Kotak Mahindra Bank Kotak Bank #811 Dream Different Credit Card is one of the best beginner cards for building credit history, since it can be issued against a fixed deposit.
Not only that, it is also a lifetime free credit card, with no annual membership fee. Free cards are simple to understand since you do not have to analyse whether the benefits of the card justify the annual fee of the card.
With the help of milestone benefit, you can make over 1% rewards, on online spends. The card also offers a unique railway surcharge waiver. Read on for more details.
Kotak Bank #811 Dream Different Credit Card – Summary
| Fixed Deposit based card / instant approval card | Credit card is issued against your fixed deposit, for customers between 18 years and 75 years of age – – For Non-811 saving account customers : minimum fixed deposit amount is ₹ 10,000 – For 811 saving account customers : minimum fixed deposit amount is ₹ 5,555 – Should be resident of India, NRIs can apply through the offline process Income documents not required , credit history not required (since card us issued against the security of a fixed deposit) Flexible credit limit , upto 80% of fixed deposit amount : You can choose a credit limit of your preference – upto ₹16,00,000 (this is based on the amount of your fixed deposit/s) |
| Lifetime free credit card | There is no annual fee on this card. – Welcome offer : you get 500 bonus reward points worth ₹125, on spending a minimum of ₹5,000 within 45 days of activating your card. |
| 0.50% benefit on online spends | You earn 2 points worth ₹0.50 , on every ₹100 you spend on online purchases. Since 1 point = ₹0.25 or 25 paise. – Reward points will not be offered on fuel and railway spends as the card also offers surcharge waivers on the same. – Reward points will not be offered on cash withdrawals. |
| 0.25% benefit on all other spends | You earn 1 points worth ₹0.25 , on every ₹100 you spend on all other spends. Since 1 point = ₹0.25 or 25 paise. – Reward points will not be offered on fuel and railway spends as the card also offers surcharge waivers on the same. – Reward points will not be offered on cash withdrawals. |
| Redeeming reward points | – You can redeem points for mobile recharge, shopping, e-vouchers, movies, travel, and more through the bank’s rewards platform – Kotak Rewards. – You can also pay with your reward points using Kotak PayByPoints by converting your reward points into currency at select merchant outlets. – Reward points are valid for 2 years. |
| Milestone Benefit : Additional benefit of upto 1% , on achieving yearly card spend target of ₹75,000 | On achieving yearly card spend target of ₹75,000 , you get either – – Cashback of ₹750/- (cashback will reflect in the next billing cycle) OR – 4 free PVR tickets (tickets can be used for any day and any show. Star Pass Code will be issued for online redemption at www.pvrcinemas.com) These offers need to be claimed within 3 months of the card anniversary date. You can always check your anniversary period under the milestone tab of your mobile banking or net banking account. |
| 1.80% – 2.50% railway surcharge waiver | The card offers a surcharge waiver for railway ticket bookings – – 1.80% for transactions made on the IRCTC website – 2.50% for transactions made at Indian railway booking counters – maximum waiver of ₹500 per year |
| 1% fuel surcharge waiver | 1% fuel surcharge waiver at all fuel stations – – Only on fuel transactions ranging between ₹500 – ₹3,000 AND – Only on fuel purchases upto ₹3,50,000 per year (since waiver amount is capped at ₹3,500 per monthly card statement cycle) – You need to meet both the above conditions to be eligible for fuel surcharge waivers |
| Other important fees & charges | – Late payment fee : ₹250 , for any amount over ₹0 – Over limit charges : Zero – Foreign markup fee : 3.50% of transaction amount , on all transactions outside India |
| Interest-free cash withdrawal | – You can withdraw cash up to 90% of your total credit card limit – No interest charged on cash withdrawals (unlike most other credit cards). However, a processing fee of ₹300 is charged per ₹10,000 withdrawn, hence ideally one should withdraw only in case of an emergency |
| 24/7 customer support | Please click here for all the options to contact the bank for various issues and escalations. |
| Step-by-step application process | Online application process – 1. Login to your Kotak Mobile Banking app or website and click on “Credit Card” in the Apply Now section. 2. Check the features of the credit card and select “Continue”. 3. Choose your credit card delivery address. 4. Set up fixed deposits – choose from existing FDs or open a new one and fund it through various options such as debit card/net banking, NEFT/IMPS, etc. 5. Enter the details of the fixed deposit and confirm. 6. Select your credit limit, which is upto 90% of your fixed deposit amount. 7. Accept the terms and conditions 8. You will receive an application reference number and the credit card will be delivered within 7 working days. Offline application process – You can also visit any of the nearest branches of the bank and talk to an executive regarding the process. To find the branch nearest to you, visit here. |
Pros and Cons of Kotak 811 Credit Card
- The card is lifetime free
- It is issued against a fixed deposit (secured card) and helps building credit history. Hence it is an ideal card for those with no credit history or those whose credit history is not very good. And is also ideal for those who do not meet the income criteria for other cards. Like students, housewives etc.
