitals, and families.

Mistake 2: Underestimating costs

Retirement costs can be surprising. Surprisingly high, that is. You can manage costs by earning extra income in retirement. Here are the rules for working while receiving Social Security benefits.

AARP tells the story of Jackie Booley, who retired at 61 but later began working from home for about $9 an hour as a customer service representative. Numerous employers offer home-based jobs. But the field is rife with scammers, so learn the red flags.

Take action: Start shopping for jobs. (Research compensation at PayScale.com.) These articles have job ideas and resources:

• “Great Work-at-Home Jobs for Retirees” and “5 Part-Time Jobs for Retirees“ are among articles and resources at AARP’s job-hunting area.
• “10 Best Jobs for Americans Over 65“ from The Fiscal Times include casino work, market research, mediator, nutritionist, and Santa Claus gigs.
• “10 Part-Time Jobs for Retirees” from Bankrate lists consulting or freelancing, research for universities, government jobs, part-time seasonal work, customer service, teaching, and tutoring.
• “The Best Part-Time Jobs for You“ at The Huffington Post taps employment experts for ideas and resources. Among suggested jobs: bartender, tour guide, and flight attendant.
• For more ideas, read “7 Tips to Find a Job in Retirement.”

Mistake 3: Celebrating with a big purchase

No doubt you’ve got a wish list for retirement. But hold off major purchases and expenses at first to give retirement a spin and see what you’re spending each month. Track expenses – every single one. A year’s tracking gives the best picture because it includes one-time and seasonal expenses.

Take action: It doesn’t matter what tracking system you use. Just find one you like and keep it up. Keep receipts, watch bank and credit card accounts online on a weekly basis, and update your tracking regularly. Here are a few approaches:

• Free online budget programs. Money Talks News partner PowerWallet lets you track expenses automatically for free. It and other free money management services like Mint and BudgetTracker make money by recommending financial products and supplying coupons.
• Quicken. Users can enable online features or input expenditures manually. Cost: $30 and up.
• Microsoft Money Plus Sunset Deluxe. MSN’s popular software tool has been discontinued and replaced by (free download) Microsoft Money Plus Sunset Deluxe. It’s a no-frills product — no tech support and no linking to online accounts.
• DIY. Track expenditures manually and offline on a spreadsheet.

Mistake 4: Helping out the kids

Many parents set themselves up for a crisis in retirement by supporting adult children financially. A study by Merrill Lynch says 60 percent of people 50 and older are assisting adult relatives financially.

Most people realistically can’t do both. Adult children still have time to pay off college loans and save for retirement. Their parents are running out of time.

Take action:

• Make a concrete plan with goals and deadlines for gradually withdrawing financial help.
• Discuss the changes you are making with your kids.
• Help them learn to budget.
• Model financial restraint and responsibility for your kids.

Mistake 5: Claiming Social Security too soon

Waiting to claim Social Security benefits is one of the best investments around. Your Social Security account earns 8 percent a year when you hold off claiming benefits beyond your full retirement age.

If your full retirement age is somewhere between 66 and 67, your benefit check could grow by 32 percent if you wait until age 70 to collect, Social Security spokesman Michael Webb said in an email. If your full retirement age is 67, waiting until 70 yields a maximum possible increase of 24 percent.

The average benefit Social Security paid in January was $1,294 — $2,111 for a couple. If your full retirement age is 66, waiting until 70 would grow a $1,294 benefit to $1,708 a month for life. For couples, if both spouses wait to 70, the $2,111 average combined benefit can grow to $2,787 a month.

On the other hand, about half of retirees take Social Security at the earliest possible moment, when they’re 62, locking themselves into a much lower monthly benefit than if they had waited until full retirement age. U.S. News & World Report says:

Social Security benefits are reduced for workers who sign up at age 62, and the amount of the reduction has recently increased from 20 percent for people born in 1937 or earlier to 25 percent for baby boomers born between 1943 and 1954. … The reduction in benefits for people claiming at age 62 will further increase to 30 percent for everyone born in 1960 or later under current law.

