SBI has recently launched a new cashback credit card – SBI Cashback credit. At first glance, it appears to be the only card you ever need. However, the reality is slightly different. Nonetheless, SBI Cashback credit card is indeed a very solid card but not the only card you ever need. Read on to find out why.
SBI Cashback Credit Card
Fees and Eligibility
- No joining fee.
- Annual fee of 999+GST (~1180 per year) from 2nd year onwards. Waived off on spends of over 200,000.
Rewards and Benefits:
- Reward Points:
- 5% cashback on all online spending (Rent payment, wallet load, merchant EMI excluded). Max 10,000 cashback per month i.e. online spending of up to 200,000 per month eligible for 5% cashback
- 1% cashback on utility bill payments and all offline spending (fuel spends excluded)
- Cashback auto credited in next month’s statement. No redemption fee.
- Lounge access: 4 complimentary domestic lounge access (1/quarter).
Thoughts on SBI Cashback credit card
SBI Cards has created quite a buzz on social media with the launch of the SBI Cashback credit card. The highlight of this card is the no-nonsense reward structure and the 5% cashback on online spending with a liberal cap of 200,000 spends per month. What it means is that all online spends of up to 200,000 per month are eligible for 5% cashback. That’s a whopping max cashback of 10,000 every month. That is not all, the cashback reflects in your next card statement.
Within online spends utility bill payments, rent payments, wallet loads and merchant EMIs are excluded from 5% cashback. This, in my opinion, means that the 5% cashback feature will continue for a long time and won’t be pulled back in a jiffy. A-la Zomato Edition credit card, 10% birthday cashback offer.
Utility bill payments fetch just a 1% cashback. This is disappointing for sure. Maybe, SBI could have given a 2% cashback with a cap of 1000 per month to make SBI Cashback credit card a killer credit card. As of now, it’s not clear if insurance payments are counted as utility payments or online spending. For my calculations, I have assumed 1% cashback for insurance payments. Nevertheless, this needs to be confirmed by the early users of the SBI Cashback credit card.
So what’s included in online spending? Spends done on Amazon, Flipkart, Zomato, Swiggy, Ola, Uber, Train & Flight bookings etc will be counted as online spends. Since SBI has mentioned that there are no merchant restrictions, means that as long as the merchant MCC is not classified as utility/rent or wallet load you will earn a 5% cashback.
Is the SBI Cashback credit card the only card you ever need?
The answer is No! While the 5% cashback on all online spends seems very exciting. When we run the numbers and include other spends such as utility, fuel and offline spends; the reward rate comes at ~2.5%, which is very good but not mouth-watering. One reason is my assumption that insurance spends will give only 1% cashback.
Nonetheless, with the right strategy, you can easily earn 5% on nearly all spends every month.
What should be the strategy with SBI Cashback Card?
SBI Cashback credit card can easily replace many co-branded cards from your wallet. Namely ICICI Amazon credit card, Axis Flipkart, RBL Zomato Edition, and SBI Simplyclick. With this card, you really don’t need so many co-branded credit cards in your wallet.
As I mentioned earlier, while the 5% cash back on the SBI Cashback card is exciting; however, the overall reward rate on all spending is not mouth-watering. However, if you have 3 cards, SBI Cashback, Axis Ace and Amex MRCC, you can earn ~5% on all nearly all spends.
Use the SBI Cashback card for all online spends – straight 5% cashback. Axis Ace credit card for all utility bill payments thru the GPay app – 5% cashback. Amex MRCC at HP petrol pumps and insurance payments. As long as your Amex MRCC spends 20k+ a month on 4+ transactions you will earn 2000 points worth anywhere between 750-1200 bucks.
Can I replace my existing SBI card?
This seems to be possible in theory. As this is a specific question answered in the FAQs (refer Q10) of the website. However, many who got in touch with the customer care received a negative reply. Maybe we need to wait for a few days for systems to streamline and for the executives to be trained for this new card. Post that it should be possible.
SBI Cashback credit card is a simple and powerful credit card. For someone looking for a simple cashback card for online spends, this is a one-stop shop. Further, if you use the SBI Cashback credit card in combination with Axis Ace and Amex MRCC you can easily earn 5% cash back on all your spends. So the answer is very clear. 🙂
In the interest of full disclosure, Credit Cardz may earn a referral bonus for anyone that’s approved through some of the links in this post. However, opinions and views expressed here are of the author's alone and not those of the bank, credit card issuer, or anyone else and have not been reviewed, approved or otherwise endorsed by any of these entities.
