Alliance Bank has rolled out new rules on annual fee waivers that give cardholders more flexibility. The bank has shifted from a spending-based model to a relationship-based one.

In simple terms, your eligibility for a waiver no longer depends only on how much you spend. Alliance Bank now looks at how you use their other services, from savings accounts and investments to loans, when deciding if your annual fee can be waived.

Alliance Bank’s New Rules

Starting 1 August 2025, the bank replaced its spending targets with a relationship-based approach. The goal is to reward long-term customers who actively use Alliance Bank’s products, not just high spenders chasing cashback.

If you already keep your savings, loans, or investments with Alliance Bank, this update can make it easier to keep your cards free automatically.

The Two-Card Strategy That Works

For many Malaysians earning around RM5,000 a month and spending between RM2,000 and RM3,000 on essentials such as groceries, dining, petrol, and utilities, relying on a single card often means missing out on potential rewards.

Instead of hunting for one perfect card, focus on building a system that captures the most value from your existing spending. You can start with the free Virtual Credit Card, then add the Visa Signature once your spending level justifies the upgrade.

Step 1: Start With The Alliance Bank Virtual Credit Card

The Virtual Credit Card is your low-risk starting point. It is free for life, so you can try it without worrying about fees.

You earn 8x Timeless Bonus Points per RM1 on e-commerce and e-wallet top-ups such as Grab, Shopee, Lazada, and Touch ’n Go reloads. You also earn 3x points per RM1 on dining and overseas spending.

Using the Virtual Card consistently helps you build a positive payment record with Alliance Bank. That history becomes useful later when you request annual fee waivers for premium cards.

Step 2: Add The Alliance Bank Visa Signature

Once you have established good spending and repayment habits with the Virtual Card, consider adding the Visa Signature for better cashback potential. The card carries an annual fee of RM148, but the tiered cashback structure can easily offset it if you spend consistently.

For online shopping, groceries, dining, petrol, and utilities, the first RM1,000 monthly earns 0.05% cashback. The next RM1,000 earns 0.5%, the following RM1,000 earns 5%, and any spending above RM3,000 earns 0.25%.

If you spend around RM2,500 monthly, your cashback works out like this: RM1,000 at 0.05% equals RM0.50, the next RM1,000 at 0.5% equals RM5.00, and the final RM500 at 5% equals RM25.00. That adds up to RM30.50 a month, or RM366 a year. After deducting the RM148 annual fee, your net gain is RM218.

The breakeven point for this card is about RM2,150 per month in eligible spending. Below that, the Virtual Credit Card still gives you better overall value since it has no annual fee.

Your Strategic Action Plan

During the first three months, focus on building your foundation. Use the Virtual Credit Card for e-commerce, e-wallet top-ups, dining, and overseas spending. Always pay your statement in full and on time, and track your spending habits carefully. If you consistently spend RM2,000 or more each month on groceries, dining, petrol, and utilities combined, you may be a good candidate for the two-card strategy.

Between months four and six, evaluate your patterns. Check whether your spending is consistent and whether you have maintained good repayment habits. If your average monthly spending is around RM2,150 or more, it may be time to apply for the Visa Signature.

From month seven onwards, optimise your setup. Use the Virtual Card for e-wallet top-ups and online shopping, and the Visa Signature for groceries, dining, petrol, and utilities. Paying both cards in full each month through Alliance Bank’s online platform keeps your payment record strong and consistent.

After twelve months, contact Alliance Bank’s customer service to request an annual fee waiver for your Visa Signature. A year of consistent usage and timely payments strengthens your case for approval.

The Advanced Path: Automatic Fee Waivers

If you hold a home loan with Alliance Bank, all your credit card annual fees are automatically waived with no spending requirement. For customers with multiple Alliance Bank cards, this could save more than RM300 in annual fees. Over a 30-year loan period, that equals RM9,000 or more in savings.

Alliance Bank also offers fee waivers based on your Assets Under Management, or AUM. Customers with Alliance Personal status, who maintain RM100,000 or more in combined savings and investments, qualify for fee waivers on Visa Signature and Visa Platinum cards. Those with Alliance Privilege status, with RM300,000 or more, receive waivers for Visa Infinite and all lower-tier cards. AUM includes fixed deposits, unit trusts, insurance policies, and investment products held with the bank.

However, parking RM100,000 simply to save RM148 annually only makes sense if you already plan to maintain that balance. The opportunity cost of lower returns elsewhere could outweigh the benefit. This approach works best for those consolidating existing savings, not moving funds solely for the waiver.

Why Simplicity Matters

Beyond cashback and fee savings, consolidating multiple cards with one bank helps simplify your finances. Managing all your cards on a single platform means fewer due dates to remember, easier payment automation, and a lower risk of missed payments.

A missed payment can cost you far more than the annual fee itself. You may be charged a late payment fee of RM25 to RM100, face interest of around 18% a year on the unpaid balance, and receive a negative credit record that affects your future borrowing rates.

Keeping your cards under one system reduces these risks and supports stronger financial discipline over time.

When To Skip This Strategy

Our approach may not suit everyone. It is better to hold off if you frequently carry unpaid balances, spend less than RM2,000 monthly in eligible categories, plan to apply for a major loan in the near future, or lack at least three months of emergency savings.

In these cases, focus first on building stability and paying off existing debt before trying to maximise card rewards or waivers.

Building Stronger Financial Habits With Alliance Bank

Alliance Bank’s new annual fee waiver policy rewards deeper banking relationships rather than high spending. Whether you start with the Virtual Credit Card or move up to the Visa Signature, the key to unlocking waivers lies in consistent spending, full repayments, and responsible money management.

Saving on fees is just one part of the equation. The greater value comes from developing financial discipline, avoiding unnecessary charges, and building a relationship with your bank that works in your favour for the long term.

For more credit card guides, financial tips, and advice on managing your money, visit The Experts Corner. Follow us on our official WhatsApp channel for the latest money tips and updates.

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• Alliance Bank
• Alliance Bank Virtual Credit Card
• Alliance Bank Visa Signature