PhonePe SBI Select Black vs. Cashback SBI Card: Which is India’s Best Cashback Credit Card?

Since PhonePe partnered with SBI to launch the new PhonePe SBI Select Black Credit Card, the Cashback SBI Card has been facing stiff competition. Many are wondering if its reign as the “best cashback credit card” is over. This article provides a side-by-side comparison to help you decide which credit card is right for you.

The Reigning Champion: Cashback SBI Card

For a long time, if you asked anyone about the best cashback credit card in India, the answer was almost invariably the Cashback SBI Card. This credit card offers a straightforward 5% cashback on all online e-commerce merchant spends, with no merchant restrictions (excluding specific categories). Whether you shop on Amazon, Flipkart, Nykaa, or any other e-commerce platform, you receive this generous 5% cashback. You can earn up to ₹5,000 in cashback every month, which is directly settled in your statement. For all other remaining categories, both online and offline, the card provides a 1% cashback. In total, cardholders can save up to ₹5,000 monthly across both the 5% and 1% cashback categories.

However, the Cashback SBI Card does not offer any welcome benefits. When paying its joining fee of ₹999 plus taxes, you technically don’t receive anything in return. Furthermore, this card provides no cashback on utility bill payments or insurance. It also lacks UPI functionality as it is not available on the RuPay network. Historically, it offered airport lounge access, but this benefit has since been removed. The fuel surcharge waiver on this card is capped at ₹100 per month. To waive the annual fee, you need to spend ₹2 lakh in the previous year. This card is considered sophisticated, offering cashback primarily in two categories: online e-commerce and general offline spends.

The New Challenger: PhonePe SBI Select Black Credit Card

The PhonePe SBI Select Black Credit Card emerges as a strong contender, boasting several benefits that address the gaps in its rival. Unlike the Cashback SBI Card, it comes with attractive welcome benefits. Upon approval, you receive a PhonePe e-gift voucher worth ₹1,500, which can be used for utility bill payments, recharges, or other payments. This welcome benefit effectively offsets your joining fee, making the card more appealing from the start.

Applying for this card previously involved the SBI website, but it’s now exclusively available via invitation on the PhonePe app. To apply, you would need to start using the PhonePe app to potentially receive an invite.

Cashback and Reward Benefits: The PhonePe SBI Select Black Credit Card offers a substantial 10% cashback in the form of reward points (10 reward points for every ₹100 spent, with each point valued at ₹1) on PhonePe spends or transactions made through PhonePe’s Pin Code app. This 10% cashback extends to categories like mobile recharges, bill payments, utility bill payments, and even insurance. Cardholders can earn up to 2,000 reward points monthly in this 10% category, equivalent to ₹2,000 cashback on ₹20,000 worth of spends. These reward points can be directly adjusted in your statement or redeemed for gift vouchers on the SBI platform.

For online e-commerce merchant spends, this card provides a 5% cashback, similar to the Cashback SBI Card. However, the monthly cap for this category is ₹2,000, meaning you receive 5% cashback on spends up to ₹40,000. For other remaining spends not covered by PhonePe-specific categories, it offers 1% cashback, with a monthly cap of ₹2,000. Crucially, as a RuPay network card, it supports UPI transactions and offers 1% cashback on UPI spends, capped at ₹2,000 per month – a feature absent from the Cashback SBI Card.

Additional Benefits: The PhonePe SBI Select Black Credit Card also includes milestone benefits. Spending ₹5 lakh in a year earns you a Yatra gift voucher worth ₹5,000. For travelers, it offers four complimentary domestic airport lounge accesses per year without any spend criteria, and an additional two-year Priority Pass membership for international airport lounge access – benefits not available on the Cashback SBI Card. The fuel surcharge waiver is more generous, allowing savings of up to ₹250 per month.

The joining fee for the PhonePe SBI Select Black Credit Card is ₹1,499 plus GST, with the same amount for the annual fee. To waive the annual fee, you need to spend ₹3 lakh in the previous year. While the fee is slightly higher than the Cashback SBI Card, the ₹1,500 welcome benefit covers the joining fee, making it more cost-effective upfront.

Side-by-Side Comparison: PhonePe SBI Select Black vs. Cashback SBI Card

Let’s break down the key differences:

• Welcome Benefits: The PhonePe SBI Select Black Credit Card offers a ₹1,500 PhonePe e-gift voucher, directly offsetting its joining fee. The Cashback SBI Card provides no welcome benefits.
• Cashback on Utility Bills & Insurance: The PhonePe SBI Select Black Credit Card provides an impressive 10% cashback on utility bill payments and insurance through PhonePe. In contrast, the Cashback SBI Card offers no cashback in these essential categories.
• UPI Cashback: A significant advantage for the PhonePe SBI Select Black Credit Card is its 1% cashback on UPI spends, capped at ₹2,000 per month, thanks to its RuPay network. The Cashback SBI Card does not support UPI.
• Online E-commerce Cashback: Both cards offer 5% cashback on online e-commerce. However, the Cashback SBI Card has a higher monthly cap of ₹5,000 (on ₹1 lakh spends) compared to the PhonePe SBI Select Black’s ₹2,000 (on ₹40,000 spends). For an average spender, the PhonePe card’s cap is often sufficient.
• Milestone Benefits: The PhonePe SBI Select Black Credit Card rewards high spenders with a ₹5,000 Yatra gift voucher for ₹5 lakh annual spends. The Cashback SBI Card offers no such milestone benefits.
• Airport Lounge Access: The PhonePe SBI Select Black Credit Card includes four domestic airport lounge accesses and a two-year Priority Pass membership. The Cashback SBI Card no longer offers lounge access.
• Fuel Surcharge Waiver: The PhonePe SBI Select Black Credit Card provides a waiver of up to ₹250 per month, which is higher than the Cashback SBI Card’s ₹100 monthly waiver.
• Fees: While the PhonePe SBI Select Black Card has a higher fee of ₹1,499 + GST (vs. ₹999 + GST for Cashback SBI Card), its welcome benefit makes it more valuable, effectively negating the initial cost.

The PhonePe SBI Select Black Credit Card stands out as a more versatile option. It caters to a wider range of spending categories, making it a single card solution for many of your needs. The Cashback SBI Card, while excellent for focused online e-commerce spending, is more limited in its cashback categories.

Which Credit Card Should You Choose?

Both credit cards are excellent in their own right, but your choice should align with your spending habits and preferences.

The Cashback SBI Card remains a solid choice if your primary spending is on online e-commerce platforms and you don’t require benefits on utility bills, insurance, or UPI. It’s a straightforward card for specific needs.

However, if you’re looking for a single, comprehensive credit card that offers savings across a multitude of categories, the PhonePe SBI Select Black Credit Card is the superior option. Its 10% cashback on PhonePe spends (including utilities and insurance), 1% cashback on UPI, milestone benefits, and lounge access make it a highly versatile and rewarding card for everyday use. Its welcome benefit also provides an immediate return on your joining fee.

While the Cashback SBI Card is a very good card, the PhonePe SBI Select Black Credit Card truly shines with its broader range of benefits and value proposition for a typical consumer. If you have the option, the PhonePe SBI Select Black Credit Card is the recommended choice. If it’s not available to you, the Cashback SBI Card is still a fantastic alternative.

Ultimately, you are well-equipped to understand the differences and choose the credit card that best fits your financial requirements.