Bank of Baroda Eterna or BoB Eterna credit card by BoB Financial (a 100% sub of Bank of Baroda) is a new entrant in the premium credit card space. It is the flagship card in BoB’s bouquet. The USP of the BoB Eterna is 5x rewards points on Online/Travel/Dining spends and unlimited domestic lounge access, including add-on cards. Currently, online spends include all online spends, even wallet loads and utility bill payment, which is just awesome.
Below is my detailed take on the card
BoB Eterna Credit Card
Fees and Eligibility:
- Joining fee of INR2,499 + GST. (Waived on spending 25,000 in first 60 days)
- Annual fee INR2,499 + GST. Waived on spending INR250,000 in a year.
Rewards and Benefit:
- 6 months FitPass Pro membership
- The website mentions about 10000 reward points on spending 50k within 60 days. I believe that one will not get both joining fee waiver and 10k reward points. Someone who owns the card can shed more light on this.
- Buy One Get One on movie ticket via Paytm app (up to 250) every month.
- 20,000 bonus reward points on spending 500,000 in a year. (equivalent to INR 5000 or 1% of spends)
- 3 reward points on every 100 spent. 1 reward point = 0.25p. 0.75% reward rate.
- Accelerated Reward Points:
- 15 reward points (5x) on every 100 spent on Online/Dining/Travel. Wallet load and utility spend are considered as online spends. 3.75% reward rate
- 1% fuel surcharge waiver
Lounge Access: (Both for primary and add-on cardholders)
- Unlimited domestic lounge access via Mastercard
How to maximize benefits on BoB Eterna
As mentioned earlier, the USP of BoB Eterna credit card is 3.75% reward rate on all online spends. Thus the most optimal way would be to spend 400,000 in a year online (33,300 in a month). 33,300 a month on online spends is to max out the 5x quota. This is not difficult, given that spends on Amazon, Flipkart, wallet load, utility bill payment etc. are all considered for 5x reward. The remaining 100,000 a year can be spent online or even offline. This results in an effective reward rate of 4.15%, which is super awesome. Further, given that wallet load is considered for online spends, even insurance premiums paid will give 3.75% return.
Another way to look at BoB Eterna credit card is to calculate the reward rate in the worst case. Assume one spends around 500,000 annually on PoS machine i.e. offline. One would get 0.75% standard reward rate on spends and 1% as milestone benefit i.e. total 1.75% reward rate. This is still very good considering that at this spending level the annual fee is already zero and we have not yet accounted for the unlimited domestic lounge access benefit and BOGO on movie tickets via Paytm.
That’s not all, given that the reward points can be redeemed for statement credit without any charges makes BoB Eterna credit card an even more interesting proposition, especially during these times.
Thus, on the annual spends of 500,000, the reward rate should hover between 1.75% and 4.15% depending on the usage pattern. At 4.15% annual reward rate, BoB Eterna easily beats the SBI Prime credit card and comes very close to Amex Platinum Travel credit card in terms of reward rate.
Even in the worst case of 1.75% reward rate, BoB Eterna credit card is much better than Citibank Premiermiles. Citibank Premiermiles gives just 1.4%, after accounting for annual fees and assuming that entire INR500,000 are spent toward points accruing spends.
Drawbacks of BoB Eterna credit card
The card lacks any international lounge access, which is a dampener. BoB could have increased the annual fees by 100 or so and easily offered international lounge access.
The biggest drawback as of now is that one doesn’t get to see many offers from BoB, the way one sees from other leading card issuers. However, given that Bank of Baroda is now getting serious about BoB Financial, especially after the blockbuster SBI Card IPO earlier this year, one may expect this to change very soon. (Btw, the current Bank of Baroda MD, Mr Sanjiv Chaddha, was heading the investment-banking unit of SBI, SBI Capital Markets, before joining Bank of Baroda. So fair to assume that IPO of BoB Financial is on the cards.)
No doubt, Bank of Baroda Eterna or BoB Eterna credit card is a very solid product with excellent reward rate. However, I feel that the current 5x rewards on online spends are unsustainable and soon there would be exclusions, for eg. Wallet load and utility bill payments. However, at the moment it remains one of the highest rewarding credit cards. If you are looking for a high reward rate credit card, get the BoB Eterna and maximise the benefits. The day they announce exclusions on online spends, redeem all your points for a statement credit and bid adieu to the card.
Do you own the BoB Eterna credit card? Do let me know your views about it and whether one gets both the fee waiver and 10,000 reward points in the first year?