Comparing Credit Card Fees: SBI vs Axis Bank

Credit cards come with various fees and charges, making it essential to compare different banks before choosing the right one. SBI vs Axis Bank are two of the leading credit card providers in India, each offering a wide range of cards for different needs. But how do their fees compare? In this article, we will look at the key charges like joining fees, annual fees, interest rates, and other costs associated with SBI and Axis Bank credit cards.

SBI vs Axis Bank Credit Card Fees: Which One Costs Less?

When choosing a credit card, it’s important to consider not just the rewards and benefits but also the costs involved. Comparing Credit Card Fees: SBI vs Axis Bank helps in understanding which bank provides better value for money. Below, we break down the main charges for both banks.

Joining and Annual Fees

Both SBI and Axis Bank offer a variety of credit cards with different joining and annual fees.

• SBI Credit Cards: The fees for SBI cards vary based on the type of card. Some entry-level SBI cards come with a joining fee of ₹499 to ₹999, while premium cards may have a joining fee of ₹4,999 or more. Many SBI credit cards waive the annual fee if the yearly spending meets a specific threshold.
• Axis Bank Credit Cards: Axis Bank also has a similar fee structure. The joining fees for Axis Bank cards range from ₹250 for basic cards to ₹10,000 for premium ones. Like SBI, Axis Bank offers annual fee waivers on certain cards if spending conditions are met.

If you are looking for a credit card with low initial costs, SBI and Axis Bank both have suitable options. However, if you prefer premium benefits, Axis Bank’s top-tier cards come with higher fees compared to SBI.

Interest Rates on Credit Cards

Interest rates play a key role when selecting a credit card, especially if you carry a balance.

• SBI Credit Cards: SBI generally charges interest rates between 3.35% to 3.50% per month (40.2% to 42% annually) on unpaid balances. Some SBI credit cards may have lower interest rates for specific categories of customers.
• Axis Bank Credit Cards: Axis Bank credit cards have similar interest rates, ranging from 3.25% to 3.60% per month (39% to 43.2% annually). The interest rate depends on the type of credit card and the customer’s credit profile.

When Comparing Credit Card Fees: SBI vs Axis Bank, the interest rates are quite similar, but Axis Bank may charge slightly more on certain cards.

Cash Advance and Late Payment Fees

If you need urgent cash or forget to pay your bill on time, additional charges apply.

• SBI Credit Cards: SBI charges 2.5% of the withdrawn amount or a minimum of ₹500 as a cash advance fee. Late payment fees range from ₹400 to ₹1,300, depending on the outstanding balance.
• Axis Bank Credit Cards: Axis Bank also charges 2.5% of the withdrawn amount, with a minimum of ₹500 for cash advances. Late payment fees range from ₹300 to ₹1,200, based on the amount due.

Both banks have similar charges for cash withdrawals and late payments, so choosing between them depends on other factors.

Foreign Currency Markup Fees

If you frequently travel abroad, foreign currency markup fees are an important factor.

• SBI Credit Cards: Most SBI credit cards charge a 3.5% markup fee on foreign transactions. Some premium SBI cards offer lower rates, such as 1.99%.
• Axis Bank Credit Cards: Axis Bank generally charges a 3.5% markup fee on international spending, with certain premium cards offering a lower rate of 2%.

When Comparing Credit Card Fees: SBI vs Axis Bank for international use, both banks have similar charges, though some premium Axis Bank cards may provide slightly lower fees.

Rewards Redemption and Other Charges

Even reward redemption comes with certain costs, which are often overlooked.

• SBI Credit Cards: SBI charges ₹99 plus GST for redeeming reward points.
• Axis Bank Credit Cards: Axis Bank also charges a ₹99 plus GST redemption fee on rewards.

Additionally, both banks charge an over-limit fee of 2.5%, a duplicate statement fee, and a card replacement fee if needed.

Which Bank Offers Better Value?

Comparing Credit Card Fees: SBI vs Axis Bank shows that both banks have similar charges in most aspects, but a few differences can help in decision-making:

• For Budget-Friendly Cards: SBI and Axis Bank both have affordable credit card options with low joining and annual fees.
• For Premium Benefits: Axis Bank’s high-end credit cards have higher fees, but they offer additional perks like lower foreign currency markup and premium travel benefits.
• For Lower Interest Rates: SBI and Axis Bank have comparable interest rates, though some Axis Bank cards may charge slightly higher rates.
• For Frequent International Travelers: Some Axis Bank cards provide better foreign currency rates, but the difference is minimal compared to SBI.

Also Read:- The Importance Of Paying Your Credit Card Bill On Time

Final Thoughts

When Comparing Credit Card Fees: SBI vs Axis Bank, the choice depends on your spending habits and the type of benefits you prefer. If you want a low-cost card with fee waivers, both banks have good options. For premium benefits, Axis Bank’s top-tier cards come with slightly higher charges but also provide exclusive advantages. Before applying, it is always best to check the latest fees and features directly on the bank’s website to make an informed decision.