How do UOB’s automatic UNI$ deductions for annual fees work?

If you have a UOB credit card, you might be wondering why you haven’t been charged an annual fee, even after the initial fee-free period ends. Is the bank simply benevolent enough to look the other way?

Not really. If I were you, I’d check my UNI$ balance, because buried in the UOB Rewards T&Cs is a clause that allows the bank to automatically deduct UNI$ for annual fee. In fact, it’s the default option, so long as you have sufficient UNI$!

📝 UOB Rewards Terms & Conditions

14. Priority will be given for the deduction of UNI$ for full or half waiver of your UOB Credit Card annual fees. UNI$ for a full or half waiver of the UOB Credit Card annual fees will be automatically deducted on the first day of the following month when your annual fees are due upon the annual renewal of Card membership. … To enjoy the fee waiver, the Cardmember has to set aside sufficient UNI$ in reference to UOB Cardmembers Agreement under Fees and Charges Guide/ Annual Fees and Waiver with UNI$.

UOB is the only bank in Singapore with such a practice, and if you don’t keep a close eye on things, you might one day realise your UNI$ balance is much smaller than expected.

In this post, I’ll explain how UOB’s automatic UNI$ deductions work, how to spot them, and what to do when it happens.

How many UNI$ are deducted for annual fees?

The number of UNI$ required for annual fee waivers can be found in Appendix 1 of the UOB cardmembers agreement. In the table below, I’ve highlighted the cards which will be relevant to those collecting miles and points.

💳 UNI$ deductions for annual fee
Card	Annual Fee	Full Waiver*
UOB Lady’s Card Apply	S$196.20	UNI$6,500
UOB Preferred Visa Apply	S$196.20	UNI$6,500
UOB Visa Signature Apply	S$218	UNI$6,500
UOB PRVI Miles Card AMEX MC Visa	S$261.60	UNI$6,500
UOB Lady’s Solitaire Card Apply	S$414.20	UNI$10,000
*A half waiver requires 50% of the UNI$ and 50% of the annual fee cash

As the KrisFlyer UOB Credit Card earns KrisFlyer miles instead of UNI$, you will be automatically billed the annual fee in cash.

Fee waivers are not available for the following cards:

• UOB Reserve Card
• UOB Reserve Diamond Card
• UOB Visa Infinite
• UOB Visa Infinite Metal Card

Here’s the logic that governs UNI$ deductions:

• If you have sufficient UNI$ for a full waiver, the full waiver option will be automatically selected
• If you do not have sufficient UNI$ for a full waiver but have sufficient UNI$ for a half waiver, the half waiver option will be automatically selected
• If you do not have sufficient UNI$ for a full or half waiver, the annual fee will be billed in cash

Some of you might be working the sums and thinking, well, if I have a UOB PRVI Miles Card, the S$261.60 annual fee can be waived with UNI$6,500 (13,000 miles). At ~2 cents per mile, isn’t that rather decent?

But that misses the bigger picture: you shouldn’t be paying the annual fee on these cards anyway. 

The way I see it, the first-best solution should always be to request for an annual fee waiver. And if that’s not granted, I’d much rather cancel the card and reapply sometime down the road.

How to spot a UNI$ deduction

The easiest way to spot a UNI$ deduction is to have a monthly habit of checking your UNI$ history on the UOB TMRW app (Android | iOS).

1. Log in to the UOB TMRW app
2. Tap Rewards+ at the bottom of the screen
3. Tap My Rewards
4. Tap UNI$
5. Next to UNI$ history, tap View All

This will show you a detailed history of your UNI$ for the past three months, including UNI$ deductions for annual fees.

Alternatively, you can also spot this in your online transaction history or eStatement.

How to get an annual fee waiver

The UOB TMRW app allows cardholders to request for annual fee waivers, whether they’ve been billed in cash, or in UNI$.

1. Log in to the UOB TMRW app
2. Tap Accounts at the bottom of the screen
3. Select the card you wish to request a fee waiver for
4. Tap Settings, then Waive Fees
5. Select Annual Fee and confirm

Here’s the important bit: you must wait for the annual fee to be posted to your account before a waiver can be requested. Otherwise you’ll get an error message saying “your card currently has no annual fee incurred within the past 120 days”.

It usually takes 1-2 days for the annual fee to go from pending to posted, so be patient.

What if a waiver is granted?

If the request is successful, you’ll see a green screen.

It is normal that you don’t see a reversal entry in your UNI$ history. However, you will see a reversal entry in your transaction history, and your UNI$ balance will increase after 1-2 days (not immediately!)

You will also see the reversal reflected as a line item in the eStatement, and under the Rewards Summary section.

The refunded UNI$ do not follow the original UNI$ expiry. Instead, they come with a fresh 2-year validity. I suppose that’s the silver lining to all this!

What if a waiver is denied?

If the waiver request is denied on the app, it’s not quite game over. 

Call up UOB customer service and tell them you wish to cancel your card. Sometimes, the CSO can magically conjure a fee waiver out of thin air to retain you!

But even if they don’t, I’d lean towards following through with the threat to cancel, because it just doesn’t make sense to pay the annual fee for most entry-level cards. Remember: the annual fee is paid in respect of the upcoming year, not the previous year. If you decide to cancel the card, the fee should not be chargeable. 

Here’s how it works if you’re cancelling the card:

• If this is your last UNI$-earning card, you’ll get a certain number of days (the CSO will state this) to transfer out the UNI$ before the account is closed
• If this isn’t your last UNI$-earning card, you don’t need to do anything since UNI$ all pool into a central account

Refer to this article for more information. 

What happens to my points when I cancel a credit card?

Conclusion

UOB’s automatic UNI$ deductions for annual fees are a unique quirk of the bank, and can easily catch out many first-time cardholders. There’s nothing more annoying than an unexpected points deduction, especially if you only realise it when you’re about to make a transfer!

Fortunately, these can be waived, just like an annual fee charged in cash. You just need to be vigilant in monitoring your statement and spotting when it happens.