Your child has to submit a school project on the Holy Land and insists on making it unique. One phone call to your personal assistant and someone is dispatched to the shores of the Dead Sea to obtain a handful of sand, which is then couriered to you. Want tickets to a sold-out Zubin Mehta show? Just reach for the phone again. Rent a private island, play Tom Cruise in a real Top Gun plane, experience zero gravity...just name your whim. And the genie doing backflips to make it all possible for you actually fits in your wallet.
Think platinum, or even better, black, to understand what we are getting at. In an age where carrying cash is gauche and gold credit cards are about as exclusive as toothbrushes, the only way to raise eyebrows is to flaunt premium plastic. Currently, about 1% of the 26 million credit card base in India owns a premium card, claims Parag Rao, head, products and portfolio, HDFC Bank.
What makes these cards truly exclusive is the fact that money can’t buy you one - you have to be invited. Like the American Express Platinum card or Citibank Ultima, both with joining fees of Rs 50,000. For those who don’t quite make it to the “it” list but belong to the high networth league, there is the ICICI Bank Visa Signature card and the HDFC Bank World MasterCard.
At a time when India boasts of one million-plus emerging affluent consumers (those earning Rs 20 lakh or upwards a year, who travel abroad at least three times a year, and entertain and dine out at least three times more than an average consumer) growing at 30-45% a year, even a lot of college graduates can afford the fees required for a premium card. So the question to ask is not who wants these cards, it’s who stands to derive the maximum benefits?WHAT YOU GET | CITIBANK ULTIMA | AMERICAN EXPRESS PLATINUM | ICICI BANK VISA SIGNATURE | STANDARD CHARTERED PLATINUM | HDFC BANK WORLD MASTERCARD |
REWARD POINTS | One reward point for every Rs 100 spent on the card | 2.5 points for every Rs 100; 10 times more for some spends | 4 points for travel spends of Rs 100; 5 for spends abroad | 0.8 reward points for every Rs 100 spent on the card | 2.6 reward points for every Rs 100 spent on the card |
APPLICABLE FEES (IN Rs) | Joining: 50,000; No annual fee | Joining: 50,000; No annual fee | Joining: 25,000; Annual fee: 2,500 | Joining: 4,995; Annual fee: 2,500 | Joining fee: 9,999; Annual fee: 2,999 |
INSURANCE OFFERED | Personal accident air cover of Rs 1 crore | Travel cover of Rs 1 crore; for fire/burglary: Rs 1.5 lakh | Air accident insurance of Rs 3 crore | Air accident insurance of Rs 1 crore | Air accident insurance of Rs 1.5 crore |
TRAVEL PARTNERS | Airline/hotel tie-ups keep changing | Discounted airfare and hotel stay | 50% cash back on select air tickets | 25% cash back on select air tickets | 6% cash back on select air tickets |
SUPPLEMENTARY CARD | Five free cards | Five free cards | One free add-on | Five free cards | Three free cards |
SPECIAL FEATURES | Free entry to CitiGold Wealth Management platform investment advice; the annual fee for such advice is Rs 25,000, at a conservative estimate | Get a free Longines watch and complimentary Kingfisher air tickets on signing up; in addition enjoy partner benefits that total over Rs 90,000 | Avail of exclusive travel privileges, from flying in a fighter jet to watching emperor penguins frolic in Antarctica | Discounts at top-end hotels, holiday packages, golf clubs and retail stores; a free ticket every time you book tickets at a PVR multiplex | Special offers on HDFC Bank loans and forex products — members get differential rates on loans against securities and auto loans |
As TR Ramachandran, business head, cards and personal loans, Citibank India, explains, “Research shows that the lifestyle, spending power, needs, aspirations and service expectations of the super-premium Indian customer are very similar to that of his rich and famous peers around the globe.” Hence these premium cards have been created to appeal to those at the top-end to supplement their lifestyle and enrich it.
But this is not just about exclusivity and prestige; it’s equally about getting value for one’s lifestyle expenses. For instance, all these cards come with 24x7 concierge services. Also, none of them have a preset credit limit. Banks further argue that premium cards pay for themselves because the rewards on offer are worth more than the fees charged.
Plus the interest rate on them is lower than regular cards. Says Amit Dutta, vice-president, engagement, brand and lending, American Express India: “The platinum card is designed to open up a world of privileges, which guarantee exclusive savings. On signing up, members get a welcome kit worth Rs 70,000.”
Another lure is the financial advice that comes free with them. With Citibank Ultima, for one, you automatically gain entry to the CitiGold wealth management platform, where the annual fee is over Rs 25,000. Then there are the reward points—these cards fetch more points for every Rs 100 spent on them than any other card. However, the rewards are only worth the annual fee if you use the card regularly.
Says Sachin Khandelwal, head, cards group, ICICI Bank: “The accelerated rewards structure offered means that the points earned increase with the spends. So, higher spending translates into higher number of reward points.” These cards are not just about snob value—smart spending will bring in reward points which in turn can be redeemed for holidays and gifts.
Adds Khandelwal: “For Visa Signature card, for example, the annual fee is waived if the annual spending is above Rs 3 lakh. These cards are not targeted at low-end customers.” But the final verdict has to come from users. Says Neeraj Kukreti, a senior manager with a leading MNC: “I could manage just as well with my previous gold card, but the services on my upgraded Amex platinum are unbeatable—especially the golf club membership that came with it.”
