So, SBI has just launched a new credit card in partnership with Flipkart, and it's making a lot of noise. The main reason? It's promising a massive 7.5% cashback! Given the name, it's pretty clear this is a co-branded card designed for Flipkart shoppers.
In this blog post, we'll dive deep into all the features of the new SBI Flipkart Credit Card. We'll also do a head-to-head comparison with the popular Axis Bank Flipkart Credit Card to see which one comes out on top. Plus, we'll weigh in on whether either of these cards is the best choice for you or if there's an even better option out there. Let's get into it.
Fees and Welcome Benefits
The SBI Flipkart Credit Card comes with a joining fee of ₹500 plus 18% GST, bringing the total to ₹590. The annual fee is also ₹590. You can get a waiver on the annual fee if your total spending in a year exceeds ₹3.5 lakh. This is the same fee structure as the Axis Bank Flipkart Credit Card.
However, the welcome benefits are where the two cards start to differ.
- Applying via SBI: If you apply for the card directly from the SBI website, you'll receive a Flipkart voucher worth ₹250 as a welcome benefit.
- Applying via Flipkart: The real value comes when you apply through the Flipkart website or app. In this case, you'll get a total welcome benefit of ₹1,250, which includes a ₹250 Flipkart voucher, an additional ₹500 Flipkart voucher, and a ₹500 Cleartrip voucher.
The Axis Bank Flipkart Credit Card offers a welcome benefit of ₹250 on Flipkart and an additional ₹100 Swiggy voucher for new Swiggy users, totaling ₹350. So, in terms of welcome benefits, the SBI Flipkart card is a clear winner, especially if you apply through Flipkart.
Cashback Structure and Partner Brands
This is the most important part of any cashback card. The SBI Flipkart Credit Card offers a tiered cashback structure.
- 7.5% Cashback: On all spending on Myntra.
- 5% Cashback: On all spending on Flipkart and Cleartrip.
- 4% Cashback: On spending with partner brands Zomato, Uber, Netmeds, and PVR.
- 1% Cashback: On all other spending.
There are some important limitations to note. The 7.5%, 5%, and 4% cashback categories have a maximum quarterly cap of ₹4,000. This means you can get up to ₹4,000 in cashback every three months from each of these categories. The 1% cashback on other spends, however, is unlimited.
The Axis Bank Flipkart Credit Card has a very similar structure, with a few key differences in its partner brands. It offers:
- 7.5% Cashback: On Myntra.
- 5% Cashback: On Flipkart and Cleartrip.
- 4% Cashback: On spending with partner brands Swiggy, Uber, PVR, and Cult.fit.
The caps are also the same—a maximum of ₹4,000 per quarter for the tiered cashback categories.
The choice here comes down to your spending habits. Do you spend more on Zomato and Netmeds or on Swiggy and Cult.fit? This is the main point of difference between the two cards, apart from the welcome benefits.
The Big Question: Which Card Should You Choose?
Both the SBI and Axis Bank Flipkart credit cards are great for people who spend a lot on Flipkart, Myntra, and their associated partners. Given the similar fee structure and cashback rates, the choice between the two largely depends on two factors: the welcome benefit and the partner brands.
- The SBI Flipkart Credit Card gives you a much better welcome benefit (up to ₹1,250) if you apply through Flipkart.
- The Axis Bank Flipkart Credit Card might be better if you frequently use Swiggy and Cult.fit.
However, there's a bigger conversation to be had. The introduction of the ₹4,000 quarterly cashback cap has significantly devalued these cards. Previously, there was no limit on the 5% cashback on Flipkart spends, making it a fantastic card for heavy online shoppers. Now, with the cap, you can only get a maximum of ₹4,000 in cashback on Flipkart per quarter, which translates to a maximum spending of ₹80,000 to maximize your benefit.
For many users, a different card might offer better value. Consider the SBI Cashback Credit Card.
SBI Cashback vs. SBI Flipkart
- Fee: The SBI Cashback Credit Card has an annual fee of ₹999 + GST (approx. ₹1,180), which is slightly higher than the Flipkart card. However, the annual fee is waived if you spend ₹2 lakh in a year.
- Cashback: It offers a flat 5% cashback on ALL online spending, with a monthly cap of ₹5,000. This is a huge advantage. You aren't restricted to specific merchants like Flipkart, Myntra, or their partners. You can use it anywhere online and still get 5% cashback. The monthly cap of ₹5,000 means you can get cashback on up to ₹1 lakh of online spending per month, which is a much higher limit than the Flipkart cards.
While the new SBI Flipkart Credit Card is certainly grabbing attention, the SBI Cashback Credit Card offers a more flexible and, for most people, more rewarding experience. It gives you the same 5% cashback on Flipkart (since it's an online spend) but also on countless other online merchants.
Ultimately, the best credit card is the one that fits your spending habits. Do your own research, but given the current landscape, the SBI Cashback card seems to be a more versatile and profitable option for the average online shopper.
Disclaimer: This blog post is based on information available as of August 2024. Card features, fees, and benefits are subject to change by the issuing bank. Please check the official bank and partner websites for the most current details before applying.