Should you really open a HDFC Savings Acc only for 1% cb on CC Bills?

[Sourabh_13]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

 

[D₹V]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

Maybe this thread can help you know millennia DC benefits better 😜

HDFC Bank Millennia Debit Card & It's Benefits ❤️🔥

Charges: 500 + GST. Benefits: • 5% cashback on PayZapp or Smartbuy • 2.5% cashback on shopping i.e. on Flipkart, Amazon etc • 1% on other transactions i.e. wallet loads, credit card payments etc • Total rewards is capped at 400 RP/month • Bonus - 5% cashback upto 1000 on Gift Vouchers...

www.technofino.in

 

[SSV]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

As far as recovering the costs associated with 1% CB back, your calculations are largely in the right direction to achieve the breakeven…
Very good analysis..
Opening the Savings Max account is definitely a better option..
Apart from the above:
1) Based on your profile and banking activity you will get pre approved CC and loan offers
2) Generic Savings Max account benefits listed in the link attached
3) Lounge Access on Plat DC subject to 5k spending
4)PayZap and smart buy CB
For details refer to Savings max product and plat dc product pages attached here..

Savings Max Account - Open Savings Max Account for Max Savings with HDFC Bank

HDFC Bank Offers Savings Max Account with Max Savings and high interest rate that helps you save more money. Apply Online to open your savings max account at HDFC Bank.

www.hdfcbank.com

EasyShop Platinum Debit Card - Ultimate Cash Back Card on Shopping | HDFC Bank

EasyShop Platinum Debit card entitles you to a higher limit on your daily spends along with exclusive cash back offers on retail & online shopping. Apply Now & Shop Easy!

www.hdfcbank.com

 

[sxchzy]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

you are not missing anything
but if any family member has a salary account open it here making it a 0 bal and map other bank accounts so that they also come under one single id to get saved from mab requirement.
Also the interest earned on fd/sb is taxable while cashback is not if i am not wrong

 

[Shubham Yadav]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

You are thinking wrong and taking very microscopic view

Sometime hdfc send offers time to time for vouchers

Like i get spent 1000 and get 1000 rs amazon voucher (250*4)

Many other thing which need to be considered such great cards heavy discount.

All about is 25k and 10k that is not too much

 

[SSV]

You are thinking wrong and taking very microscopic view

Sometime hdfc send offers time to time for vouchers

Like i get spent 1000 and get 1000 rs amazon voucher (250*4)

Many other thing which need to be considered such great cards heavy discount.

All about is 25k and 10k that is not too much

That is academic and yours is practical...

but everybody needs to start somewhere and he started at his comfort zone...which is perfectly alright...

 

[Sourabh_13]

Thanks everyone for your suggestion/comments!

@Shubham Yadav Can you please tell me how often do one gets offers similar to the one you mentioned (rs. 1000 agvs on spending rs. 1000)?

@everyone
Regarding other things:
- I have the APAY ICICI card and prime membership, so I get 5% on amazon.
- yono + sbi cc (dc well) gives 5% off on Flipkart
- I have more than enough railway lounge accesses per quarter from different ltf credit cards
- I have a ltf card with airport lounge accesses but I hardly get to see the airport
-I have the HDFC IRCTC CC which suits me as I am a frequent train traveller. The card is also useful for instant discount offers during sales on various sites (I mostly order only from Amazon and Flipkart)
- I have a RuPay platinum DC which is useful for 20% off on utility spends

Considering all of this, do you still think it would be advantageous for me open a HDFC savings account (normal/max), if we assume my CC spends are just around 1.3L?

 

[SSV]

Thanks everyone for your suggestion/comments!

@Shubham Yadav Can you please tell me how often do one gets offers similar to the one you mentioned (rs. 1000 agvs on spending rs. 1000)?

@everyone
Regarding other things:
- I have the APAY ICICI card and prime membership, so I get 5% on amazon.
- yono + sbi cc (dc well) gives 5% off on Flipkart
- I have more than enough railway lounge accesses per quarter from different ltf credit cards
- I have a ltf card with airport lounge accesses but I hardly get to see the airport
-I have the HDFC IRCTC CC which suits me as I am a frequent train traveller. The card is also useful for instant discount offers during sales on various sites (I mostly order only from Amazon and Flipkart)
- I have a RuPay platinum DC which is useful for 20% off on utility spends

Considering all of this, do you still think it would be advantageous for me open a HDFC savings account (normal/max), if we assume my CC spends are just around 1.3L?

