The 10% offer seems very tempting but actually there is a catch. Axis Bank has imposed a maximum discount cap (of very small amount) per month on every category except Myntra.
The maximum discount cap is Rs. 50 per month on BookMyShow & RedBus and Rs. 30 for Freecharge.
The Neo credit card can be beneficial for you if you shop regularly on Myntra. Otherwise, you would get small benefits like if you are holding a free credit card.
Axis Bank Neo Credit Card Annual Fee
- Joining fee – Rs. 250 (waived off on spending Rs. 2500 in 45 days)
- Annual fee – Rs. 250
The Neo credit card comes with a number of welcome benefits
Amazon Gift Voucher
You will get an Amazon gift voucher worth Rs 250 on the first transaction done within 30 days of card issuance.
There is no requirement for a minimum spend. Any successful purchase transaction is eligible for the gift.
You will get a BookMyShow voucher worth Rs. 300.
You can use the voucher for movie ticket booking on both BookMyShow app and website.
Jabong Gift Voucher
You will also get a Jabong gift voucher of Rs. 500 which can be redeemed on the minimum spend of Rs. 2200 on Jabong.
Discount & Other Benefits
- 10% cashback on Freecharge up to Rs. 30 per month and can be availed on single a transaction.
- 10% discount at Myntra on spends of Rs. 500.
- 10% off on BookMyShow up to Rs. 50 per month.
- Get a 10% discount up to Rs. 50 per month on RedBus.
- You would also get 1 eDGE Loyalty Reward Points per Rs. 100 on all spends.
- 15% discount at Axis partnered restaurants across India.
The redemption value of 1 reward point is Rs 0.20. The reward ratio on regular spending is 0.2% – even lower than the basic level credit cards.
You will get reward points on all the spends including the “power of 10” category.
Axis Bank Credit Card Reward Redemption
You can redeem your accumulated reward points through Axis Edge Rewards Program in two ways
- Redeem for more than over 500 fashion, lifestyle, travel gadgets, homecare, and music products.
- Pay at Axis partnered outlets with reward points instead of cash.
You will need a minimum of 300 reward points for redemption.
What I Liked
- Multiple welcome benefits
- No discount cap on Myntra
What I Didn’t Like
- No milestone benefits
- Maximum discount cap with a small amount
- Poor reward ratio
Annual Saving Calculation
Using Neo credit card, you can get savings of up to 6.8% in a year, which is huge.
|Estimated expenses||Year 1||Year 2|
|Saving on Myntra (on spending 5000 per month)||6000||6000|
|BookMyShow (Rs 50*12)||600||600|
|Redbus (Rs 50*12)||600||600|
|FreeCharge (Rs 30*12)||360||360|
|Value of Reward points on Power of 10 (756 *0.2)||151||151|
|Other Spend of Rs 50,000 (500 reward points * 0.2)||100||100|
|Total Saving||Rs. 8861||Rs. 7811|
|Annual Fees charged||Rs. -250||Rs. -250|
|Net Saving||Rs. 8611||Rs. 7561|
The calculated saving is possible only if you spend on 10% discount categories. Otherwise, you would end up in negative savings after paying the annual fee.
If you want to save approximately 10% on your online spends, I would suggest you apply for Amex Membership rewards credit card.
Comparison Between Axis Neo & Amex Membership Rewards
|Credit Card||Axis Bank Neo||Amex Members Reward|
|Bonus Benefit||10% discount||10% benefit* earned by transferring money into the wallet|
|Reward Points||1 Point per Rs. 100||2 Points per Rs. 100|
|Welcome Gift first year||Rs. 1050||4000 points|
|Welcome Gift Renewal||0||5000 Points|
|Annual Fee first year||Rs. 250||Rs. 1000|
|Annual Fee second year||Rs. 250||Rs. 4500|
|Waiver||N/A||On spending Rs 1.5 Lakh|
|Best For||Only Myntra shopping||Online spends|
*Amex Membership credit card gives 1,000 reward points worth Rs. 400 on 4 transactions (transferring money into a wallet) of Rs. 1,000 each every month which is equal to 10%.
You need to apply online and wait for a call from Axis Bank representative for further process.
To be eligible for the card, you need to be
- Individual, aged 18 to 70 years
- Should either be a Resident Indian or NRI
Frankly speaking, I haven’t found a single reason to have Axis Bank Neo credit card. Rather, I suggest you apply for Amex Membership Reward credit card which gives more reward value without any specific category.
If you want to read about other credit cards, then you can read here Best Credit Cards in India.