HDFC Millennia Credit Card offers 5% cashback on specified merchants: Should you go for it? | Mint

In the last few years, the cashback category has gained a lot of popularity among customers. Taking note of this trend, banks have launched cashback-specific credit cards. The HDFC Bank Millennia Credit Card is one such cashback card. What are the features and benefits of this card, the fees and eligibility criteria, and should you take this credit card? Let us discuss.

Features and benefits of HDFC Bank Millenia Credit Card

The HDFC Bank Millenia Credit Card is an entry-level credit card. But, at the same time, it is packed with powerful features and benefits. Some of these include the following.

5% cashback on specific merchants

The HDFC Bank Millennia Credit Card offers 5% cashback on specified merchants. These include Amazon, BookMyShow, Cult.fit, Flipkart, Myntra, Sony LIV, Tata CLIQ, Uber and Zomato. The cashback can be earned only on non-EMI spends. The transactions involving gift / prepaid card loads and voucher purchases will be considered in the other spends category as explained below. The maximum cashback that can be earned in a statement cycle is Rs. 1000.

1% cashback on other spends

All other spends on other merchants (except for excluded categories) will earn 1% cashback. The maximum cashback that can be earned in a statement cycle is Rs. 1,000.

Milestone benefit

The cardholder will be eligible for the milestone benefit if they achieve a net spend (after reversals, if any) of Rs. 1 lakh in a calendar quarter. The milestone benefit is in the form of a Rs. 1,000 gift voucher code. The code can be redeemed against a gift voucher of brands like Amazon Pay, BigBasket, BookMyShow, Pizza Hut, PVR, Uber, etc. A calendar quarter will be as follows: 1st January to 31st March, 1st April to 30th June, 1st July to 30th September, and 1st October to 31st December.

The cardholder can check the spends achieved in a calendar quarter through net banking. Post completion of achieving the spend target, the voucher code will be sent to the cardholder’s registered mobile number and email ID within 30 days. Once the voucher code is sent to the cardholder, they must redeem it within 60 days.

Dining discounts

The cardholder can avail of a discount of up to 20% on partner restaurants via Swiggy Dineout.

Fuel surcharge waiver

The fuel surcharge of up to 1% will be waived on fuel transactions between Rs. 400 and Rs. 5,000. The maximum waiver is Rs. 250 in a statement cycle.

Cashback in the form of cashpoints

The card offers cashpoints in the customer’s credit card account under the reward points scheme. The cashpoints are posted on a calendar month basis. So, cashpoints earned between the 1st to the 30th/31st will be posted in the 1st week of the subsequent calendar month.

The cashpoints can be redeemed as cashback against the statement balance. The value of each cashpoint is equivalent to Rs. 1 cashback. The cashback redemption can be done via net banking, phone banking, or physical redemption form, and will carry a Rs. 50 redemption fee. The minimum cashpoints requirement for cashback redemption is 500. A maximum of 3,000 cashpoints can be redeemed for cashback in a calendar month.

The cashpoints can also be redeemed for booking flight tickets, hotel accommodation, and the reward catalogue at the SmartBuy rewards portal. The value of each cashpoint for these redemptions is Rs. 0.30.

The cashpoints have a validity of two years. They will lapse/expire if not redeemed during the validity period.

Exclusions for earning cashback

Wallet loading, fuel spends, rent payments, Government-related transactions, and EMI transactions are excluded from earning any cashpoints. Education-related payments made through third-party apps will not earn any cashpoints. However, education-related payments made directly through the college/school websites or their POS machines will continue to earn cashpoints.

Also Read : Hulu prematurely ended its Oscars stream right before the final awards

Fees on specified transactions

1. Rental transactions will be charged a 1% fee on the transaction amount. The fee will be capped at Rs. 3,000 per transaction.
2. Fuel spends of more than Rs. 15,000 per transaction will be charged a 1% fee on the entire transaction amount. The fee will be capped at Rs. 3,000 per transaction.
3. Utility bill payments of more than Rs. 50,000 per transaction will be charged a 1% fee on the entire transaction amount. The fee will be capped at Rs. 3,000 per transaction. Insurance transactions will not be considered as utility transactions, and will not attract the 1% fee.
4. Education-related payments done through third-party apps like CRED, Paytm, and others will be charged a 1% fee. The fee will be capped at Rs. 3,000 per transaction.

Fees and eligibility

The joining fee for the HDFC Bank Millennia Credit Card is Rs. 1,000 + Taxes. On payment of the joining fee, you will get 1,000 cashpoints. The annual renewal fee is Rs. 1,000 + Taxes. The annual renewal fee for the next year is waived on spending Rs. 1 lakh or more in the previous year.

To apply for this card, the individual should be an Indian national and age must be between 21 and 40 years. The net monthly salary income must be more than Rs. 35,000. Self-employed individuals must have an ITR of more than Rs. 6 lakhs per annum.

Should you take this credit card?

The HDFC Bank Millennia Credit Card has many good features and benefits. It offers 5% cashback on specified merchants spread across categories like entertainment, food, fashion, travel, and marketplaces like Amazon and Flipkart that cover most expenses. The Rs. 1,000 milestone benefit for spending Rs. 1 lakh in a calendar quarter is doable for most people and adds to the benefits. The income eligibility is within reach for most people, and the annual fee is low. The annual fee can be waived on spending Rs. 1 lakh which is manageable for most people. The cashback, flight booking, hotel accommodation, gift vouchers, etc., offer a decent variety of redemption options.

The card covers most things that any cardholder would expect, like a decent reward rate, multiple redemption options, easily achievable milestone benefits, lower annual fees, etc. Thus, if you are looking for a decent entry-level cashback credit card, you can consider the HDFC Bank Millenia Credit Card.

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