It has been quite some time since we saw the launch of a new and powerful cashback credit card. The last one was Axis Ace which has become limited in availability and has also seen some devaluation. But, we have a new challenger now from none other than the mighty SBI Card. In this post, we review the newly launched SBI Cashback credit card. A simple name but packs quite a punch.
SBI CASHBACK Card is the industry’s first cashback-focused credit card that enables cardholders to earn 5% cashback on all online spends without any merchant restrictions.
SBI has recently launched a new credit card – At first glance, it appears to be the only card you ever need. However, the reality is slightly different. Nonetheless, the credit card is indeed a very solid card but not the only card you ever need. Read on to find out why.
Fees and Charges
|Joining Fee||NIL (First Year Free)|
|Annual Fee||Rs 999 plus taxes|
|Annual Fee Waiver||Rs 2 Lakhs spend in a membership year|
The Rs 2 Lakhs spend is a little bit on the higher side but can be achieved. The annual fee of Rs 999 is reasonable considering the amazing cashback it offers.
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Rewards and Benefits
|Online merchant spends||5%|
|Offline spending and utility bill payments||1%|
|Fuel, Wallet Loads, and Rent Payments||0% – No Cashback|
- Reward Points:
- 5% cashback on all online spending (Rent payment, wallet load, merchant EMI excluded). Max 10,000 cashback per month i.e. online spending of up to 200,000 per month eligible for 5% cashback
- 1% cashback on utility bill payments and all offline spending (fuel spending excluded)
- Cashback auto credited in next month’s statement. No redemption fee.
- Lounge access: 4 complimentary domestic lounge access (1/quarter).
This is as simple as it gets. A simple cashback rewards structure without too many terms and conditions.
The 5% cashback on online merchant spending is a big surprise and will take the market by storm. The 5% cashback has a cap of Rs 10000 per statement cycle. I don’t imagine many will hit this upper cap as it needs Rs 2 Lakhs to spend per month.
It is good to see rent payments, wallet loads, and utility bills being excluded from cashback. These are often misused, so it makes sense to keep these out of the generous 5% cashback.
Pros and Cons of SBI Cashback Card
- 5% cashback on all online merchant spends.
- A monthly 5% cashback cap at Rs 10000 is quite generous.
- Complimentary domestic airport lounge access.
- Great for high spending on online merchants as other cashback cards have lower rewards cap
- 1% on utility bills is too low.
- Rs 2 Lakhs for spend waiver may be difficult as major purchases like utility etc. earn only 1%
This new launch from SBI Card was pretty surprising. For cashback lovers, this is one of the best credit cards to have today. Combine this with Ace for utility bill payments and you have no-nonsense 5% cashback on most of your spending. No need to worry about all those points and miles if you don’t like those.
SBI Cards has created quite a buzz on social media with the launch of the SBI Cashback credit card. The highlight of this card is the no-nonsense reward structure and the 5% cashback on online spending with a liberal cap of 200,000 spends per month. What it means is that all online spends of up to 200,000 per month are eligible for 5% cashback. That’s a whopping max cashback of 10,000 every month. That is not all, the cashback reflects in your next card statement.
Is the SBI Cashback credit card the only card you ever need?
The answer is No! While the 5% cashback on all online spending seems very exciting. When we run the numbers and include another spending such as utility, fuel, and offline spending; the reward rate comes at ~2.5%, which is very good but not mouth-watering. One reason is my assumption that insurance spending will give only 1% cashback.
Nonetheless, with the right strategy, you can easily earn 5% on nearly all spending every month.