This Social Security Administration table shows the reduction in taking early Social Security benefits depending on the year you were born.

Take action:

• Go to SocialSecurity.gov’s My Account to see your estimated benefits. If you’ve paid into the Social Security system, you can create an account and pull up a statement showing what you’ll earn by claiming benefits at various ages.
• Keep your current job if you can and delay retirement. Or get a part-time job that helps you hang on longer before claiming benefits.
• Hire a certified financial planner to review your retirement plan, income, and expenses with you. Find a fee-only certified planner.

For more tips on boosting your benefits, read “13 Ways to Get More Social Security.”

Mistake 6: Forgetting to plan for taxes

The IRS probably won’t disappear from your life when you retire.

For instance, traditional tax-deferred retirement plans like 401(k)’s and IRAs allow you to contribute pretax money to the accounts with the understanding that Uncle Sam will get his cut when you draw from the accounts after retirement. To that end, those accounts require you to withdraw a minimum amount each year beginning in the year you turn 70½. If you don’t, you could be hit with a 50 percent penalty on the amount you should have withdrawn.

There are calculators online that can help you compute required distributions, 

​Good planning, especially before retirement, can help manage the tax bite. One strategy, Stacy Johnson says, is to roll a portion of retirement savings into a Roth retirement plan, which has no minimum distribution requirements. Roth plans require taxes to be paid before money goes in. You withdraw the funds tax-free later. The strategies you use will depend on your income now and what you expect it to be after retirement.

Take action: Make a plan — or get expert help making one — that takes taxable retirement income into account.

Mistake 7: Ignoring estate planning

Get your affairs in order before you’re ill or old so you’ll have control over where your money and possessions go. It’s a kindness to your heirs, too, since they won’t be saddled with the work.

Take action:

• Make or update your will and, if appropriate, make a revocable living trust.
• Sign a durable power of attorney naming someone you trust to make your legal and financial decisions if you cannot.
• Assign health care power of attorney to someone to make your medical decisions if you’re unable.

Learn more from “Estate-Planning Documents You Need Right Now.”

Mistake 8: Investing too conservatively

As retirement grows nearer, it seems prudent to invest more conservatively. But you could live another 20 years. Savings held too conservatively shrink due to inflation. A portion of your funds needs to grow.

“Never taking a risk means taking a different risk,” Stacy says.

Take action: Learn about investing so you can be confident in taking measured risks to earn gains, even as you grow older.

Read “Ask Stacy: How Do I Get Started Investing?”

What money mistakes have you seen retirees you know to make? Post your comments below or on Money Talks News’ Facebook page.

Source: Retiring Soon? Don’t Make These 8 Mistakes

Should You Pay Your Bills With a Credit Card?

Many people put their daily purchases on credit cards to track spending, earn rewards, and add coverage like price protection to the items they buy. But what about bills such as utilities, student loans, and insurance — should they be put on a credit card?

Should I put non-debt bills on a credit card?

Pro: In this Nerd’s experience, there’s a lot of upside to putting utilities, Internet, cell phone, and automobile insurance on a credit card. If you have a rewards card, it will net you cash or travel rewards for spending on bills you have to pay anyway. It’s also nice to have your entire spending record in one place instead of having to check numerous accounts to see where your money went this month.

Con: Some companies — especially small or local businesses — may charge convenience fees for credit card payments. You should check your payment agreement to see if this is the case.

If you aren’t paying convenience fees, it may be a good idea to put these non-debt bills on a credit card.

Of course, putting any charges on a credit card can be risky if your finances aren’t in a good place. You should only charge these bills if you have a handle on responsible credit card use and you pay off the entire balance each month. You don’t want to have to pay interest on insurance payments you made six months ago.

Should I put rent payments on a credit card?

Pro: Websites like WilliamPaid allow you to build your credit history while making rent payments through the site.

Con: Using a credit card, even on sites like WilliamPaid, will cost you inconvenience fees. Generally, the only fee-free method of paying your rent is through a check or direct transfer from your checking account.

