HDFC Bank Millennia Credit Card Review: Get Cashback on All Spends

Today, most of the credit cards are narrow in the range of offers and discounts that they bring to the customers. They, generally, are one sided which means they are good for a particular category say travel, cashback or entertainment. Cards that offer benefits across multiple categories usually charge a high annual fee or have strict eligibility terms. However, the millennials do not want to be limited; they want to get as many benefits as they can in a single card without having to pay a fortune for it.

To meet this very need, HDFC Bank has recently launched its Millennia Credit Card that provides bonus CashPoints on online shopping, lounge access, cashback on all spends and more, all at an annual fee of only Rs. 1,000. With multi-faceted benefits, it can be a good match for many. However, certain terms and conditions might make the card unsuitable for some. Read HDFC Millennia Credit Card Review in detail.

Welcome Benefits: Cashback and Gift Voucher

HDFC Millennial Credit Card makes up for its annual fee of Rs. 1,000 in the form of welcome benefit. However, it does not come directly in the form of vouchers; certain terms and conditions are applicable as given below:

• 1,000 Cash Points (Reward Points) on payment of the membership fee
• Rs. 1,000 gift voucher on spending at least Rs. 1.00 lakh in a quarter (Valid during the first year only)
• For first six months, earn up to Rs. 1,000 per month as cash back via PayZapp and SmartBuy (Maximum Monthly Cashback Limit will be Rs. 750 after 6 months)

Cashback Offer across Multiple Categories

The most advantageous feature of this card is the amount of cashback that it offers. The rate of earning cashback varies on the basis of spending category.

5% Cashback – Earn 5% cashback on a minimum transaction of Rs. 2,000 when shopping at Amazon, Flipkart. The maximum cashback in a month is capped at Rs. 750. Offer is also available on payments done via PayZapp and SmartBuy.

2.5% Cashback – Earn 2.5% cashback on all online spends, other than Amazon & Flipkart. Minimum transaction must be Rs. 2,000 and the maximum cashback per month is capped at Rs. 750.

Offline Spend – Earn 1% cashback on all offline spends except fuel transactions. Minimum transaction amount to avail this offer is Rs. 100.

The cashback offer on HDFC Millennia is quite good considering the fees associated with the card. You will be delighted to know that cashback is also given on EMI’s. The card misses out on offering cash back on fuel transactions. If it had offered cashback on fuel spends then the card would have become an all round choice for just about everyone.

Also, note that cashback is given in the form of CashPoints. These CashPoints can be used to pay for the outstanding amount. Alternatively, points can be redeemed against hotel, flight tickets or items in reward catalogue.

Redeeming Cash Points on HDFC Millennial Credit Card

As said above, HDFC Bank Millennia Credit Card does not offer direct cashback but in the form of Cash Points. These points work like rewards and have to be redeemed with one option being cashback. Since the rate of conversion for Cash Points and Cashback is 1:1, it is not wrong to call it direct cashback. Other details of redemption are listed below:

• CashPoints can be redeemed against statement balance, meaning you can pay your credit card bill via cash points. You will have to request for this service.
• 1 CashPoint = Re. 1
• To redeem CashPoints against statement balance, you will have to redeem at least 2,500 CashPoints. Also, cash Points will be redeemable in multiples of 500 only.
• CashPoints expire within 1 year if left unused.
• CashPoints can also be redeemed against flight, hotel bookings or items in Rewards Catalogue available at the SmartBuy Rewards Portal. Here, 1 CashPoint = Re. 0.30.

The rewards/cashback program on HDFC Millennia Card looks quite appealing from a distance. But, on closer inspection we find that certain conditions make it unappealing. The major flaw is the restrictions on using the CashPoints to pay for the credit card bill. You must have at least 2,500 cash points in order to use this facility.

Now, as we know the CashPoints expire in a year. Therefore, you will have to spend around 2.50 lakh in a year if all you do is offline shopping. If you shop online at Flipkart or Amazon, even then the maximum cashback you can earn is Rs. 750 per month. This will require you to spend at least Rs. 15,000 per month for three months. Furthermore, to earn CashPoints at Flipkart or Amazon, the minimum amount of transaction must be of Rs. 2,000. So, in order to redeem CashPoints against statement balance, you will have to have to shop between Rs. 50,000 and 2.5 lakh.

