Does SBI charge a redemption fee when I use my credit card reward points for flights, vouchers, or cashback? If so, how much is it, and is there a way to avoid it?
Yes, SBI does charge a redemption fee when you redeem your reward points, which is something a lot of people don’t realize until they actually try using them. The fee is ₹99 + GST (around ₹117 total) per redemption request. This applies whether you’re redeeming for flights, vouchers, merchandise, or even statement credit.
I found this out the hard way when I tried to redeem my points for an Amazon voucher, only to see a ₹117 charge on my statement. It’s not a huge amount, but if you’re redeeming small amounts frequently, the fees can add up. To avoid unnecessary charges, I now wait until I have a large number of points and redeem them in one go instead of multiple smaller redemptions. Also, some premium SBI cards like SBI Elite and SBI Prime offer better redemption rates, so if you have a high-spending pattern, it’s worth considering an upgrade.
So, while SBI reward points are useful, the redemption fee is an annoying little catch that you should factor in before planning your redemptions!