PhonePe SBI Card SELECT BLACK: Reward rates, fees, and benefits explained

In the last few years, some banks have excluded utility bill payments from earning rewards from their credit card programs. Some banks have even started charging a convenience fee if the amount spent on utility bill payments exceeds a specified amount in a billing cycle.

However, utility bills are something that every household needs to pay every month. In such a scenario, what if you could get a credit card with a 10% reward rate on utility bill payments? Yes, the PhonePe SBI Card SELECT BLACK provides a 10% reward rate on utility bills, insurance, travel, and much more.

So, let us look at the features and benefits of this card and whether you should take it.

Rewards structure: The PhonePe SBI Card SELECT BLACK provides an accelerated reward rate of 10 reward points for every Rs. 100 spent on eligible PhonePe and PINCODE spends. These spends include recharges, utilities, bill payments, insurance, flights, hotels, and PINCODE. There is a capping of a maximum of 2,000 reward points in a month.

The cardholder will get 5 reward points for every Rs. 100 spent on online spends. There is a capping of a maximum of 2,000 reward points in a month.

The cardholder will get 1 reward point for every Rs. 100 spent on all other eligible spends. All Scan & Pay transactions done using the PhonePe SBI Card SELECT BLACK on any UPI App will earn 1 reward point/Rs. 100 spent. There is a capping of a maximum of 2,000 reward points in a month.

The utilities and insurance spends outside PhonePe will earn the base reward rate of 1 reward point/Rs. 100 spent, subject to a maximum of 500 reward points/month.

Exclusions: The spends on the following categories will not earn any reward points:

1. Fuel purchases
2. E-wallet loading
3. Rent and property management payments
4. School & educational services
5. Government spends
6. Digital gaming platforms
7. Any financial charges levied on the card
8. ATM withdrawals
9. Merchant EMI transactions

Milestone benefits: The cardholder will get a Rs. 5,000 Yatra Gift Voucher on completing spends of Rs. 5 lakhs in a year. The voucher can be used for booking flights, hotels, and holidays on the Yatra website/App and is valid for a single transaction only.

The voucher code will be sent to the cardholder on their registered mobile number/email ID within 30 days of achieving the Rs. 5 lakhs annual spend milestone.

Lounge access: The cardholder can enjoy complimentary airport lounge access. The cardholder is eligible for 4 complimentary domestic airport lounge visits every year (maximum 1 per quarter).

The cardholder will get a Priority Pass complimentary membership worth $99 for the first two years of card membership.

Fuel surcharge waiver: The card provides 1% fuel surcharge waiver at all petrol pumps across India. The waiver applies to fuel transactions between Rs. 500 and Rs. 4,000. The maximum waiver that can be earned in a statement cycle is Rs. 250.

Reward redemption: The value of each reward point is Rs. 1. The reward points can be redeemed against cash or gift vouchers. The cardholder can redeem the reward points as a statement credit. Accordingly, the credit card outstanding balance will be reduced by the number of reward points redeemed.

The cardholder can redeem reward points against gift vouchers on the SBI Card Rewards portal. The reward points are valid for 2 years from the date of receipt.

Fees: The joining fee on the card is Rs. 1,499 + taxes. The cardholder gets a welcome benefit of a Rs. 1,500 PhonePe Gift Card. The voucher will be shared with the cardholder on their registered mobile number/email ID within 45 days of joining fee payment. On adding the voucher to the gift card balance on the PhonePe App, it will be valid for 12 months.

The annual renewal fee on the card is Rs. 1,499 + taxes. The annual fee is reversed on spending of Rs. 3 lakhs or more in the previous membership year.

How to apply?

An individual can apply for the PhonePe SBI Card SELECT BLACK through the PhonePe App. After entering the details on the PhonePe App, the applicant must complete the KYC with SBI Card.

How to maximise the benefits from this card?

Let us take an example to understand how to maximise the benefits of this card. Suppose a cardholder spends Rs. 75,000 monthly on various categories as follows.

The above table shows how, by spending Rs. 75,000 per month (Rs. 9 lakhs annually) with the card, the cardholder can earn 49,800 reward points annually. The reward points are worth Rs. 49,800. As the cardholder is spending more than Rs. 5 lakhs in a year, they will get a Rs. 5,000 Yatra gift voucher. The cardholder’s annual renewal fee of Rs. 1,499 + taxes for next year will also be waived as the annual spends exceed Rs. 3 lakhs.

Should you take this card?

Utility bill payments are something that every household has to pay every month. A 10% value back on these bill payments is a big bonus. You can also enjoy a 10% value back on travel spends such as booking flight tickets and hotel rooms.

Apart from these, the PhonePe SBI Card SELECT BLACK provides 5% value back on all eligible online spends and 1% value back on UPI and other spends. Thus, if you transact regularly on the PhonePe App and spend online regularly, you may consider the PhonePe SBI Card SELECT BLACK. It is a good credit card with 10% value back on specified spends on PhonePe and 5% value back on online spends.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.

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