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Very well summed up. It surely is good substitute for co-branded credit cards. I tried applying vis SBI Sprint link but got rejected. I already have one SBI card in use. And latest CIBIL score is 745. Should I try offline?
If you are rejected I’m not sure if applying offline will help. But no harm in trying out.
Thank you. Will confirm from offline agent.
Prasad Jayant Deshpande
The online spend amount has to be in between 500 to 3000 rs, true?
online spends 5% cashback includes spending in paytm
On paytm mall. Not paytm wallet
1)Insurance paid through Amazon portal gives 5% or 1%?
2)does gold purchase using sbi cashback card give 1% at any jewelry shop.
Not sure where insurance comes.
I am waiting for someone who gets this card to confirm this
Uday Kumar Garimella
Insurance comes under utilities as mcc6300 is mentioned as utilities
Comes under utility. Rather buy gift card which fetches 5% and then pay via apay
2%.best for insurance purposes
Please check your sheet SimplyCLICK give 2.5 percentage on amazon
Sbi is reducing the rewards for simplyclick credit card to 1.25 percentage on amazon From Jan 1st 2023
Hey what about gift cards does these come under 5% category.
Why will purchase of Gift Cards not qualify for 5% cashback? What is the MCC for Gift Cards and where is it mentioned in the T&C that it will not qualify for 5% cashback?
Has anyone got any update on spending on gift cards ? Do we get 5 per cent cashback)
I read a lot of reviews on twitter that’s users are getting 5% cashback for gift cards. Also, they get additional discount by buying the GV from some SBI portal.
Please note that with SBI Cashback Credit Card, Insurance Premium Payment will be under 1% cashback category as according to the T&C of the card, it is considered as “Utility Payment”. The MCC code for Insurance premium payment is 6300 which is mentioned under the 1% cashback category in the T&C.
So, for insurance premium payment if you have HDFC Regalia credit card and if you would like to use it’s points for Flight/Hotel booking then with that card you will get 1.32% reward while SBI Cashack will give you 1% reward rate. But if you do not have such requirement then you can definitely use this card as with Axis Ace you will get nothing.
Also do note that in SBI Cashback Card T&C they have also mentioned that MCC 9399 will be considered as “Utility” and will get 1% cashback. MCC 9399 is for Government Services Payment like Tax and other things.
Just a few things to keep in mind. Thanks for the great detailed review.
P.S.: There is so far co current restriction for jewelry purchase. But in future it might be imposed if people start misusing the card features. MCC for Gold/Jewelry purchase is 5944. So, keep an eye out for it in future revision of the T&C of the card.
Awesome insights Saumya. Thanks a ton for the inputs
One more thing I forgot to mention in my above comment is that SBI card team is basically lying to users saying the card will provide 5% cashback. It won’t. It will only provide 4.91% cashback. So if you buy stuff worth ₹1169/- instead of being ₹58 (5%) cashback, you will only get ₹57 (4.91%) cashback.
Check this tweet of mine to see the details of their cashback calculation: https://twitter.com/iSaumya/status/1567478752879443975?t=z3oSc40jRmen0MkWTKvY5Q&s=19
So share this correct info with the readers and the world. Thanks.
This is what happens with most credit cards.
Hdfc gives points only on multiple of 150. Axis magnus and many other cards gives only on multiple of 200. The remainder portion dont fetch points.
Yes and No. If you check the terms of Axis Ace or Flipkart or ICICI Amazon Pay all of which are cashback cards but none of them make fool of people like this. This is really bad. SBI Card shouldn’t say 5% cashback when they are actually not giving 5%.
In reality it’s a 4.91% cashback card in most cases. No other bank does cashback calculation like this wired way (1% + 4% = 5%).
The cards you have mentioned in your comment are all reward points based card and in that segment it’s a standard practice. But that’s not the case in cashback segment except this card.
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With Axis Ace Card, I got 2% cashback for insurance premium payment.
from this month onwards no such cash back on insurance even with Axis Ace, terms have changed
Will an insurance or an utility payment made through Amazon Pay be seen as a transaction against the insurance/utility MCC or Amazon’s MCC?
Get 2% cashback through Amazon Pay ICICI credit card on amazon
Tax payments like advance tax payments will fall under MCC 9311 or 9399, any idea?
