Synopsis- PhonePe SBI SELECT BLACK offers unmatched value on utilities and insurance via the PhonePe app, plus travel perks. SBI Cashback excels for effortless rewards on top e-commerce sites. Using both cards strategically helps you save more across essential bills and online shopping.
Introduction
Most credit cards, like SBI Cashback, exclude rewards on insurance and utility bills. Enter PhonePe SBI SELECT BLACK—a new co-branded card offering 10% reward points on such spends via the PhonePe app. This article compares both cards to help you maximize value on essential and online expenses.
Quick Comparison
PhonePe SBI Card SELECT BLACK
- 10% reward points on PhonePe app spends (utilities, insurance, recharges, Pincode, etc.)
- 5% on 1,000+ online merchants
- 1% on all other eligible spends
- Monthly caps: 2,000 (10% tier), 2,000 (5%), 500 (1%)
- Annual fee: ₹1,499
- Waived with high annual spend
- ₹1,500 welcome voucher offsets the fee
- Lifetime free variants available (as of Aug 2025)
SBI Cashback Card
- 5% direct cashback on select online merchants (Flipkart, Amazon, Myntra, etc.)
- 1% cashback on offline spends
- No cashback on insurance, utility bills, fuel, rent, wallet loads
- Zero annual fee
- Cashback is credited directly to the statement—no redemption needed
The Game-Changer
1. SBI Cashback Card: No Rewards on Essentials
- Provides zero cashback on utility bills, insurance premiums, rent, fuel, and wallet loads.
- Even high-value payments like ₹10,000 LIC premiums or ₹4,000 electricity bills earn nothing in return.
2. PhonePe SBI SELECT BLACK: 10% on PhonePe Payments
- Offers 10% reward points on utility and insurance payments made via the PhonePe app.
- Example:
- Pay ₹5,000 insurance premium → Earn 2,000 reward points (~₹500 value).
- Same spend via SBI Cashback → ₹0 cashback.
Verdict: Clear Advantage for High-Value Bills
- If you frequently pay LIC, Tata AIA, or BESCOM bills, SELECT BLACK helps you save on unavoidable expenses.
- The key: you must use the PhonePe app for the 10% reward rate.
Also read: Best 5 Student Credit Cards in India with ₹0 Annual Fee – Features & Benefits Explained
Points vs. Cashback: What’s Better?
- SBI Cashback Card
- 5% cashback is direct and auto-applied to your statement.
- No conversions or redemption steps are required.
- However, many key spends (like insurance, utilities) are excluded.
- PhonePe SELECT BLACK
- Rewards come as points (~₹0.25 per point), leading to ~2.5% effective return on PhonePe spends.
- Points can be redeemed for vouchers, travel bookings, bill payments, or statement credit.
- Active redemption needed—less effortless than Cashback.
- 10% rate applies only to PhonePe app; elsewhere, utility/insurance earns just 1%.
- Monthly caps may restrict benefits for high spenders.
Extra Benefits & Fees
- PhonePe SBI SELECT BLACK: Lifestyle & Travel Perks
- ₹5,000 travel voucher on ₹5 lakh annual spend
- 4 free domestic airport lounge visits each year
- 2-year Priority Pass membership for international lounge access
- 1% fuel surcharge waiver (on ₹500–₹4,000 transactions)
- ₹1,499 annual fee, offset by:
- ₹1,500 welcome voucher
- Spend-based renewal waiver
- Ideal for frequent travellers and digital-first users
- SBI Cashback Card: Simpler, No-Frills Option
- Zero annual fee
- No lounge access, travel vouchers, or lifestyle perks
- Best for users who want straightforward cashback without extras
Final Verdict
Use PhonePe SBI SELECT BLACK for utility and insurance payment via the PhonePe app if you enjoy travel perks and do not mind redeeming points. For the best cashback for online shopping on Flipkart or Amazon, use SBI Cashback. Use both cards to maximize rewards on all essential and lifestyle spends.
Written by N G Sai Rohith
The post Is SBI Co-Branded Credit Card Better Than the Bank’s Own Credit Card? Here’s the Answer appeared first on Trade Brains.