SBI Cashback Credit Card :- Are you searching for a credit card that can provide you with rewards and savings on your purchases? Perhaps you might want to look at the SBI Cashback Credit Card. This post will examine this new SBI service in more detail and assist you in deciding whether it merits your attention.
Fees and Eligibility
The SBI Cashback Credit Card has no joining fee, and the annual fee is Rs. 999+GST (~Rs. 1,180 per year) from the second year onwards. However, if you spend more than Rs. 200,000 in a year, the annual fee is waived off.
Rewards and Benefits
The card offers a simple and straightforward rewards structure. You get 5% cashback on all online spends, up to a maximum of Rs. 10,000 per month. Offline spends, including utility bill payments, earn 1% cashback. There is no redemption fee, and the cashback is automatically credited in the next month’s statement.
The SBI Cashback Credit Card also offers four complimentary domestic lounge access per quarter. However, this benefit might not be of interest to everyone.
Thoughts on SBI Cashback Credit Card
The SBI Cashback credit card has stirred up quite a commotion on social media, with its novel reward scheme and the promise of a generous 5% cashback on online transactions, with an extensive limit of 200,000 spends each month. This implies that all online purchases up to 200,000 per month are qualified for a 5% cashback, which is a remarkable maximum cashback of 10,000 every month. As a bonus, the cashback appears in the next credit card statement.
Unfortunately, certain transactions such as utility bill payments, rent payments, wallet loads, and merchant EMIs are not included in the 5% cashback scheme, but this also suggests that this feature will persist for an extended period and not be withdrawn promptly. To add to its appeal, the SBI Cashback credit card offers a 10% birthday cashback offer, comparable to the Zomato Edition credit card.
Regrettably, utility bill payments will only earn a meager 1% cashback, which is somewhat underwhelming. SBI could have enhanced the card’s value proposition by increasing the cashback to 2% with a limit of 1000 per month. At present, it is unclear if insurance payments are considered utility payments or online transactions, but it is assumed that insurance payments will qualify for a 1% cashback.
So, what qualifies as online spending? Online transactions made on Amazon, Flipkart, Zomato, Swiggy, Ola, Uber, train, and flight bookings will be recognized as online transactions.SBI claims that there are no restrictions on merchants, suggesting that a 5% cashback can be obtained as long as the merchant MCC is not categorised as a utility, rent, or wallet burden.
Is the SBI Cashback Credit Card the only card you need?
The answer is no. While the 5% cashback on online spends is attractive, when you include other spends like utility, fuel, and offline spends, the reward rate drops to ~2.5%, which is still good but not mouth-watering.
What should be the strategy with the SBI Cashback Credit Card?
The SBI Cashback Credit Card can replace many co-branded cards in your wallet, such as the ICICI Amazon credit card, Axis Flipkart, RBL Zomato Edition, and SBI Simplyclick. However, to maximize your rewards, you can use three cards, the SBI Cashback, Axis Ace, and Amex MRCC, and earn ~5% cashback on nearly all spends every month.
Use the SBI Cashback card for all online spends – straight 5% cashback. Axis Ace credit card for all utility bill payments through the GPay app – 5% cashback. Use Amex MRCC at HP petrol pumps and for insurance payments. As long as your Amex MRCC spends Rs. 20,000+ a month on 4+ transactions, you will earn 2000 points worth anywhere between Rs. 750-1200.
Can I replace my existing SBI card?
Is it possible to replace my current SBI card? The answer seems to be yes, at least in theory. The website’s FAQ section (specifically Q10) suggests that this is a possibility. However, some customers who have contacted customer care have been told otherwise. Perhaps we need to be patient and wait for the system to become more streamlined and for the executives to receive training on the new card. Once that happens, replacing the card should be possible.
The SBI Cashback credit card is a powerful yet straightforward option for anyone seeking a cashback card for online purchases. Combining it with Axis Ace and Amex MRCC can yield a 5% cashback on all transactions, making it an ideal choice. So, the answer to your question is unequivocal. 🙂