Credit cards can unlock the world of luxury, be it hotels, homes and holidays, but that comes at a cost. So, how much would you be willing to pay as annual fees for a credit card? The most expensive one available in India demands ₹12.09 lakh as joining fees and ₹3.24 lakh thereafter every year on renewal. The card in question is Amex Centurion, an ultra premium credit card. But, it's one-of-a kind and no other card comes even close to its pricing. The next in line ultra premium cards carry a joining fee of ₹40,000 to ₹160,000 (besides goods and services tax, or GST, of 18%), which, in most cases, is to be paid each year along with the renewal fee.
At such high fees, what makes these cards attractive? Do the rewards exceed the fee? This story breaks down ultra premium credit cards for you to decade whether you need this plastic in your kitty.
What's on offer
Kashif Ansari, assistant professor at O.P. Jindal Global University, defines credit cards in this category as lifestyle cards. "The main benefits are not monetary and instead these offer privileges such as memberships of hotel and dining programmes and upgrades on them, besides concierge services and airport assistance," he said.
This can be seen in the relatively lower reward rates of 1.25-2.5% on some of the most rewarding super premium cards available currently-Axis Reserve, Yes Private and Amex Platinum Charge. The avenues for accelerated rewards on these cards are also limited. If one were to compare the reward rate of these ultra premium credit cards with HDFC Infinia, the highest rewarding card in a category that falls just below these cards, the shine may fade further for those who get credit cards primarily for reward rates. Infinia offers a base rate of 3.33% on hotels, flights and shopping on Tata brands and its annual fee is much lower at ₹14,750 (including GST). This fee is waived off after the cardholder spends ₹10 lakh a year.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Air fares in Sep quarter rise, Q3 may be worse
Multiple public holidays have sparked demand for short trips to domestic destinations, said Indiver Rastogi, president & group head of global business travel at Thomas Cook (India) and SOTC Travel. This year, Independence Day, Janmashtami, Onam, Eid and Ganesh Chat-
Yes, the world is hotter than it has been in 2,000 years or so
A scientific study of tree rings confirms global warming is for real
As a non-resident, is there a tax liability on exiting Indian MFs?
I have been investing in mutual funds for the past four years. Last year, I moved to Dubai and am currently a non-resident Indian NRD). Say, if] exit all my mutual fund investments now, would I have zero tax liability? —Name withheld on request.
Mergers off but PSB privatization still on
T 'he Centre doesn't have any plan to merge public sector banks (PSBS) in FY25, though it will not ditch plans to privatize PSBs during the fiscal, two people aware of the matter said.
Think Tesla Is In Trouble? Pity Even More Its Wannabe EV Rivals
The combined market value of six prominent wannabes hit 400bn in 2021, but today they are worth 65bn
Has The Growth Of Our Economy Translated Into Domestic Jobs?
While the covid shock and other setbacks got in the way, data indicates that employment in India is on a firm recovery path
Financial Sector Reforms Plan To Be Unveiled Post Elections
The govt will cut its stake in five PSBs this fiscal to comply with Sebi’s listing guidelines
Generative AI Is Not Ubiquitous In The Business World-Not Yet
While some AI tools racked up users, some firms are proceeding with caution, or not at all
Wipro’s CEO switch was not about its share price
Shareholder value data does not explain the firm's change on top. In a flux-filled field like infotech, business performance counts for more and Wipro's challenge still seems quite steep
How not to blow a major chunk of your travel budget on visas
Rejection of visas can impact your travel costs, especially when you have to cancel flight and hotel bookings