Note: In some cases, your landlord might accept cash. I wouldn’t advise paying any bill in cash, because you generally can’t prove you made the payment if a situation arises where you’d need to.

Pro: It’s great that you can pay your rent with one or more credit cards if absolutely necessary. Yes, it will cost you, but it’s nice to have the option in a financial squeeze. In the future, it’s a good idea to build up an emergency fund for lean months. Here’s how!

Unless you can’t afford to pay otherwise, or your landlord accepts credit card payments without fees, you probably shouldn't pay rent with a credit card.

Should I put a car or student loan payments on a credit card?

Con: Many auto and student loan providers don’t allow you to make payments with credit cards. One exception: the U.S. Department of Education will take credit card payments on defaulted loans. Check your payment agreement to see if this is the case. If you can make credit card payments, you will likely have to pay convenience fees.

Con: Car and student loan interest rates are almost always lower than credit card interest rates. In the event you’re unable to pay off your credit card balance, you could end up paying much more in interest than you’re earning in credit card rewards.

It’s most likely not a good idea to put a car or student loan payments on a credit card.

Bottom line: Be aware of any convenience fees you’ll incur by paying your bills with credit cards. I’d suggest only paying for products and services that won’t charge a fee with a credit card and using cash, a debit card, or a bank transfer for the rest. And, of course, only use a credit card if you know you can pay off the balance in its entirety each month.

The Only 4 Things You Need to Do to Start Investing

Do you want to get rich through investing one day? Do you think it's even possible? Well, it is. And the best part about investing is that it's simple.

It's not a get-rich-quick scheme, and it's also not rocket science.

I'm going to show you four simple and actionable steps you can take. After reading this article, you'll be able to just follow the directions and start investing right away. Really, there are just four steps.

Let's begin.

1. Choose an Investment Company

Before you can invest, you need to choose an investment company to invest with. There are tons of options out there, including Fidelity, Schwab, and T. Rowe Price. But I'm going to recommend the company that I think is best. And that company is Vanguard.

Why are they the best? Because the company is owned by its investors, which means that the company's interests are aligned with those of their clients.

One specific way they show this alignment is by sharing their profits with their investors, using the profits to lower the fund fees for them (fund fees are expenses you pay no matter where you invest). So the benefit to you as a client is that you get to invest in funds that are some of the lowest costs in the industry. (See also: Online Brokers for Newbies)

2. Open an Account

Now that you have a company to invest in, you need to open an account. Here, you have a few options.

If you meet the income requirements, you can open a Roth IRA, which is a retirement account that comes with some unique tax benefits. You can also open a traditional IRA or general savings account.

To open an account, all you need is to enter some basic personal information, and it only takes about 10 minutes. If you want to speak to someone and have them walk you through the process, the bigger brokerages such as Vanguard have efficient customer service departments.

3. Pick an Investment

After you've opened an account, the next step is to choose your investment. And just as there are many investment companies to choose from, there are many types of investments to choose from as well.

But again, I'm going to recommend what I think is the best option for most beginning investors. And that is a Target Retirement Fund.

Why? Because they follow all the rules of effective investing. The details behind these rules are beyond the scope of this article, but they include:

• choosing an asset allocation,
• diversification,
• regular rebalancing; and
• low cost.

All you need to do is choose the fund with the year closest to the time you expect to retire. For instance, if you're 32 years old and expect to retire in about 31 years, you'd choose the Target Retirement 2045 Fund.

4. Invest Regularly and Often

Lastly, after you've chosen your investment, you need to add money to it. And the sooner you start, the more you'll have later. (See also: Dollar-Cost Averaging Is One Path to Confident Investing)

For instance, let's say you start at age 35 and invest $5,000 every year for 30 years. If your investments grow 8% each year, by the time you're age 65 you'll have just under $612,000.

That's not bad. But check this out.

Let's say you start 10 years earlier — at age 25 — and invest $5,000 every year for just 20 years – 10 years less than our example above. And again, let's say your investments grow 8% each year. Even though you stopped adding money at age 45, by the time you're 65 you'll have over a million dollars.

