Cashback credit cards hold a special place in the hearts of savvy shoppers. Unlike air miles or other rewards, cashback is straightforward – make a transaction, earn cashback, and redeem it. One such cashback card that gained immense popularity upon its launch is the SBI Cashback Credit Card, thanks to its enticing 5% cashback on online spending. However, just seven months down the line, it has witnessed its first devaluation. In light of these changes, this article presents an updated review of the SBI Cashback Credit Card, helping you make an informed decision about applying for this card or considering alternatives upon renewal.
SBI Cashback Credit Card: An Overview
Type: Cashback Variant: Visa 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 (First-Year-Free) offer with zero joining fee is no longer available, but you can still apply through the referral link below to receive a Rs 500 Amazon gift voucher, effectively reducing the joining fee to approximately Rs 680. While the Rs 2 Lakhs spend requirement may seem a bit high, it’s attainable. Considering the cashback benefits it offers, the annual fee of Rs 999 remains reasonable.
Exploring the Cashback Benefits
SBI Cashback Credit Card has recently made adjustments to its cashback offerings. It’s essential to note that it no longer provides a 5% cashback on all online merchant spending.
Cashback by Purchase Type:
- Education, Fuel, Jewelry, Insurance, Rent, Utilities, Wallets: NIL
- Other Online Spends: 5%
- Other Offline Spends: 1%
The exclusion of categories such as education, jewelry, and utilities from even the 1% cashback category is surprising. Additionally, the 5% cashback now comes with a cap of Rs 5000 per statement cycle, which is a 50% reduction from the earlier cap of Rs 10,000. However, this cap can still be reasonable for those who consistently spend Rs 1 Lakh or more each month.
How is the 5% cashback calculated for SBI Cashback Card?
Contrary to providing a straightforward 5% cashback on spending, SBI Cashback Credit Card employs a unique calculation method. It offers 1% cashback for regular spending and an additional 4% bonus for offline spending. These percentages are then rounded down to the nearest integer. For example, if your total spending is Rs 2345 and you qualify for a 5% cashback:
- 1% of Rs 2345 is Rs 23.45, rounded down to Rs 23
- 4% of Rs 2345 is Rs 93.80, rounded down to Rs 93
Hence, your total cashback will amount to Rs 116 or 4.94%.
Cashback Redemption
The cashback earned with SBI Cashback Credit Card is automatically credited to your statement every month within two working days of statement generation. SBI Card also sends a cashback credit notification once this is completed. Importantly, there are no redemption charges. However, it’s worth noting that SBI Card does not provide a transaction-wise cashback breakdown in the statement, necessitating manual calculation to determine eligible cashback.
Pros and Cons
Pros
- 5% cashback on online merchant spends
- The monthly 5% cashback cap at Rs 5000 is reasonable
- Ideal for substantial spending on online merchants, as other cashback cards often have lower rewards caps
Cons
- Many categories no longer qualify for even 1% cashback
- Achieving the Rs 2 Lakhs spend waiver may be challenging, as significant purchases like utilities and insurance don’t yield any cashback
- No complimentary airport lounge access
- Not eligible for instant discounts during online sales
Comparing SBI Cashback Card with Other Cashback Credit Cards
If you hold multiple cashback credit cards, you can use this forum thread to compare cashback rates across all of them. This will help you find the best cashback credit card that suits your spending patterns.
Complimentary Airport Lounge Access
Regrettably, SBI Cashback Credit Card no longer offers any complimentary airport lounge access, following the devaluation that took effect on May 5, 2023.
Last Thoughts
While the recent devaluation has undoubtedly impacted the appeal of the SBI Cashback Credit Card, it remains a viable choice if you primarily spend on online merchants outside of Flipkart and Amazon. However, for other types of spending, alternative options might be more rewarding. Keep in mind that credit cards should offer benefits beyond just cashback and rewards, and the absence of airport lounge access with the SBI Cashback Credit Card, even with its annual fee of Rs 999, may be disappointing to some users.
Frequently Asked Questions (FAQs) about the SBI Cashback Credit Card
1. What is the SBI Cashback Credit Card?
- The SBI Cashback Credit Card is a credit card offered by the State Bank of India that provides cashback rewards on certain types of spending.
2. How does the cashback feature work on this card?
- The cashback is calculated at 1% for regular spending and an additional 4% bonus for offline spending. These percentages are then rounded down to the nearest integer. For example, if you spend Rs 2345 and qualify for a 5% cashback, you’ll receive Rs 116 as cashback.
3. Are there any limitations on the cashback rewards?
- Yes, SBI Cashback Credit Card has restrictions on the cashback rewards. It no longer offers a 5% cashback on all online merchant spending. Categories like education, jewelry, and utilities no longer qualify for cashback, and the 5% cashback has a cap of Rs 5000 per statement cycle.
4. Is there an annual fee for this credit card?
- Yes, the annual fee for the SBI Cashback Credit Card is Rs 999+GST. However, it can be waived if you spend Rs 2 Lakhs or more in a membership year.
5. How can I apply for this credit card?
- You can apply for the SBI Cashback Credit Card through the referral link mentioned in the article, which also offers a Rs 500 Amazon gift voucher as a joining benefit.
6. Does this credit card offer any airport lounge access?
- No, the SBI Cashback Credit Card does not provide any complimentary airport lounge access.
7. Are there any redemption charges for cashback?
- No, there are no redemption charges for cashback earned on the SBI Cashback Credit Card. The cashback is automatically credited to your statement every month.
8. Can I compare this card with other cashback credit cards?
- Yes, you can compare the cashback rates of the SBI Cashback Credit Card with other cashback credit cards using the provided forum thread in the article to find the best option for your spending habits.
9. Is this credit card still worth considering despite the recent devaluation?
- Whether the SBI Cashback Credit Card is worth considering depends on your spending patterns. If you primarily spend on online merchants outside of Flipkart and Amazon, it can still be a good choice. However, for other types of spending, alternative cards with different benefits may be more suitable.
10. What happens if I don’t spend Rs 2 Lakhs in a membership year to get the annual fee waiver? –
- If you don’t meet the Rs 2 Lakhs spend requirement, you will be charged the annual fee of Rs 999+GST for the SBI Cashback Credit Card.