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Federal Bank Issued Federal Bank Signet Credit Card In partnership with National Payments Corporation of India (NPCI) and Visa. signet credit card offer 3x rewards on expenditure for electronics and apparel categories, 2x prizes on entertainment category and 1x prizes for other categories. One Federal Rewards is priced at Rs.0.25. So, you will get a return of 0.75% on Electronics & Apparel, 0.50% on Entertainment and 0.25% on all other expenses.
In addition to reward points, Federal Bank Signet Credit Card Amazon Pay also offers an e-voucher worth Rs 500 as a welcome benefit if you spend Rs 3,000 within 30 days of card issuance. The main advantage of this credit card is the lowest APR (Annual Percentage Rate, which is the lowest in the current market).
Here is a detailed review of the Federal Bank Signet Credit Card which will help you understand the advantages and disadvantages of this credit card to make an informed decision.
what is next
- main idea
- good and bad
- Rates and Fees
- Why You Might Go For Federal Bank Signet Credit Card?
- Why would you want to go for another card?
- Is the Federal Bank Signet Credit Card Good for You?
main idea
- Minimum Annual Percentage Rate (APR) Starting at noon 0.49% (5.88% p.a.)
- 3x Rewards at the expense of Electronics & Apparel Category spends.
- 2x Rewards Feather entertainment Category spends.
- 1x Rewards for other all expenses Categories.
- 500 as Amazon Pay e-voucher welcome benefit.
- 8 domestic airports complimentary lounge access.
- 8 international airports complimentary lounge access.
- Annual fee of Rs 750
- The annual fee can be waived if you spend Rs 75,000 or more in the previous year.
- You can get additional credit card by paying Rs.100
- buy one get one INOX Movie Tickets.
- Complimentary Swiggy Vouchers on Quarterly 20,000 expenses
- The Fed Delights program is offering up to 15% off.
- rupay offers and deals as additional perks.
good and bad
Pros✔
- Lowest APR in the credit card market.
- 8 domestic airports complimentary lounge access.
- 8 international airports complimentary lounge access.
- Welcome benefit of Rs.500
Opposition
- Minimum Reward Rate.
- The lowest rate is not available to everyone.
full review
Here is its full review Federal Bank Signet Credit Card.
Rates and Fees
| type | Rates ($) |
|---|---|
| joining fee | 750 |
| Annual Fee | 750 |
| regular april | Regular APR Start from 0.49% (5.88% p.a.) from 41.88% |
| Cash Advance Fee | 2.5% of the transaction amount or Rs. 500 whichever is higher |
| Excess duty | 2.5% of the over-limit amount of Rs. 500 whichever is higher. |
| prize redemption fee | Rupee. 99/- per redemption request |
| loan processing fee | 2.5% of the loan amount or Rs.500, whichever is higher. |
| foreign exchange fee | 3.5% of the transaction amount |
| Reissue Lost Card | 200 |
Why You Might Go For Federal Bank Signet Credit Card?
Here are 5 main benefits of the Signet RuPay Credit Card.
(1). Lowest APR rate in the industry.
NS Federal Bank Signet Credit Card Offers the lowest revolving credit (APR) in the industry. The lowest APR is 0.49% month by month or 5.88% annually. However, similar to other credit cards in the market, the highest APR is 41.88% annually.
The APR differs from customer to customer, and the APR rate is based on your average monthly balance at Federal Bank for the last quarter. Let’s understand how Federal Bank calculates APR.
| Last quarter AMB in your bank (federal bank) |
Suitable (APR%) |
|---|---|
| Your balance is less than Rs 50,000 | 41.88% (3.49% per month) |
| Your balance Rs. 50,000 – 3,00,000. is between | 30.00% (2.49% per month) |
| Your balance Rs.3,00,001- 10,00,000. is between | 18.00% (1.49% per month) |
| Your balance is more than Rs.10,00,000 | 5.88% (0.49% per month) |
| Federal Bank does not have a bank balance | 41.88% (3.49% per month) |
It is clear from the above calculation that if you have an AMB of Rs 10 lakh or more in the previous quarter, can you avail the lowest APR rate of 5.88%.
If you are not banking with Federal Bank, this credit card is as normal as any other bank credit card.
(2). Excellent Complimentary airport lounge access.
Federal Bank offers very good complimentary airport lounge access. Here are all the details.
