Why bank card customers wish to seize maintain of Axis Magnus

Yadav was blissfully unaware that such a bank card exists. The plastic being referred to is Axis Magnus, which is all the craze proper now on the earth of bank cards. Axis Magnus rewards its customers on all spends. This contains bills like insurance coverage and lease and all varieties of discretionary spends. One may even pay for groceries and the utility payments through the use of Amazon vouchers purchased with this bank card. Yadav stated he has been routing all his mounted month-to-month bills to Axis Magnus in ever since he signed up for it about two months in the past.

The Axis Magnus bank card from Axis Bank boasts of a excessive incomes in addition to redemption price. It gives 12 EDGE Rewards (ER) on each ₹200 spent. Axis financial institution values 1 ER at 20 paise, which makes the bottom reward price 1.2%. The financial institution’s accelerated rewards programme might help one gather important variety of reward factors in a short while. “What makes Axis Magnus actually stand out is the 5X-10X accelerated rewards it gives,” said Kashif Ansari, assistant professor, Jindal School of banking and finance, O P Jindal Global University.

For instance, you will earn 5X of the base reward rate if you were to book a flight through Axis Travel Edge portal. This means you get rewards five times more than what you would have earned by booking the same flight through the airline’s website using Axis Magnus card (see graphic). Axis offers similar accelerated rewards on vouchers and gift cards of e-commerce websites (Amazon, Flipkart, Big Basket, Myntra etc) and retail stores (Croma, Ajio) and gift vouchers (see graphic) on Grab Deals and Gift Edge portals.

“Grab Deals is an affiliate platform for shopping and Gift Edge is for purchasing gift vouchers,” stated Ankush Setia, co-founder, Multiply.

As for redemption price, you’ll be able to snag at the very least 4.8% on motels and flights, which is sort of excessive going by what different comparable playing cards supply. But for those who convert rewards into Amazon/Flipkart vouchers, the worth is just 20 paise per level, which works out right into a redemption price of just one.2% (see graphic). “It is secure to name Magnus a journey card because it gives one of the best offers on flights and motels,” stated Ansari.

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The most engaging function for Axis Magnus homeowners is the 25,000 milestone ER that’s paid out when one spends ₹1 lakh in a month. This was launched final yr. As per Axis’ redemption worth, 25,000 ER is the same as ₹5,000 in money, however when used for sure flights or motels, the worth may even be ₹10,000-20,000.

Currently, Axis Bank has the very best variety of partnerships with airways and motels, which supplies the cardholder ample choices to select from for using their reward factors. Axis gives the very best conversion price whereby 5 ER equals 4 airmiles/resort factors.

Other advantages embrace as much as 40% low cost on eating out, ₹500 low cost on shopping for a second film ticket, limitless lounge entry in worldwide and choose home airports with as much as 8 free entries for pals and households in worldwide airports and eight free meet and greet service at airports.

Too good to be true?

When a financial institution gives distinctive advantages on a credit score product, one is compelled to assume if there’s a catch. Industry consultants say there actually isn’t one, at the very least on this case.

“I consider the financial institution’s technique of providing excessive rewards is to convey folks into the Axis fold as it’s a late entrant to the premium bank card house,” said Ajay Awtaney, founder, LiveFromALounge.com (LFAL). “Axis offers rewards on almost all spends. Moreover, by offering a monthly 25,000 milestone ER on a certain amount, the bank has gamified the reward system in a way that it wants the users to not just own the card but use it as well. Axis Bank wants Magnus to be the default card that people use for all their requirements.”

However, the reward system is structured in a approach that makes Axis Magnus a card for prime spenders. This can be seen within the financial institution’s eligibility standards which points Magnus to these with a minimal annual revenue of ₹18 lakh. To get it on a card-to-card foundation, the client ought to personal a card with ₹5 lakh credit score restrict. This card additionally requires an annual payment of ₹11,800 (together with GST), which is just waived off when one spends over ₹15 lakh yearly. Do observe that this ₹15 lakh restrict excludes huge bills like lease and EMIs, or equated month-to-month instalments, and in addition doesn’t depend pockets transactions.

High reward playing cards additionally usually have a restricted life cycle as these are costly propositions for banks. “When a financial institution takes such a punt, they modify the advantages very quick. In the case of Axis Magnus, some lounge tie-ups have been discontinued and lately the financial institution decreased the utmost rewards on vouchers purchased by means of Grab Deals,” said Kaamil Nakhasi, a banking professional with experience in the credit card department. “All premium credit cards have a life cycle wherein after an initial few years, banks start devaluating the benefits. HDFC Diners card is a case in point.”

Does this imply lofty rewards on axis Magnus are short-lived? Not but, say consultants. “Until final yr or so, Axis was targeted on making its playing cards recognized. Now, it’s hunting down dangerous actors and fixing leaking buckets with profitability in thoughts. Even then, I don’t assume the advantages would go away over the subsequent two years at the very least,” stated Awtaney.

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Updated: 07 Jul 2023, 09:56 AM IST