- Joining Fees: Rs 999 + GST
- Annual Fees: Rs 999 + GST
- 5% Cashback on Online spends
- 1% Cashback on Offline Spends
- Save Upto Rs. 60000 Annually
The SBI Cashback Credit Card, issued by SBI Card, a subsidiary of the State Bank of India, is an entry-level credit card designed to reward users with cashback on everyday purchases, with a strong emphasis on online spending. Launched to cater to the growing demand for cashback rewards, this card targets beginners and moderate spenders who value simplicity and convenience. It offers a flat 5% cashback on online spends without merchant restrictions and 1% on offline spends, alongside features like contactless payments, global acceptance, and utility bill payment facilities. This comprehensive review explores the card’s features, rewards, fees, pros, cons, peer comparisons, and recommendations to help potential cardholders make an informed decision.
SBI Cashback Credit Card Review
The SBI Cashback Credit Card is a solid choice for beginners and online shoppers due to its high 5% cashback on online spends without merchant restrictions. Its automatic cashback crediting and contactless payment feature enhance user convenience, while global acceptance and add-on cards add versatility. However, the ₹5,000 monthly cashback cap, multiple category exclusions, and lack of premium benefits like lounge access limit its appeal for high spenders or frequent travelers. The ₹999 annual fee, while waivable, is higher than some competitors, and the 3.5% foreign markup fee is a drawback for international use.
Compared to peers, the SBI Cashback Card excels in general online spending but falls short in niche categories (e.g., Amazon or Swiggy) where competitors offer higher rewards. It’s best suited for users with significant online spends who can meet the ₹2,00,000 threshold for fee reversal. For those focused on specific merchants or seeking additional perks like lounge access, cards like the Axis Ace or Amazon Pay ICICI may be more appealing.
Rewards and Benefits
The SBI Cashback Credit Card is structured to provide a hassle-free rewards experience, particularly for online shoppers. Below is a detailed breakdown of its rewards and benefits:
Cashback Structure
- 5% Cashback on Online Spends: The card offers a competitive 5% cashback on all online transactions, regardless of the merchant, making it highly versatile for e-commerce purchases. The cash ніч is capped at ₹5,000 per statement cycle, which translates to ₹1,00,000 in online spends per cycle.
- 1% Cashback on Offline Spends: Offline purchases, such as in-store shopping, earn a standard 1% cashback, which is modest but consistent with industry norms for entry-level cards.
- Exclusions: Cashback is not applicable on several key categories, including Merchant EMI, Flexipay EMI, utility bills, insurance, fuel, rent, wallet loads, school and educational services, jewelry, and railways. For a complete list of exclusions, cardholders can refer to SBI Card’s Terms and Conditions.
- Hassle-Free Redemption: The cashback is automatically credited to the cardholder’s account within two days of the next statement generation, eliminating the need for manual redemption or point conversions. This feature enhances user convenience, especially for those new to credit cards.
Spend-Based Renewal Fee Waiver
- The card comes with an annual renewal fee of ₹999, which is waived if the cardholder achieves annual spends of ₹2,00,000 or more. This threshold is attainable for moderate to high spenders, effectively making the card cost-free for those who use it regularly.
- Cardholders receive a 1% fuel surcharge waiver on transactions between ₹500 and ₹3,000 at petrol pumps across India, exclusive of GST and other charges. The waiver is capped at ₹100 per statement cycle per credit card account, offering modest savings for those who frequently refuel.
Contactless Advantage
- The card supports contactless payments through VISA PayWave technology, allowing users to tap and pay for transactions up to ₹5,000 without entering a PIN. This feature is particularly convenient for small-ticket purchases at retail outlets, cafes, or transit points. The card remains in the cardholder’s possession during transactions, reducing the risk of skimming or fraud. Additionally, the unique security key ensures that multiple taps at a reader result in only one transaction, enhancing security.
Worldwide Acceptance
- The SBI Cashback Credit Card is accepted at over 24 million outlets globally, including 3,25,000 outlets in India, making it a reliable option for both domestic and international purchases. It can be used at any merchant that accepts VISA, ensuring broad usability for travel and everyday spending.
Add-on Cards
- Cardholders can request add-on cards for family members above 18 years, such as parents, spouses, children, or siblings. These add-on cards share the primary card’s credit limit and benefits, allowing families to consolidate spending and maximize cashback rewards.
Cash on the Go
- The card enables cash withdrawals from over 1 million VISA ATMs worldwide, providing flexibility in emergencies. However, cash advances come with high fees and interest rates, making this feature less cost-effective unless absolutely necessary.
Utility Bill Payment Facility
- Through the Easy Bill Pay facility, cardholders can pay electricity, telephone, mobile, and other utility bills directly using the card. This streamlines bill management and integrates it into the card’s spending ecosystem, although utility payments do not earn cashback.
