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.
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.
Let’s move to the interesting part of this card – the cashback. 🙂
|Online merchant spends||5%|
|Offline spends and utility bill payments||1%|
|Fuel, Wallet Loads, and Rent Payments||0% – No Cashback|
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 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.
The earned cashback will be automatically credited to the statement every month. There is no redemption fee.
Pros and Cons
- 5% cashback on 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%
Cashback SBI Card vs Millennia/Eterna/Amazon Pay/Flipkart Axis Cards
When we see the launch of such a good cashback card, it is only natural that many existing cards have become not so useful. We will see the same here.
- HDFC Bank Millennia: Good cashback but with caps. This card does not have those.
- BoB Eterna: Lesser rewards than SBI Cashback card unless you spend on rent, and fuel. Plus lesser upper cap for rewards.
- Amazon Pay ICICI Card: 5% on Cashback SBI Card without Prime membership
- Flipkart Axis Bank Card: 5% on online spending using the SBI Cashback card, no need for this anymore
- SBI SimplyCLICK Card: Why wait for milestone benefits, when we can get cashback on this card?
Here is a calculator to help you find which is the best cashback credit card for your spending. Considering the various exclusions, it is best to have at least 2 cashback credit cards to get the best reward rate. For cards like Millennia and Eterna with a cap on accelerated rewards, the calculator is considering them for total rewards.
Complimentary Airport Lounge Access
We get one complimentary visit per quarter to domestic airport lounges. Check this list for eligible lounges.
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.
With SBI Card’s reach, we will soon see a lot of issuances for this card. Get it while you can because a credit card this good gets devalued sooner than later. Or, SBI might also restrict issuance like what happened with Axis Ace.
SBI Cashback Credit Card