- Domestic Airports: 2 per quarter (8 yearly) at domestic airports
- International Airport : 2 per quarter (8 yearly) at domestic airports
Lounge access will be provided as per the types of credit cards. Suppose you have Federal Bank RuPay Signet Credit Card. In that case, the Lounge Access Program will be provided in accordance with the terms of the National Payments Corporation of India (NPCI), and if you hold a Visa Signet Credit Card, the Program will be governed by the Visa Lounge Access Program. you can check Visa Access Lounge Program here.
Most entry-level credit cards do not provide airport lounge access similar to how the Signet credit card provides excellent airport lounge access. For this reason this credit card can be given.
(3). welcome benefit
If you spend Rs.3000 or more within 30 days of credit card activation, you will get an Amazon Pay e-voucher worth Rs.500 as welcome benefit. The e-voucher will be sent to you by e-mail or SMS.
The membership fee is Rs 750, and you are paid only Rs 500 as welcome benefit. You still lose Rs.250 + GST on joining Federal Bank Signet Credit Card.
(4). The Annual Membership Fee (AMC) of Rs 750 can be waived.
If you have spent Rs 75,000 within the previous year, your credit card annual renewal fee of Rs 750 should be waived. However, such entry-level credit cards should never charge an annual fee. Almost all entry-level credit cards nowadays come with no annual fee.
Federal Bank should consider waiving the annual fee unconditionally in order to capture the market.
(5). additional allowances
- Personal accident cover of Rs. 2 lakh a
- 24*7 Concierge Services
- Unlimited attractive cashback offers across various brands through RuPay deals and offers.
- BOGO OFFERS (BUY ONE GET ONE) On INOX movie tickets, once a quarter.
- Complimentary Swiggy Vouchers on Quarterly 20,000 expenses
- 15% discount partner hotels. Through Fed Delights Program.
Why would you want to go for another card?
Here is the main disadvantage of Federal Bank Signet credit card which will compel you to go for another credit card.
# (1). Poorly structured rewards program.
The rewards program is poorly structured. How here? Here’s the Signet Credit Card Rewards Program.
| types of expenses | Prize | prize rate |
|---|---|---|
| Electronics & Apparel | 3X | 0.75% |
| entertainment | 2X | 0.50% |
| all other expenses | 1X | 0.25% |
| value of a prize point | 25pps |
If you spend Rs.100 on electronics and apparel, you will get 3X rewards (three reward points for every Rs.100 spent); However, if you spend on other categories of expenses, you will only get 1 reward which is equivalent to 0.25% of the reward.
If this credit card is compared with any other credit card in the market then the reward rate is very less. Even entry-level credit cards like SBI Cliq credit card have better reward proposition than this card.
# (2). Minimum APR of 5.88% is just a market gimmick
Offering the lowest 5.88% APR is the only market move to attract public attention. If you don’t have an account with Federal Bank, you can get a lower APR rate.
The minimum APR of 5.88% is available only for the person who maintains an average monthly balance for the last quarter of at least Rs. 10 lakhs. If you can keep Rs 10 lakh as AMB in a bank, why would you choose this credit card or take a loan against credit card?
#3. redemption fee
You will be charged a redemption fee of Rs 100 to redeem the rewards, and this will reduce the overall rewards rate, which is already bad.
what is the difference between rupay signet credit card And visa signet credit card
The only differences between the two cards are the airport lounge access benefits and additional perks, summarised.
| type | visa signet | rupay signet |
|---|---|---|
| Domestic Airport Lounge Access | 2 per quarter | 2 per quarter |
| International airport lounge access | None | 2 per quarter |
| extra features | Visa Cashback and Extra Deals | Rupee Cashback & Extra Deals |
eligibility criteria
The eligibility criteria are simple; Given below is the list that must be completed to get this credit card.
| type | Condition |
|---|---|
| Ages | Your age should be between 21 to 60 years. |
| Resident | You must be a resident of India |
| Income | Your income should be Rs 18,000 or more in a month. |
How to Apply for Signet Credit Card?
Federal Bank Signet Credit Card opens on their website to apply. You can visit the official website of Federal Bank and apply online. Here is the screenshot of the application.
Is the Federal Bank Signet Credit Card Good for You?
The Federal Bank Signet Credit Card is similar to any other entry-level credit card, and the only difference is in airport lounge access benefits and a lower APR.
Federal Bank Signet Credit Card 2021 Review
I think the main advantage of this card is its complimentary lounge access offering. Entry-level credit cards don’t always offer lounge access benefits.
To me, the low APR rate of 5.88% is a market gimmick, not just something Federal Bank credit cardholders deserve.
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