Cashback credit cards are always special. They are easy to get value out of unlike airmiles and they are the most popular among customers. Make a transaction, get the cashback, and redeem it. It is as simple as that. SBI Cashback became the most popular cashback credit card on launch with its amazing 5% cashback on online spending. And hardly 7 months down the line, it has already seen its first devaluation. With the devaluations coming in, here is an updated review of the SBI Cashback credit card. This will help you decide whether to apply for the Cashback card or close it if it’s up for renewal.
|Annual Fee||Rs 999+GST|
|Rewards||1% to 5%|
|Best For||Online Spends|
Fees and Charges
|Joining Fee||Rs 999+GST|
|Annual Fee||Rs 999+GST|
|Annual Fee Waiver||Rs 2 Lakhs spend in a membership year|
The FYF offer with zero joining fee is now gone but you can apply via the referral link below to get a Rs 500 Amazon gift voucher. This makes the effective joining fee around Rs 680.
The Rs 2 Lakhs spend is a little bit on the higher side but can be achieved. The annual fee of Rs 999 is still reasonable considering the cashback it offers. Let’s move to the interesting part of this card – the cashback. 🙂
SBI Cashback has now restricted cashback in a lot of categories. So, it is not a 5% cashback on all online merchant spending anymore.
|Education, Fuel, Jewelry, Insurance, Rent, Utilities, Wallets||NIL|
|Other Online Spends||5%|
|Other Offline Spends||1%|
Excluding categories like education, jewelry and even utilities from even 1% cashback is surprising. The 5% cashback now has a cap of Rs 5000 per statement cycle, down by 50% from the earlier cap of Rs 10000. But, it is still ok as it needs Rs 1 Lakh spent per month to hit the cap.
How is the 5% cashback calculated for SBI Cashback Card?
SBI Cashback credit card does not give an exact cashback of 5% on spends. The calculation is a little different. The cashback is calculated at 1% for regular spending and a 4% bonus for offline spending. Each of these is then rounded down to the nearest integer. For example, if you spend Rs 2345 and are eligible for 5% cashback, then:
- 1% of Rs 2345 is Rs 23.45 which is rounded down to Rs 23
- 4% of Rs 2345 is Rs 93.80 which is rounded down to Rs 93
- Total cashback will be Rs 116 or 4.94%
The earned cashback is automatically credited to the statement every month within 2 working days of statement generation. SBI Card also sends a cashback credit message once this is done.
There are no redemption charges. SBI Card does not give a transaction-wise cashback calculation in the statement. So, we need to manually calculate the eligible cashback.
Pros and Cons
Cashback SBI Card vs other cashback credit cards
If you hold multiple cashback credit cards, use this forum thread to compare cashback rates across all of them. This will help you find the best cashback credit card for your spending.
Complimentary Airport Lounge Access
SBI Cashback does not get any complimentary airport lounge access now. This has been discontinued with the devaluation from the 5th of May 2023.
While the devaluation has a huge impact on the usefulness of the SBI Cashback credit card, it is still a good option if you spend on online merchants outside Flipkart and Amazon. But, we don’t see a use for it otherwise. We can anyway get unlimited 5% cash back on Flipkart and Amazon with their co-branded credit cards.
The second issue now is benefits. Cashback and rewards are not the only things we look for in a credit card. We also need to have benefits like airport lounge access. The SBI Cashback credit card does not get any airport lounge access now – not even once a year! This sounds rather sad for a Rs 999 annual fee credit card.
SBI Cashback Credit Card