In other words, by starting just 10 years earlier, you can invest $50,000 less, and still end up with over $540,000 more than the person who started later.

So the key to getting rich is investing as much as you can, as early as you can, and as often as you can. And to make this easy for you, you can set up your account to have money automatically invested from your checking account. That way, you make money regularly, without any effort on your part.

Check out this calculator, where you can play with different numbers to see just how much money you can end up with.

Now you know the simple steps to begin investing. Get started now, and you'll be making money in no time.

Source: The Only 4 Things You Need to Do to Start Investing

5 Things to Know About Credit Cards

Credit Cards

The right credit card can help you manage your finances.

When you're choosing a new card, it's a good time to be picky.

Shopping for a new credit card can be pretty overwhelming, especially considering you have hundreds of types of cards to choose from. Should you go for a rewards card, the lowest interest rate card you can find, or the card that comes with a free T-shirt? If you're trying to sort through all your options, consider these five tips that I recently shared on "The Tavis Smiley Show" from Public Radio International.

1. Use comparison websites. The myriad of credit card options today is matched by a slew of comparison websites that make it easier than ever to customize your search for the right card for you. Google's credit card search tool lets users narrow down their search by interest rate, rewards, and a dozen other factors. IndexCreditCards.com, Bankrate.com, CreditCards.com, CreditKarma.com, and NerdWallet.com all offer credit card search tools.

If you always pay your bill in full each month and never carry any debt, then you can take a closer look at the rewards options. Perhaps you prefer cash back to airline miles or points that let you make purchases at retailers such as Best Buy (BBY) or Home Depot (HD). If you do carry any debt, though, then you'll want to focus on minimizing the APR, or annual percentage rate. Just don't sign up for the first offer you get in the mail because it might not be the best one for your situation.

2. Check up on the extra protections that come with your card. Credit cards come with various forms of protection, including theft, non-delivery of items from a company, and even extended warranties. If you travel a lot, then you might want to focus on cards that come with travel perks like insurance; if you buy a lot of large electronics, then the extended warranty protection might be for you. If you're a big shopper, the price protection, which offers to make up the difference if an item you buy drops in price, could be your best bet. The important thing is to read the fine print, ask questions so you know what perks come with your card, and pick the card that has the benefits that are important to you.

3. Don't be tempted by freebies. Credit cards sometimes offer tempting short-term benefits, including token gifts like T-shirts or a temporary zero percent APR. For the most part, you don't want to get sidetracked by these offers because they mask the far more important factors, namely the interest rate and any relevant fees. In fact, you should probably ignore introductory gifts altogether because you'll have your card for longer than you'll enjoy the added freebies. You can buy your own T-shirt later.

4. Avoid rewards cards unless you carry zero debt. On average, rewards cards carry higher interest rates than non-rewards cards. According to IndexCreditCards.com, the average interest rate on a consumer rewards card is currently 17.64 percent, and the average rate on a non-rewards card is 15.48 percent -- that's a full two percentage point difference. It might not sound like much, but if you're carrying debt each month, then you want to make sure you're paying as little as possible for it. (Along with developing a plan to pay it off in full as soon as possible.) Any rewards are not worth the extra interest payments.

5. Rates and fees can be negotiable, so always ask. Credit card providers are sometimes more flexible than you might think. If you're a good customer with a strong credit history, then you might have some leeway to ask for a lower interest rate or for an unexpected fee to be removed. You can sometimes negotiate better terms for yourself, especially if you're a good customer who pays on time. There's no harm in calling up the customer service representative to ask what they can do for you.

The bottom line: You want to make sure your credit card is working for you, and not vice versa. Pay off your bill each month so you're not carrying any debt, and take advantage of the free rewards coming your way. If you do have debt, make a plan to pay it off, because the high-interest rates on credit cards add up quickly over time.

5 Credit Cards That Give 5% Cash Back

This is a guest post by Mike, the owner, and operator of CreditCardForum. There you will see his ratings of the best credit cards for 2012 (for U.S. residents). What follows are 5 of his favorite cashback cards for people who live in Malaysia.