Still, HDFC Bank does allow you to redeem the reward points against flight & hotel bookings or items in the reward catalogue. However, now the conversion ratio becomes 1 CashPoint = Re. 0.30. This on top of the Rs. 99 redemption fee makes the card a poor choice for travellers and people who love to earn and redeem reward points.

All in all, the reward structure feels biased towards high spenders. Average customers might not enjoy the benefits that the card claims to offer.

Membership Fee Waiver

HDFC Bank usually keeps the fee waiver condition easy for its customers and this benefit has also been extended to the Millennia Credit Card. You do not have to pay the membership fee or annual fee if you meet the pre-set spending milestones.

Membership Fee Waiver: Customers must spend Rs. 30,000 in first 90 days of card issuance to get this waiver.

Renewal Fee Waiver: This waiver can be achieved after spending at least Rs. 1.00 lakh in a year.

Fee waiver spend milestone can be easily achieved by customers. The income eligibility for this card is Rs. 25,000 per month for salaried customers. For self-employed customers the eligibility is Rs. 6.00 lakh per annum. So, most customers who plan on using this card regularly will be able to get the waiver. And the annual charges won’t be an issue in getting this credit card.

Domestic Lounge Access

Cardholders are eligible for 8 free visits via Diners Club International, Visa, or MasterCard lounge program in a year. The lounge program is dependent on the payment network of your card. You can avail 2 free visits per quarter.

Complimentary lounge access adds good value to the credit card because there are only a few cards in the market that offer lounge access at a low annual fee.

Looking for a credit card that offers lounge Access? Click Here 

Drawbacks of HDFC Bank Millennia Credit Card

HDFC Bank Millennia Credit Card offers a lot of benefits but the following disadvantages keep it from becoming a truly great card.

Reward/Cashback Program – In order to truly utilize the cashback facility, you may have to spend quite a high amount. And, as you may already know, it does not make sense to ring up more bills on your card just for the sake of getting that cashback.

No Cashback on Fuel Spends – The card does not offer cashback on fuel transaction unlike some other cashback credit cards.

No International Lounge Access – The card should have provided at least 2 accesses to international lounges. This would have allowed occasional international travellers to enjoy the card as well.

Cap on Cashback – A maximum cashback of Rs. 750 can be availed under 5% 2.5% and 1% cashback offer each.

CashPoint Life – CashPoints will expire after 1 year from the year of accumulation. This is a major drawback as you would not be able to collect a lot of points to get a substantial cashback value.

CashPoint Utilization Limit – You will have to save at least 2,500 CashPoints before redeeming them against statement balance. If you want to avail their Cashpoints at the conversion rate of 1 CashPoint = Re. 1.

Who should get This Credit Card

The card provides varied benefits across different categories. Still, spends in certain categories are rewarded with accelerated CashPoint earning while others don’t. The card is best suited for you if you agree with the below given statements.

• You earn at least Rs. 25,000 per month or your ITR acknowledgement is at least Rs. 6.00 lakh (This is an eligibility criterion for this card)
• You occasionally travel within India
• You prefer getting cashback or the freedom to convert rewards into cashback over the usual redemption against vouchers or items from the catalogue
• You frequently shop online and most of your online spends are at Amazon or Flipkart
• You believe that you will be able to spend at least 1.00 lakh on the credit card

However, if you find that these features do not fulfill your major requirements then it will be best if you explore other credit cards.

Verdict

HDFC Bank Millennia tries to offer a variety of benefits and rewards majorly across cashback and travel categories. This is among the few cards in the market that offer lounge access and travel rewards for an annual fee of only Rs. 1,000. However, in the process of fitting both the categories, it fails to become a decent credit card in either of them. To use the card as it is meant to be used, you will have to pay a lot via the card. The real cashback benefit you could get is buried under layers and layers of terms and conditions, spend capping and expiration. You should get this card only if you are sure of spending big on it because only then you will be able to reap its real benefits.