SBI is cheating customers into application. I applied for this card and in response got a call from SBI card saying that it is yet not launched. If it is launched then it will take 5-6 months time for launching. Also they are not certain that they are going to launch this card. I was asked to apply for simply save credit card. When I denied that I want my application for cashback card only. They told that they cannot process as it is not yet launched. They have already performed cibil enquiry for this application.
Currently this card is only available in online application mode. If you try to apply offline for this card you will get response like this. But via the sbi card website you can apply online.
I applied via YONO app. I have application number. It was supposed to be call for KYC
That’s the mistake you have made. You should have applied via SBI cards website as it’s a separate entity than SBI Bank. Anyways try applying via SBI cards website and see what happens.
Will we get cashback n other less know merchants like mamearth, and other product websites or only brand ones?
yes. Mamaearth will be classified at online merchant.
i have being following your website for reference for my youtube video why don’t you have youtube channel?
let’s collab and make youtube channel…..
Please give your review on standard charted Smart credit card
will do a review soon. But a quick glance on the card indicates that 2% cashback is capped at 1000 per month and 1% is capped at 500 per month. In the light of SBI Cashback giving unlimited 5% on online spends and 1% otherwise, why would anyone take StanC Smart card? Further, the reach and probability of approval for SBI is far higher than StanC.
Avinash Devadhar S
Hi, I just applied and got the card. I am not able to see the card number anywhere though, how to do it ?
Muthukumaran N M
It is on the back side
I am hearing like SBI is giving only 10K spending limit for Cashback credit card. Then how can we increase the spending limit?
credit limit enhancement is prerogative of the card issuers. It completely depends on them
10K Credit limit for existing customers mostly.
Solution: Transfer some credit limit from existing SBI card to your New Cashback Card
Same done in my case
How do we do that?
When we make the Electricity bill payment via Amazon Pay, what is the % cash back available on the card?
It depends MCC code or merchant name that comes on your transaction. At times bill payment from Amazon comes as Amazon BD – that should probably give you 5% cashback. If it comes Amazon Utilities, then only 1% cashback
I was planning on getting my first credit card but was a bit confused between 2-3 cards, thank you so much for this article it really helped in clearing some doubts.
not working on IRCTC train bookings
During amazon Diwali offers sbi cashback credit card was not applicable disappointing
What do you mean? It was not available for the Amazon 10% cashback or that the 5% cashback for online spends was not applicable?
Yes it was excluded from 10% instant discount
Sahil Vijay Shah
Unable to get an application for the card, I closed my SBI Elite card as I was not utilizing that a lot. I have not received any responses from SBI and online application just says someone will contact you for your application
I just bought the SBI Card through the refferal link,
Can you help me understand more about if insurance payments are counted as utility payments or online spending?
and if so, is it also confirmed that i will get 1.5% cashback through the Axis flipkart Credit card?
Insurance payment done will be counted as utility bill payment thus 1%. The same is incorporated in the dynamic excel sheet.
Flipkart card gives 1.5% base cashback.
Changed now, Axis Flipkart card stopped cashback on Insurance from Mar’23
As per new rules of SBI, points won’t be credited on sale times, i.e., for ex if you get a 10% (or any % for that matter) then the points applicable for that amount won’t be processed.
Is this true?
Reward Points accrued on transactions eligible for Instant Discount and Cashback offers will be forfeited, for offers as per Program T&C. Reward Points will be forfeited for all transactions done during offer period and considered for Offer computation. In case cardholder does not have adequate Reward Points balance at the time of forfeiture, an amount equal to the deficit in the Reward Points will be debited from the card account. T&C
My understanding here is in the above example you will get base reward points that is 1% instead of 5% on Amazon.
Do we get cashback if we pay uber/ola using sbi cashback card ? I can’t see cashback for it. Can someone confirm this.
My sense is you get 5%.
Dont have the card to confirm this though.
Tax payments like advance tax payments will fall under MCC 9311 or 9399, any idea?
full scam going on here by sbi cancelling people cashback.
W.r.t. insurance, yes 5%. Reason being i made an insurance premium payment of 21k. Out of this i made 20k from amazon pay wallet. And to test, only 1k from the card. Got 5% on 1k.
You were lucky I made a small insurance payment to test I got only 1% and later cc also confirmed that it’s a utility payment hence only 1% cash back. I raised the complaint till head of CS but got the same reply.
how to pay car insurance hdfc ergo via amazon pay wallet?
can i apply this card by card to card basis, i have hdfc credit card