Bank Rakyat is offering a 50% discount off credit card cash advance profit rates as part of its Bank Rakyat Cares campaign. Eligible Bank Rakyat credit cardholders can make a cash withdrawal at a profit rate of 9% p.a. instead of the usual 18% p.a. until 30 September 2020.
This special cash advance rate is available to all primary and supplementary Bank Rakyat credit cardholders, excluding the Bank Rakyat Corporate Credit Card. There is no minimum withdrawal amount to be eligible for the discounted rate and this promotion is applicable to transactions made both in and out of the country.
However, do note that the cash withdrawal service for credit cards is subject to a service fee in addition to the profit charge. Cash withdrawals made via a Bank Rakyat ATM or counter will be charged a fee of 3% on the total withdrawal amount, or RM20, whichever is higher. For withdrawals made through other bank ATMS or counters, the fee is 5% or RM20, whichever is higher.
Traditionally, taking a cash advance from your credit card is one of the most expensive ways to raise cash. In this case, while the 50% discount is a big chunk of interest, the one-time fee is still substantial. That said, in this Covid-19 climate, this cash advance discount by Bank Rakyat will come in handy for those who are strapped for cash, especially to those who are looking for alternative financial measures. Just be sure to consistently repay this amount, or you’ll be hit with a triple whammy of the one-time fee, 9% p.a. profit rate, and the usual credit card charges such as late payment fees.
For more information, you can find out more about this campaign on the Bank Rakyat website.