- If you meet the milestone benefit, you can get over 1% benefit rate on all spends, which is quite good for a beginner card
- In addition to fuel surcharge waiver, cardholders also get railway surcharge waivers ranging between 1.8% (on the IRCTC website) and 2.5% (on Indian railway booking counters)
- Benefits on secured cards can be lower compared to good rewards cards available in the market
Fees and Charges
| Fee | |
| Annual fee | Nil (lifetime free card) |
Late payment fee – depends on the bill amount due
| Total bill amount due | Late payment charges |
| Less than ₹100 | Nil |
| ₹100 – ₹500 | ₹100 |
| ₹500 – ₹1000 | ₹500 |
| ₹1000 – ₹5000 | ₹500 |
| ₹5000 – ₹10000 | ₹600 |
| ₹10000 – ₹25000 | ₹800 |
| ₹25000 – ₹50000 | ₹1000 |
| More than ₹50,000 | ₹1200 |
Foreign transaction fee : 3.50% of transaction amount
Important note
– GST/ other applicable taxes as per current laws, will be applicable on all fees and charges
– To view all/updated fees & charges on this card, please click here – Kotak Bank #811 Dream Different Credit Card Fees & Charges
Other Benefits for Cardholders
| Security features | Chip and PIN technology – security for offline transactions : In the past, credit cards typically used a magnetic stripe located on the back of the card to store and transact data. However, the latest generation of credit cards includes a CHIP and PIN feature, which provides enhanced security. Only you know your PIN, so even if your credit card is lost, it is unlikely to be misused since BOTH the physical card and the PIN is required to spend on the credit card. Two-factor authentication – security for online transactions : When making an online transaction, you approve your online transaction by using a One-time Password (OTP) you get on your mobile phone. Since only you know the OTP, the card is unlikely to be misused unless someone has access to BOTH your card details AND your mobile phone. This ensures a safe online purchase experience. SMS alerts and notifications – for both offline and online transactions : For your peace of mind, you get free SMS alerts and notifications for all your credit card transactions. Hence you will know about all transactions on your credit card. In the unlikely scenario of misusing your credit card, you would still get these alerts and notifications – which will help you immediately block your credit card. |
Conclusion
Kotak Mahindra Bank #811 Dream Different Credit Card is one of the best beginner cards. It can help you build credit history, which will help you get better credit products in the future. It is also a lifetime free card, hence no cost-benefit analysis needs to be done, while you build up your credit history.
With the milestone benefit feature , you can make over 1% rewards on online spends, which is a decent reward rate for a beginner card. And it also offers a unique railway surcharge waiver, and also fuel surcharge waiver.
Apply Nowon Kotak Mahindra Bank website
Frequently Asked Questions
What is Kotak Bank #811 Dream Different Credit Card?
Kotak Bank #811 Dream Different Credit Card is a good beginner card which helps you build your credit history. It is an instant approval card since it is issued against your fixed deposit. It is also a lifetime free card, and offers rewards on your spends, and other benefits like railway surcharge waiver, and also fuel surcharge waiver.
Are there any hidden charges on the Kotak Bank #811 Dream Different Credit Card ?
There are no hidden charges on Kotak Bank #811 Dream Different Credit Card. However, it is still recommended to read the cardholders’ agreement thoroughly.
Can anyone apply for a Kotak Mahindra Bank Lifetime Free Credit Card?
Kotak Bank #811 Dream Different Credit Card is a card issued against your fixed deposit, anyone over 18 years of age can apply for this credit card.
What is the credit limit on Kotak Bank #811 Dream Different Credit Card?
The credit limit on Kotak Bank #811 Dream Different Credit Card is primarily determined by the amount of your fixed deposit , since it is a secured card issued against your fixed deposit.
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