Balance Transfer on EMI
- The card offers a balance transfer facility, allowing cardholders to transfer outstanding balances from other banks’ credit cards to the SBI Cashback Card at a lower interest rate, repayable in EMIs. This feature, accessible via sbicard.com with login credentials, helps users manage credit card debt more affordably.
Fees and Charges
Understanding the fee structure is essential to assess the card’s cost-effectiveness. Below is a detailed overview of the fees and charges associated with the SBI Cashback Credit Card:
- Joining Fee: ₹999 + GST, charged as a one-time fee upon card issuance.
- Renewal Fee: ₹999 + GST annually, waived if annual spends exceed ₹2,00,000.
- Finance Charges: 3.5% per month (42% annually) on outstanding balances, which is standard but high for unpaid dues, encouraging timely payments.
- Cash Advance Fee: 2.5% of the withdrawn amount or ₹500, whichever is higher, making cash withdrawals costly.
- Foreign Currency Markup Fee: 3.5% on international transactions, which is relatively high compared to some competitors offering 1.99%–2% markup fees.
- Late Payment Fees (based on outstanding balance):
- Nil for dues below ₹500.
- ₹400 for ₹500–₹1,000.
- ₹750 for ₹1,000–₹10,000.
- ₹950 for ₹10,000–₹25,000.
- ₹1,100 for ₹25,000–₹50,000.
- ₹1,300 for dues above ₹50,000.
- Over-Limit Fee: 2.5% of the over-limit amount or ₹600, whichever is higher.
- Rent Payment Processing Fee: ₹199 per transaction, which is non-refunded and makes rent payments less rewarding.
Pros
- Competitive Online Cashback: The 5% cashback on online spends without merchant restrictions is a standout feature, ideal for frequent e-commerce users.
- Hassle-Free Rewards: Automatic cashback crediting within two days of statement generation simplifies the reward process, making it beginner-friendly.
- Contactless Payment Convenience: The tap-to-pay feature enhances speed and security for small transactions, reducing the need for cash or PIN entry.
- Global Acceptance: With usability at over 24 million outlets worldwide, the card is versatile for domestic and international spending.
- Renewal Fee Waiver: The ₹2,00,000 annual spend threshold for waiving the renewal fee is achievable for moderate spenders, effectively reducing costs.
- Utility Bill Payments: The Easy Bill Pay facility streamlines bill management, adding convenience for routine expenses.
- Balance Transfer on EMI: Offers a cost-effective way to consolidate and repay credit card debt from other banks.
- Add-on Cards: Free add-on cards for family members allow consolidated spending and reward accumulation.
Cons
- Cashback Cap: The ₹5,000 monthly cashback cap (equivalent to ₹1,00,000 in online spends) limits rewards for high spenders.
- Multiple Exclusions: Key spending categories like utilities, insurance, fuel, rent, and wallet loads are excluded from cashback, reducing the card’s versatility.
- High Annual Fee: The ₹999 annual fee is steep compared to no-fee competitors like the Amazon Pay ICICI Card, especially for low spenders.
- No Lounge Access: Unlike some peer cards, it lacks airport lounge access, a drawback for frequent travelers.
- High Foreign Markup Fee: The 3.5% fee on international transactions is higher than some competitors, making it less cost-effective for overseas use.
- No Milestone or Welcome Benefits: The absence of introductory offers or milestone rewards limits its appeal compared to competitors.
- High Finance Charges: The 42% annual interest rate on unpaid balances is steep, discouraging carrying a balance.
- Rent Payment Fees: The ₹199 processing fee for rent payments, without cashback, makes this feature less attractive.
Detailed Comparison with Peer Cards
The SBI Cashback Credit Card competes with other entry-level cashback cards in India. Below is a detailed comparison with three popular alternatives: the Amazon Pay ICICI Card, HDFC Swiggy Card, and Axis Ace Card.
|
Feature |
SBI Cashback Card |
Amazon Pay ICICI Card |
HDFC Swiggy Card |
Axis Ace Card |
|
Annual Fee |
₹999 (waived on ₹2L spend) |
None |
₹500 (waived on ₹2L spend) |
₹499 (waived on ₹2L spend) |
|
Online Cashback |
5% (capped at ₹5,000/month) |
5% (Prime), 3% (non-Prime) on Amazon; 1% elsewhere |
5% (₹1,500 cap), 10% on Swiggy |
5% on select merchants, 2% on utilities |
|
Offline Cashback |
1% |
1% |
1% |
1.5% |
|
Cashback Exclusions |
Utility, insurance, fuel, rent, etc. |
None on Amazon, limited elsewhere |
Limited on non-Swiggy spends |
Limited on non-partner spends |
|
Fuel Surcharge Waiver |
1% (₹100 cap/month) |
None |
None |
1% (₹100 cap/month) |
|
Lounge Access |
None |
None |
None |
4 domestic visits/year |
|
Foreign Markup Fee |
3.5% |
3.5% |
3.5% |
3.5% |
|
Welcome Benefits |
None |
₹500 Amazon Pay balance (Prime users) |
₹500 Swiggy Money |
₹500 Google Pay voucher |
|
Best For |
General online shopping |
Amazon shoppers |
Swiggy users |
Utility bill payments |
Analysis of Competitors
- Amazon Pay ICICI Card: A no-fee card with 5% cashback for Amazon Prime members on Amazon purchases, making it ideal for Amazon loyalists. However, its rewards outside Amazon are limited (1%), and it lacks fuel surcharge waivers or lounge access. It’s best for frequent Amazon shoppers who don’t mind lower rewards on non-Amazon spends.