For those who carry a balance, credit card rewards should not be a priority. Why? Because the interest rate you are paying is likely many times higher than the value of your cash back or points. So if you carry credit card debt, your focus should be on finding the lowest APR possible.

However, for those who pay off their entire credit card bill every month (and therefore pay no interest) then reward programs are a lucrative proposition. It’s like getting free money. But which programs pay the most? Well here are 5 credit cards available in Malaysia that give you rewards worth up to 5%.

1. Citibank Cash Back Platinum Card

I wish I lived in Malaysia so I could take advantage of this offer, because Citi doesn’t offer anything this good in the United States!

You earn 5% cashback on petrol (or as I call it, gas) spending up to RM600 per month. For groceries, you earn 2% on up to RM3,000 spending each month at selected stores (Servay, Econsave, Carrefour, Tesco, Cold Storage, Everise, Giant, and Mydin). There’s also a 2% rebate at some pharmacies (Caring, Guardian, and Watson) and CitiBank online payments for Celcom, DiGi, Maxis bills. Everything else will earn you a flat 0.3%.

However, the downside is that this card will cost you RM195 per year. So if you don’t spend much, it might not be worth it. The income requirement is RM40,000 per year.

2. HSBC Visa Signature

This is a more exclusive card since your annual income must be at least RM100,000. If you earn that much, this card is a good deal because there is an annual fee waiver as long as you make at least 12 swipes per year.

The rewards programs will give you 5 points per RM at participating grocery stores, shopping malls, and department stores (on the spending of up to RM1,000 per month). You also earn 5x points for all dining and hotel purchases made overseas (up to RM1,500 per month). For all other spendings, it is 1 point.

With this card your points can be redeemed for different things, ranging from travel to merchandise. Depending on what you choose, it might be possible to get a high enough value so your 5x points = 5% cashback.

3. Maybankard 2 Gold Card

This is an interesting offer because you actually get 2 credit cards; an American Express and a Visa or MasterCard. There is a lifetime fee waive and the income requirements are more reasonable at RM30,000.

The MasterCard is not very exciting, because it will only earn 1x TreatPoints for every Ringgit spent. However, the American Express will give you 5x TreatPoints. Best of all, during weekends the American Express card will also give you 5% cashback (up to RM50 per month).

4. Giant-Citibank Credit Card

If you shop a lot at Giant, this credit card offer is worth considering. The income requirement is low at RM 24,000 however the annual fee is relatively high at RM120.00. So make sure you study the cashback program closely to see whether or not it will be worth it for your spending.

• Tier 1: It your total monthly spending (at Giant + elsewhere) is under 800RM then you will only earn 2.5% on the purchases from Giant and 1% at participating restaurants and utilities.
• Tier 2: If your total monthly spending is 800RM and above, this is one of the best cashback credit cards around. It will give you a full 5% cashback at Giant stores and 2% on the restaurant and utility categories.

However, the biggest disadvantage with this program is that your maximum rebate at Giant stores is RM 400 for Tier 1 and 600 for Tier 2. Your total annual rebates are also capped at a maximum of 600.

5. OCBC Titanium Master Card

Just like the HSBC Visa Signature, this credit card is free as long as you make at least 12 purchases per year. The income requirement is RM36,000 but I have read reviews from customers which much higher incomes who for some reason, don’t get approved for it. So it sounds like this card is not the easiest to get.

This has one of the best cashback programs on the market because it’s based on categories, instead of specific merchants. You will get 5% cash back at grocery stores, restaurants, petrol stations, and utility bills. Everything else will be a flat 1% rebate.

With this generous program, it comes as no surprise that there is a limit to how much you can earn; a max of RM50 per month and 600 per year.

Conclusion?

I own and operate one of the most popular credit card websites in the United States, so I know the reward programs quite well! We do have some excellent 5% cashback card offers in the US, but nothing that compares to the above credit cards! So if you live in Malaysia, consider yourself lucky!