Do you want stay stagnant for quite some period into the future
OR
Looking forward to expand your financial / credit card journey??

 

[Deleted member 21942]

Is RuPay Platinum DC free with any bank account?

 

[kwaver]

For Savings Max, if you keep FD of 1.5L, you still get ~7% returns and AMB of 25k is not required.

 

[shrewdoc]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

If you're on the early stages of your financial journey, having multiple accounts don't seem to be the right choice.

If you're thinking twice for maintaining 25k AMB, then that suggests two things: EITHER you already have other bank accounts with liquid cash there OR you can't maintain 25k mab in account.

If you fall in the second category, that suggests that your CC spends are not enough that you should worry about petty 1% cashback from HDFC (~ 50-100)

If you belong to the first category, that means you're financially strong enough to maintain that account and having thoughts if it's wise to maintain that balance. In that case, do your cost benefit analysis on other accounts you own about the benefits you're getting there vs at hdfc. Consider your spends per month and add that into consideration as well.

You'll get your answer there.

So basically, if your spends are under 10k per month, don't go for a new account.

If you can open an FD of 1L in Semi-Urban and Rural or 1.5L in Urban and Metro locations, go for that approach instead.

 

[insight]

Well put maths and analysis in this very informational contextual and knowledgeable thread.

 

[Sourabh_13]

Is RuPay Platinum DC free with any bank account?

NSDL (Account maintainance charges ₹5.90 per month (including taxes)).
IDFC Future First Account (Additional DC - FIRSTAP; which has an issuance fee of ₹99+taxes and has no annual charges)
BoB: was offering a virtual debit card but not anymore.
Yes Bank: Yesterday, I read on the forum that Yes Bank is giving a LTF RuPay Platinum DC with the BSBDA account.

 

[Copycat]

I do not have a HDFC savings account and was thinking to open one just for the 1% cashback offer on CC bill payments. Following is a small exercise I did to decide it.

Savings Account options:

1. Normal savings account:
- Min. balance: 10K
- Interest: 3% pa
- Millena DC: Rs. 500 + taxes
- Platinum DC: Rs. 750 + taxes

If I book a FD of 10K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.400/year.

Millenia DC:
Total expenses per year: 400 + 500 + taxes ~ 1K
Min CC spends to cover these expenses: 1L

Platinum DC:
Total expenses per year: 400 + 750 + taxes ~ 1.2K
Min. CC spends to cover these expenses: 1.2L


2. Savings Max account:
- Min. balance: 25K
- Interest: 3% pa
- Platinum DC: Free

If I book a FD of 25K, I can earn ~7% pa. So by keeping that money in the savings account, I am loosing 4% that is Rs.1000/year.

Platinum DC:
Total expenses per year: Rs. 1000/year
Min. CC spends to cover these expenses: 1L



Currently, I get 0.25% cashback on my CC bill payments. Hence, to really not to bear losses, my CC spends should be 1.3L.

Findings of this small, simple and fun-filled exercise suggest that:
(1) going through the hassle of opening the HDFC savings account only for the 1% cb on CC bills makes sense only if I my CC spends in a year are 1.3L or more.
(2) I should factor-in the existing cb and not be delusional by simply assuming I am going to earn 1% for equal CC spending as earlier.
(3) It is ok to open the Savings Max account.

P.S.: I know this exercise matters only to people like me who are not rich (yet 😜). @everyone, please let me know if I am missing something.

EDIT: Sorry, I see that Shrewdoc already suggested that here: https://www.technofino.in/community...c-only-for-1-cb-on-cc-bills.19675/post-426155
Actually, you are missing something really important
The Savings Max account becomes a zero balance a/c if you keep an FD of 1L or 1.5L (rural/urban). If you redo your exercise now, you'll find the results to be quite different (see 4th column)

https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=/Common/pdf/service-fees-July-2023-28-07-23.pdf

I speak from experience. That is what I've done

 

[insight]

NSDL (Account maintainance charges ₹5.90 per month (including taxes)).
IDFC Future First Account (Additional DC - FIRSTAP; which has an issuance fee of ₹99+taxes and has no annual charges)
BoB: was offering a virtual debit card but not anymore.
Yes Bank: Yesterday, I read on the forum that Yes Bank is giving a LTF RuPay Platinum DC with the BSBDA account.

Good summary of RuPay Platinum Debit options. YB are dragging their feet in opening account.