SBI came up with the SBI Cashback credit card to complete with other popular credit cards like Amazon Pay ICICI card and the Flipkart Axis credit card. This card like the other two is a cashback card with lesser restrictions and gives upto 5% cashback which means it can be a great card for beginners and maybe even some advanced credit card users. Here’s everything you need to know about this exciting must-have cashback credit card.
Overview
SBI Cashback Credit Card is one of the best cashback credit card in the country hands down. This card is well suited for those who want to carry just a single credit card and shop online as this gives you 5% cashback on online spends with a capping that should meet the requirements for majority of the customers out there.
Even some of the super premium credit cards are also not giving 5% cashback like this card does.
| Type | Cashback Credit Card |
| Reward Rate | Upto 5% |
| Best for | Online shopping to get up to 5% cashback |
Design
The card comes with a vertical lettering design which makes it stand out a bit compared to other plastic cards. Card number is on the back so that makes the front side looks clean which only has the SBI and card logo.
Fees & Charges
Joining & Renewal Fees
| Joining Fee | Rs. 999 + 18% GST |
| Joining Fee Waiver | N/A |
| Joining Benefit | N/A |
| Renewal Fee | Rs. 999 + 18% GST |
| Renewal Fee Waiver | waived off on spending Rs. 2 Lakhs |
| Renewal Benefit | N/A |
Although the joining fee is not that high, there should have been a joining benefit like a amazon or flipkart voucher to compensate for the joining fee. Nevertheless, the renewal fee waiver criteria is still something which many might be able to take advantage of.
Note: There might be some offers during festival season to get the card free for first year.
Other Charges
Supplementary Card
One can apply for max. 3 supplementary cards. There is no fee for applying for an add-on card.
Forex Payments
3.50% of the transaction value + 18% GST (which adds up to 4.13%)
Tip: If you use this card for foreign spending online, you get effectively ~0.9% cashback but avoid using it for offline transactions in which case you would end up paying 3.13% extra (4.13% – 1% cashback).
Fuel Purchases
There is no cashback on fuel purchases but you do get 1% fuel surcharge waiver across all petrol pumps in India as long as transactions are between Rs. 500 – Rs. 3000, exclusive of GST and other charges.
Ex. If you purchase fuel of Rs. 2000 then 1% surcharge of Rs. 20 is first applied and then waived off but the 18% GST of Rs. 3.6 is levied.
There is a capping of Rs. 100 per statement cycle for surcharge waiver per credit card account which should be enough if your monthly fuel expenses are below Rs. 10000.
Rent Payments
For rent payments, an additional charge of Rs. 199 + 18% GST is levied. Also, cashback is not applicable as well so I would recommend to avoid this card for rent payments unless you really have to.
Utility Payments
If the utility payments (Water, Gas, Electricity, etc.) exceeds Rs. 50000 in a billing cycle then a 1% fee will be charged on total amount (not just the excess of Rs. 50000). Any transaction reported with Merchant Category code 4900 by the network partners to SBI will be considered an utility payment.
EMI Fees
For EMI transactions, an additional charge of Rs. 199 + 18% GST is levied.
Benefits
Cashback
The cashback is in the form of statement credit which is the best type of cashback :).
| Spend Category | Cashback Rate |
|---|---|
| Online Spends | 5% |
| Offline Spends | 1% |
| Exclusions | Rent Payments, Fuel Spends, Wallet loads & EMI txns, Jewelry, School & Educational Services, Utilities, Insurance Services, Gift Card, Novelty & Souvenir Shops, Member Financial Institution/Quasi Cash, Railways |
With the recent devaluation of the card a lot of exclusions has been added when it comes to online spends that are not eligible for cashback. This has been done to ensure the card is used for shopping and not just any online spend to exploit 5% cashback. With lot of us getting smart about how to use the cards to get discount/cashback on utilities as well, SBI has stopped giving cashback on gift cards too. Few things to note-
- Cashback is not applicable on transactions less than Rs. 100.
- IRCTC/NPS payments gets only 1%
- Cashback is credited to card account within two working days of the statement generation date.
- Max. cashback that can be earned in a statement cycle is Rs. 5000.
Note: On Amazon and Flipkart, this card will only get 5% cashback. No double dip is possible on this card as SBI cashback card is not considered for getting upfront discounts.
Tip 1: Use this card on Tata Neu to buy grocery to get 10% cashback (5% as neucoins + 5% as cashback)
Tip 2: You can buy amazon pay vouchers and use those for insurance & utilities payments to still get 5% cashback.
Travel Benefits
Airport Lounge Access
This card doesn’t offer complimentary Airport Lounge access anymore post the devaluation.
Best way to use this card
Use only for online spends and try to limit spends to Rs. 1 lakh in a statement cycle to get the maximum benefit.
How to apply
SBI has simplified their online application process and you can get this card, once approved, within a week through their SBI sprint portal using the link below.
[Apply using above link and do a transaction of Rs. 500 or above to get a gift voucher worth Rs. 500]
Verdict
SBI had surprised everyone when they launched this card with 5% cash back without a lot of exclusions and a generous capping on cashback. It was selling like a hot cake back then. But within the 1st year of the launch of this card, it got devalued which was quite frankly expected as well. They even removed the lounge benefits entirely.
Still, it is one of the best cash back cards that you can get and will definitely be more than enough for moderate spenders as long as they only do online spends. For now, I still see this as a must have no-nonsense card which is suitable for anyone who doesn’t want to manage multiple cards for shopping at different online portals.
What are your thoughts about the SBI Cashback Credit Card? Feel free to share your views in the comment section below.
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