How do I save Rs. 8,000 yearly from this credit card with no Annual Fee?

Why to pay in full when you can get things for less. It just require awareness and mindful spending.

Yes, you are thinking right !!!

It’s Credit Cards, which I can’t live without!!!

I even purchase a Rs.5 biscuit pack using the credit card. Yes, it’s insane!!!

I am not here to tell that you should go for credit cards. But yes, I am here to share my personal experience “how we can use credit cards more efficiently”. This post is to guide beginners who want their first credit card just after job and with no annual fee.

Let’s start with the prerequisite.

Prerequisite of the Card

  1. Minimum Age of 21 years and maximum of 60 years, if you are salaried.
  2. Minimum Age of 21 years and maximum of 65 years, if you are self-employed.
  3. Monthly in-hand salary of Rs. 15K – 25K, it can be changed based on your company value and reputation.
  4. HDFC Salaried Saving bank account can also get this credit card even with less salary.

Annual Fee

The card has the annual fee of Rs.500+18% GST.

Yes, it charges the annual fee, now don’t be puzzled how the card comes with Annual Fee as It was already mentioned no annual fees above. Please keep reading will let you know the ways to get the fees waived.

Now we can jump to our main part that,

How I save Rs.8,000 yearly from this credit card?

Till now you already have an idea that the card is provided by the HDFC Bank, and the card which I am using is HDFC Moneyback Credit Card. The card has multiple benefits lets discuss now.

HDFC Moneyback Credit Card

As the name suggest its a moneyback card, you can get your spending back in the form of cashback. Now, the hurdle is how to earn more and more cashback from this.

Let’s dive in !!

Personally, I do not have a saving account in HDFC Bank, those have the account can also use below approach using the HDFC Debit Cards. But then, you will not be able to enjoy the benefits of the credit card.

In my initial job days, major spending was in the form of Utility bills, Insurance, Online Shopping & Dining. But I choose this card mainly for Utility bills and Online Shopping. So you also first decide your spending and choose the card.

For payment of my utility bills and Travels, I choose Payzapp application which is a product of HDFC bank which generates major cashback flow if you have HDFC Credit Card.

ExpensesMonthlyYearlyYearly Payzapp CashbackR.P. Earned(2 for 150)
Electricity Bills1500180001800 (10% cashback upto 250 in a month)240
Phone Bills/Wifi1000120001200 (10% c.b. upto 250 in a month, scanning QR Code)160
DTH5006000600 (10% c.b. upto 250 in a month)80
Train Tickets, 4 rides in a year20002000200 + 200 (50 credits for each transact & 10% c.b. pay through payzapp)27
Ola Cabs2503000300 (10% c.b. refilling ola wallet upto 100 in a month)40
Online Spends(mobiles,laptop, appliances etc.)300003000 (10% Instant Cashback offers, buying mobile phones in sale)2000(10x Rewards using Payzapp Compare & Shop)
Travel (Flight Bookings)10000667(10x Rewards using Payzapp Compare & Book )
Hotels5000330(10x Rewards using Payzapp Compare & Book )
Total Rewards Earned3608
CashBack (Rs.20/100 RP)721
Total Payzapp Cashback7300
Total Savings in a year8021

More you can save on Movies, Groceries which I have not included here.

Rewards Points Redemption:

Below is the redemption of points on the basis of the 2 Rewards points for Rs. 150 spent:

Other Benefits:

IRCTC Ticket Booking:

If you book the ticket from IRCTC, in my case I do not travel much by trains but if someone travel through trains this card is going to be beneficial for you.

For every transaction you get Rs. 50 credit in your card’s bill + extra 10% off maximum to 250 if you pay through payzapp in a month. So you have a double benefit.




10% More Cashback paying through Payzapp

Spend Milestone Offer:

Get a gift voucher of Rs 500 every quarter for Rs 50,000 worth of retail spends. This offer mostly happens during the festival season. But don’t do over spending just to get Rs. 500 E-voucher.

Fuel Surcharge waiver:

1% Fuel Surcharge waived off on fuel transactions ( Minimum transaction of INR 400, Maximum Cashback of INR 250 per statement cycle).

Zero liability on lost card:

If you lose your Card, report it immediately to their 24-hour call centre After reporting the loss, you have a zero liability on any fraudulent transactions made on your card.

Online Spends:

If you do not want to spend through payzapp and choose directly to go E-commerce website, in that case, you will get the 2X rewards point which means 4 for every Rs.150 spent.

Insurance Benefits:

Do minimum 4 transactions using a Credit card every month and get

  • Free Accidental Death Insurance up to 50Lakhs*
  • Free Fire and Burglary protection for goods above Rs.5000 for 180 days

Ways to waive off the Annual Fee

Looking after that much saving, the annual fee of Rs.500 seems nominal. But still, we have ways to waived it off.

  1. Spend 50,000 in a year and get a waiver of next year’s annual membership fee.
  2. Register for the Smart Pays functionality by HDFC Bank to auto debit of the credit card bill directly from your bank account.
  3. Timely paying off the credit card bills helps you out in convincing the card provider for the annual fee waiver.

Welcome Benefit of 500 Reward Points and renewal benefit of 500 Reward Points if Annual fee not waived off.

Late Fee Reversal:

I found HDFC cards are best in terms of beginners, in early days of my credit card usage I forgot to pay the bill on-time so HDFC charged me 400 as late fee and it also gets reversed. This happened only one time, don’t try to pay the bills late every time, this is not meant for every month. Otherwise, it hurts your CIBIL Score and your pocket too.

Negative Points of this card

  1. Rewards points only accrued when the single transaction should be minimum of Rs.150.
  2. EasyEMI and e-wallet loading transactions will not accrue Reward points.
  3. Fewer Points redemption ratio which is 1:5.


After looking into the benefits of the card, I would say it is a good start for the beginner or newbie to apply for this card. You can also call it an all-rounder card which covers most of the expenses of your daily life. This is my personal choice to go with this card after checking features and benefits.

Please let me know through comments what you like and dislikes regarding this blog or can suggest any other card like this.

Financial Freedom Enthusiast

Spend 6 years in learning Stocks & Mutual funds Investment. A traveler from soul, finance is passion, Investment is hobby.

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