Low annual fee credit cards are gaining popularity as they provide a cost-effective entry into the world of credit rewards. While not as elaborate as premium cards, these cards offer valuable perks, making them an attractive option for beginners. In this guide, we explore the top low annual fee credit cards from leading banks, considering the overall value-back they offer in terms of rewards, cashback, and discounts across various spending categories.
Understanding the Landscape of Low Annual Fee Credit Cards
Low annual fee credit cards serve as basic entry-level cards, presenting benefits across multiple spending categories. Despite not reaching the heights of premium cards, they remain a viable option for those seeking good value-back without a hefty annual fee. Rohit Chhibbar, Head of Credit Cards Business at Paisabazaar, emphasizes the importance of choosing a card aligned with spending habits to maximize value.
Top Picks for Low Annual Fee Credit Cards
Let’s explore some of the top low annual fee credit cards offered by leading banks, selected based on the overall value-back they provide:
- Axis Bank ACE Credit Card
- Annual Fee: Rs. 499
- Key Benefits: 5% cashback on utility bills, 4% cashback on Swiggy, Zomato, and Ola, unlimited 2% cashback on other spends, airport lounge access, and dining discounts.
- Flipkart Axis Bank Credit Card
- Annual Fee: Rs. 500
- Key Benefits: Flipkart voucher, cashback on Flipkart spends, cashback on preferred merchants, airport lounge access, and dining discounts.
- HDFC Bank Swiggy HDFC Bank Credit Card
- Annual Fee: Rs. 500
- Key Benefits: Swiggy One membership, cashback on Swiggy, Instamart, and Dineout, and cashback on online spends.
- Standard Chartered EaseMyTrip Credit Card
- Annual Fee: Rs. 350
- Key Benefits: Discounts on hotel and flight bookings via EaseMyTrip, reward points on retail purchases, and airport lounge access.
- IDFC FIRST Power+ Credit Card
- Annual Fee: Rs. 499
- Key Benefits: Cashback on HPCL spends, EMI conversion, discounts on Swiggy and ZoomCar, reward points on fuel and grocery spends, and airport lounge access.
- American Express SmartEarn™ Credit Card
- Annual Fee: Rs. 495
- Key Benefits: Cashback on initial spending, Membership Rewards® Points on various merchants, vouchers based on annual spends, and fuel transaction fee waiver.
- Yatra SBI Credit Card
- Annual Fee: Rs. 499
- Key Benefits: Yatra.com vouchers, reward points on specified categories, discounts on flight and hotel bookings at Yatra, and fuel surcharge waiver.
Choosing Wisely for Maximum Value
While annual fees are a consideration, Chhibbar advises against making it the sole deciding factor. Instead, users should focus on cards aligned with their spending patterns to extract the maximum value. Regularly updating information on the EPFO portal is also crucial for smooth transactions and withdrawals.