- HDFC Swiggy Card: Offers 10% cashback on Swiggy-related spends (food delivery, dining, Instamart) but has a lower cashback cap (₹1,500/month). It’s tailored for Swiggy users but less versatile for general spending, with no fuel surcharge waiver or lounge access.
- Axis Ace Card: Provides 5% cashback on select merchants (e.g., Google Pay, Flipkart) and 2% on utility bills, making it more flexible for bill payments. It also includes four domestic lounge visits per year, a rare perk in this segment, and a lower annual fee (₹499).
Recommendations
The SBI Cashback Credit Card is a strong contender for individuals who frequently shop online and value simplicity in rewards. Its 5% cashback on online spends without merchant restrictions is a key strength, making it ideal for e-commerce enthusiasts. The automatic cashback crediting and contactless payment feature further enhance its appeal for beginners and those seeking convenience. However, its limitations, such as the ₹5,000 monthly cashback cap, multiple category exclusions, and high annual fee, make it less suitable for high spenders or those with diverse spending patterns.
Who Should Choose This Card?
- Online Shoppers: Individuals who spend significantly on e-commerce platforms (e.g., Amazon, Flipkart, Myntra) will benefit from the 5% cashback, especially if they can maximize the ₹5,000 monthly cap.
- Beginners: The straightforward reward structure and automatic cashback crediting make it an excellent entry-level card for those new to credit cards.
- Moderate Spenders: Those who can achieve ₹2,00,000 in annual spends to waive the renewal fee will find the card cost-effective.
- Families: The add-on card feature allows families to consolidate spending and earn rewards collectively.
Who Should Look Elsewhere?
- High Spenders: The ₹5,000 monthly cashback cap limits rewards for those with high online spending, who may prefer cards with higher or uncapped rewards.
- Frequent Travelers: The lack of lounge access and high 3.5% foreign markup fee make it less appealing for international travelers, who may prefer cards like the Axis Ace Card with lounge benefits.
- Niche Spenders: Those with significant spending on specific platforms (e.g., Amazon, Swiggy) or categories like utilities may benefit more from specialized cards like the Amazon Pay ICICI Card or Axis Ace Card.
- Low Spenders: Individuals unlikely to meet the ₹2,00,000 annual spend threshold may find the ₹999 annual fee burdensome compared to no-fee alternatives.
Strategic Usage Tips
- Maximize Online Spends: Focus on online purchases to leverage the 5% cashback, aiming to reach the ₹1,00,000 monthly spend cap for maximum rewards (₹5,000 cashback).
- Meet the Fee Waiver Threshold: Plan annual spends to exceed ₹2,00,000, particularly through online transactions, to waive the renewal fee.
- Use Contactless Payments: Utilize the tap-to-pay feature for small, frequent transactions to enhance convenience and security.
- Avoid Cash Advances: Due to high fees and interest rates, avoid using the card for cash withdrawals unless absolutely necessary.
- Leverage Balance Transfer: If carrying balances on other credit cards, use the balance transfer on EMI feature to reduce interest costs.
- Pay Bills on Time: Avoid the high 42% annual finance charge by paying the full statement balance before the due date.
Alternative Options
- Amazon Pay ICICI Card: Ideal for Amazon Prime members with frequent Amazon purchases, offering 5% cashback and no annual fee.
- HDFC Swiggy Card: Best for Swiggy users, with 10% cashback on Swiggy spends and a lower annual fee (₹500).
- Axis Ace Card: Suitable for those with utility bill payments or seeking lounge access, with a lower annual fee (₹499) and broader reward categories.
Final Thought
The SBI Cashback Credit Card is a compelling choice for online shoppers and beginners due to its high 5% cashback on online spends, hassle-free rewards, and global acceptance. However, its cashback cap, category exclusions, and high annual fee limit its appeal for high spenders, frequent travelers, or those with niche spending patterns. By comparing it with peers like the Amazon Pay ICICI Card, HDFC Swiggy Card, and Axis Ace Card, potential cardholders can assess whether its benefits align with their spending habits. For moderate online spenders who can meet the fee waiver threshold, this card offers significant value, but those with specialized needs may find better alternatives.
Sources: SBI Card Official Website, SBI Cashback Card Terms and Conditions, competitor card details from respective bank websites.
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