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SBI Elite Credit Card: A Premium Offering

First and foremost, please remember that Credit Card is NOT Cash. Rather, it is a highly practical and convenient tool to make payments, instead of using cash.

Plus, of course, credit card companies offer many exciting freebies.

But, it has dark side too: You MUST ALWAYS clear your credit card bills before the due date. Any delay will make you liable to pay exorbitant interest charges of around 30-50%.

In other words, if used intelligently, credit cards can be exceptionally useful and rewarding.

Given this background, let's see what benefits does the SBI's Elite Credit Card — among the most premium cards in India — has to offer to its cardholders.

Advantage 1: Free e-Gift Voucher
Upon becoming the elite owner of an SBI Elite Card, you receive a welcome e-gift voucher worth Rs.5000.

There is a one-time joining fee of Rs.5000 on these cards. So the free voucher of Rs.5000 means that the first year of the card is absolutely free of cost.

You can redeem this voucher against a wide array of travel and lifestyle brands (such as Yatra, Hush Puppies, Bata, Marks & Spencer, Westside, Shoppers Stop). Hence, if you are thinking of buying new clothes, it would be good to get this Card for sure.

Advantage 2: Free Movie Tickets
Through SBI Elite Card you can book free movie tickets worth up to Rs.500 per month on bookmyshow.com.

This works out to a straightforward benefit worth Rs.6000 every year on your movie tickets. Great news for passionate movie fans!

In other words, even if you use this card for nothing else except for watching movies, your annual renewal fee of Rs.5000 too is more than compensated.

Advantage 3: Bonus Reward Points
You get 2 Reward Points for every Rs.100 spending. But yes, you get 5 TIMES MORE Rewards Points i.e. 10 Reward Points for Dining, Departmental stores, Grocery and International spends.

These are "normal" Reward Points.

In addition, you get "bonus" Reward Points too.

For annual spending between Rs.3 to 4 lakhs, you get 10,000 bonus reward points. 4 Reward Points = Re.1. Hence, this bonus is as good as Rs.2,500 in your pocket.

And for spendings exceeding Rs.5 lakhs in a year, 15000 bonus Rewards Points are credited to your account, which are worth Rs.3,750.

SBI Elite Credit Card can easily bring you more than Rs.30,000 worth of benefits per year.

As an example, if your spendings in one year is Rs.5 lakhs on items that earn only 2 reward points, your total Reward Points would add up to 10,000 i.e. Rs.2,500. This, plus 15,000 bonus Reward Points, will take your total benefit to Rs.6,250.

This, of course, is the minimum benefit.

As your spendings on items that earn 10 reward points increase, your total benefit will keep increasing. Thus you can earn up to 50,000 Reward Points worth Rs.12,500 per year.

Advantage 4: Cashback of 2.5% on Select Purchases
Your purchases at Grocery and Departmental stores are eligible for a 2.5% Cashback. That's not all!

Even your dining out at Restaurants and the International spendings are eligible for a Cashback of 2.5%. So, the SBI Elite Card is internationally friendly as well.

Advantage 5: Cashback of 0.5% on All Other Purchases
All other purchases on this card, will fetch you a cashback of 0.5%.

Thus, if your spendings reach Rs.5,00,000 per year, Advantages 4 and 5 will result in a cashback of anywhere between Rs.2,500 to Rs.12,500 per year, depending upon your spending pattern.

Advantage 6: Miscellaneous benefits
Additional benefits on SBI Elite Credit Card include among others:
- Enjoying Complimentary Domestic Lounge access, twice every quarter, at airport lounges in India
- Complimentary membership to the Priority Pass Program worth $99
- Renewal fee of Rs.5000 payable every year is reversed, if annual spendings exceed Rs.10 lakhs

Prima facie, Rs.5000 one-time joining fee and Rs.5000 annual renewal fees on the SBI Elite Card every year, may appear expensive.

However, your cash benefits are easily worth more than Rs.30,000 every year:
- Rs.5000 (e-Gift voucher for the 1st year only)
- Rs.6000 (bookmyshow tickets) 
- Rs.6,250-Rs.16,250 (bonus based on Rs.5 lakhs of your spending pattern)  
- Rs.2,500-Rs.12,500 (cashback based on Rs.5 lakhs of your spending pattern)

Hence, effectively speaking this card is absolutely free. Plus, depending on your spending pattern, you get lot more in the form of Cashback and Bonus Points.

In short, SBI Elite Credit Card is well worth a consideration.

Disclaimer: This post is in collaboration with SBI Cards.

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