Kotak 811 #DreamDifferent Credit Card Review

If you spend Rs. 5,000 within the first 45 days from the date of activation of the card, you get 500 bonus reward points. This, to be noted, is a decent deal because spending Rs. 5,000 within a span of 45 days is not a very big amount you should worry about spending off. If you opt for this card, you are most likely to use it and grab this benefit.

When it comes to rewards, the reward structure for this card is not very impressive and quite basic. For every Rs. 100 spent online, you get 2 reward points, and for all other spends just 1 reward point is credited per Rs. 100.

Apart from the bonus reward points on activation and reward points credit per Rs. 100, the card also offers milestone benefits on the spending of minimum Rs. 75,000 in an anniversary year. You can however choose the milestone benefit you wish to avail amongst two options. Though the milestone benefits are not that huge, yet the option to choose either a cashback or movie ticket is more or less a small advantage. 

• Option 1: Rs. 750 cashback that is reflected in the billing cycle
• Option 2: 4 PVR tickets issued via a Star Pass Code, that can be redeemed to book tickets online at www.pvrcinemas.com

Kotak 811 #DreamDifferent card provides an interest-free credit period of up to 48 days on cash advances. However, note that at the same time, a processing fee of Rs. 300 is charged per Rs. 10,000 withdrawn. Thus, the ‘interest-free cash withdrawal’ is not entirely ‘free’. Even the balance transfer transactions are charged with a processing fee of Rs. 349 per Rs. 10,000. 

The card offers a fuel surcharge waiver of 1% on transactions ranging between Rs. 500 and Rs. 3,000 and Railway surcharge waiver of 1.8% on irctc.com and 2.5% on booking counters of Indian Railways. However, note that though the percentage of surcharge waiver is quoted the same as most credit cards, yet the maximum benefit is capped at amount limits. The fuel surcharge is capped at a maximum of Rs. 3,500 per year while railways surcharge benefits are capped at a maximum of Rs. 500 per year.

Apart from the above-discussed features, some are listed below:

• Higher cash withdrawal limit of up to 90% of the credit limit.
• You get 811 #DreamDifferent Shield with a cover benefit of Rs. 50,000 against misuse of the card up to 7 days of pre-reporting of the fraud.
• You get the same benefits on an add on card and can also pre-set the card limit as you wish to and keep a track of it.

Read full details of the Kotak 811 #DreamDifferent credit card here.

Based on the above-mentioned reward structure and cashback benefits, the card claims a savings benefit of around Rs. 10,350 per year. This, however, is not that big an amount if you compare it with the amount spent, as mentioned in the table below:

* based on monthly withdrawal of Rs. 10,000 (Rs. 1,20,000 annually)

This card is a good option for you if you fit into any of the following scenarios: 

• You are new to credit cards and wish to understand how credit cards function. Since this card comes with no joining or annual fee, managing this card is hassle-free. 
• You want to build or improve your credit history. 
• You do not have a regular source of income but need credit. Since this card is offered against fixed deposits, anybody with an FD of Rs. 15,000 or above can opt for this card.
• The card is suitable for you if you are a housewife, senior citizen, or a student looking for a credit card provided you have an FD with Kotak Mahindra Bank.

In comparison to general features that other entry-level credit cards offer, Kotak 811 #DreamDifferent Credit Card has following limitations:

• Low reward rate
• Limited benefits on fuel and railway surcharge waiver
• No benefits on lifestyle categories
• High processing fee
• Limited benefits on milestone spends
• Since the card is issued against your fixed deposit, failure to manage the card bills could lead to loss of savings

Kotak 811 #DreamDifferent Credit Card is a very basic credit card ideally for people who rely on their savings and are not earning at all. However, in comparison to other secured credit cards or credit for beginners, the benefits that this card offers are very limited. Note, that the card justifies itself as an entry-level credit card in terms of the very basic benefits it offers, but not in terms of income eligibility as it can be opted by anyone with an FD. It does not fit into any credit card category of shopping, travel, fuel, or lifestyle. Before opting for this card, it is better that you explore other options wherein you avail of basic benefits yet can save more with a comparatively higher reward rate.