It
was almost three decades back that the Indian economy started opening up. This
not only gave a boost to the nation’s balance of payments, but also opened a
whole new world of conscious consumption on the part of the Indian consumer.
The Indian consumer became more and more willing and able to realise her dreams
at a very young age, instead of saving money her whole life. The related
development that aided this change in spending patterns was the easy availability
of loans and credit.
Loans
involved a lot of paperwork and in many cases (home loans, business loans, car
loans) required a collateral (in property or cash), and therefore credit cards
became a much more convenient option. Based on the depth of the relationship
with a particular bank and the repayment capacity, several banks started
issuing credit cards with minimal paperwork and quick processing. Almost all
credit cards allowed the user a period of a month or more to utilise interest
free credit on the amount spent. The borrower only had to pay an annual charge
for the credit card. Gradually, banks started competing on the reduction of
annual charges, to attract more and more users. We now have several credit
cards which do not charge any annual fees but provide a plethora of attractive
features. Here is a list of the best cards with zero annual fees.
1.
IndusInd Bank Pinnacle Card – You do not pay any annual fees at entry for this
card, nor do you pay anything for renewal of the card every year. The bank has
specified a one time joining fee of Rs. 1 lakh, though, which might seem a bit
steep initially but becomes affordable if you use the card for an extended
period over several years. You get 2.5 spend points for every rupee spent for
online purchases using this card.
2.
ICICI Bank HPCL Coral Card – The zero annual fee has a few riders here. The
first year’s annual fee is actually zero, and the second year would also be
free if you can use the card for spends of at least Rs. 50000 during the first
year. People who spend a lot of money on fuel will find this HPCL co-branded
card very attractive because the fuel charge is completely waived. Additionally
there are several other attractions on reward points, movie ticket purchases
etc.
3.
Citibank Rewards Domestic Card – This is one of the most popular cards from the
Citi stable, and a high flying user will find several benefits on logging in frequent
flier miles, fine dining and purchase of premium products. The waiver of annual
fees of Rs. 1000 is applicable only if you can spend at least Rs. 30000 in the
year.
4.
HSBC Platinum Card – You are charged neither any joining fee nor any
annual fee when you sign up for this attractive offering from HSBC Bank. What’s
more, the amount spent in the first 90 days of usage gives you a whopping 10%
cashback subject to a minimum spend of Rs. 10000. But for cash back after that,
you need to have 3 separate transactions of any amount every month.
5.
SBI Simply Save Card – The annual fee waiver on this card has some fine
print. The fee of Rs. 499 would be charged initially, but would get reversed if
you can spend up to Rs. 90000 in the year using this card. The reward points
structure of this card is designed to encourage point of purchase usage
(restaurants, malls, grocery shops etc.) more than online purchases, so you
need to keep that in mind.
These five credit cards can be used for
good rewards and also without the burde
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