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

HDFC Millennia is a cashback credit card that offers CashPoints on every transaction made on multiple platforms such as Amazon, Flipkart, and more. Besides the benefit of online transactions, it also provides 1% cashback on all offline spending. With an annual fee of Rs. 1000, which can be waived off under a minimum spending basis, this card also treats its users with free lounge access, gift vouchers, etc.

Even when it is offering multi-faceted benefits to the users, HDFC Millennia can be unsuitable for some specific users. Let’s have a look at its review to see if it’s a suitable option for you or not.

HDFC Millennia Credit Card Cashback Structure

Cashback is the most advantageous and also the most important feature of this credit card. Here is a breakdown of its cashback structure:

Considering the annual fee of Rs. 1,000, the cashback structure of this HDFC credit card is pretty decent. Even EMI transactions are eligible for respective cashback. However, it does not cover fuel transactions under the cashback program which can be a drawback for individuals who load most of their fuel spendings on credit cards.

What may not be favourable for you?

The cashback program looks good. But, there are certain limitations associated with the redemption process that may seem a bit restricting. The major flaw is restraints on using the CashPoints to pay for the credit card bill. You must have at least 2,500 cash points to use this facility.

And, 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 Rs. 2,000. So, to redeem CashPoints against the 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.

Note: Cashback on every transaction is given in the form of CashPoints (1 CashPoint = Rs. 1). These CashPoints can be used to pay for the outstanding amount. Alternatively, points can be redeemed against the hotel, flight tickets or items in the reward catalogue. 

HDFC Millennia Credit Card Welcome Bonus

Once you have paid the membership fee, you will get 1000 CashPoints i.e. Rs.1,000 cashback. So, basically, your joining fee is reversed into your account. 

Besides this, you will also get a gift voucher worth Rs. 1,000 on spending a minimum of Rs. 1 lakh in a quarter (valid during the first year only).

And, for the first 6 months, you can earn up to Rs. 1,000 cashback per month on online shopping payments via Payzapp and Smartbuy.

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 the 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 spends 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 the 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 of 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 – 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 to get 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 the statement balance. If you want to avail their Cashpoints at the conversion rate of 1 CashPoint = Re. 1.

Comparative Analysis of Cashback Credit Cards

For better understanding and judgement, here is a comparative analysis of HDFC Millennia and other cashback credit cards.

*Terms and Conditions Apply.

Who should get This Credit Card

The card provides varied benefits across different categories. Still, spends in certain categories are rewarded with accelerated CashPoint earnings 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 cash back 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 spending is 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 fulfil 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 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.