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Axis Magnus Magnus, Reserve & Other Axis Bank Credit Cards | Devaluation w.e.f. 1st Sep 2023.

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bugmenot

bugmenot

TF Legend
-- Edited Post --

Final Update

Official PDFs are now out
Magnus - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/mgtc.pdf

Reserve - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/rstc.pdf

Revision of Axis Bank Miles/Rewards Transfer Program - https://www.axisbank.com/docs/defau...les-rewards-transfer-terms-and-conditions.pdf


Update: 2nd August

MyZone - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/mztc.pdf
Privilege - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/pvtc.pdf
Select - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/sltc.pdf
Ace - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/actc.pdf


Magnus devaluation highlights
  1. Revision in welcome benefits, which are more or less matching with the leaked screenshots
  2. Change in annual fee - ₹12,500 + GST
  3. No more renewal benefit
  4. Spend criteria for fee waiver is now double - 25L
  5. Exclusion of government institutions and utilities MCCs for earning ERs
  6. RIP 25,000ER/1L milestone benefit
  7. Revised transfer ratio of 5:2
  8. 5L ER points cap for transfer
  9. Burgundy account scheme
Reserve devaluation highlights
  1. Spend criteria for fee waiver is revised to 35L
  2. Exclusion of government institutions and utilities MCCs for earning ERs
  3. Revised transfer ratio of 5:2
  4. 5L ER points cap for transfer
  5. Burgundy private account scheme

Aap Chronology Samajiye
  • 📄 Few leaked screenshots of PDF started floating for Magnus and Reserve having potential devaulation
  • 🐦Few folks on Twitter acknowledged the upcoming devaulation by contacting their RMs or insiders from CC department
  • 🎧 Customer Care team were like "Whot Daa Phaak" is going on. They were unaware about these news, some were saying yes and some no
  • 😡 Outrage | Speculation | Twitter Space | Points Transfer Tricks
  • ✋ Then rumour mills started about devaulation being on hold
  • 🔗 Official links of devaulation PDF started popping but "Darling of Cards" was missing
  • 🔌 Axis pulled the plug and links started showing "404 - Not Found" except for unlucky Flipkart card
  • 💣 BOMB - Axis Gift Edge devaulation
  • 📩 Mass credit card cancellation and notice seeking clarification regarding commercial transactions
  • 📉 Official PDF of Magnus and Reserve released
  • 📉 Official PDF of MyZone, Privilege, Select and Ace released

1. Flipkart - https://axisbank.com/docs/default-s...flipkart-credit-card-terms-and-conditions.pdf

Below given links are not opening now as they have been removed. You may check attached PDFs.

2. Reserve - https://axisbank.com/docs/default-s...-reserve-credit-card-terms-and-conditions.pdf
3. Select - https://axisbank.com/docs/default-s...k-select-credit-card-terms-and-conditions.pdf
4. Privilege - https://axisbank.com/docs/default-s...rivilege-credit-card-terms-and-conditions.pdf
5. MyZone - https://www.axisbank.com/docs/defau...-my-zone-credit-card-terms-and-conditions.pdf

By following the format, it is quite easy to create Magnus link, which could be https://axisbank.com/docs/default-source/default-document-library/credit-cards/axis-bank-magnus-credit-card-terms-and-conditions.pdf
 

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MilesMax said:
What would your plan have been if you didn't have Infinia? (And applying for Inifnia is not an option)
Where would you move your spending to?
Click to expand...
Mate - It all depends that what other cards you have or eligible for. If I wouldn't had Magnus my next bet would have been spend criteria based co-branded cards of Vistara. Why I bet more on Infinia than Magnus is also due to flexibility of choice. I can open smartbuy and book ANY flight instantly thru my points which is definitely not possible through edge reward points.
 
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hrish88 said:
Also the difference is 4% and not 7.5% because you will get interest in a savings account also.so one has to lose 40-45k in interest if he decides to put 10L in savings vs 10L in FD. Also, 10L savings is not the only way. people can get burgundy via 30L TRV also.

Anyways it depends on the individual.its not always about saving money sometimes its about aspirations also.for someone targeting high-end Marriot property costing 15L for 5 nights in Maldives this card is more important than getting 45K more in interest.
Click to expand...
Exactly.
Also 45k - 15k (renewal fee) = 30k
also, 1L additional Accor points or ITC points from (5:4 rather than 5:2) are worth a lot more than 30k INR.
 
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sharad131 said:
Mate - It all depends that what other cards you have or eligible for. If I wouldn't had Magnus my next bet would have been spend criteria based co-branded cards of Vistara. Why I bet more on Infinia than Magnus is also due to flexibility of choice. I can open smartbuy and book ANY flight instantly thru my points which is definitely not possible through edge reward points.
Click to expand...
Yeah totally. Infinia is great, no doubt about that. But getting one is really tough.

I am a part of the Burgundy family account of 4 so Magnus is still my go-to in future unless Axis does something worse.
For someone without Infinia, Magnus + Burgundy is still a good choice for high spenders (15L+) who know how to use the multipliers well.

Anyway let's see what happens at 4pm today
 
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rockysindona said:
Can anyone please shed some light on this?
Click to expand...
Nah Japan Airlines is useless, their miles + tax requirement is really high, For Example Delhi to tokyo Economy is 33000 Miles + 27000 Rs Tax that is too much JAL Mileage Bank is Useless i wasted my 50000 ER on that, never transfer to JAL, and you can get Revenue ticket to Delhi to Tokyo for as low as 35000 Rs. so do the math.
 
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rogerthat said:
I can't understand why people are parking 10L in a savings account to get Magnus even at 5:4 transfer rate.

Some banks are offering like 7.35% interest on FDs currently (up to 8% if senior citizen). You would have to spend Rs.2.25 lakhs on the Magnus+Burgundy card every month (excluding TE/GE/GD, government, utilities, rent, fuel, wallet, etc.) to match this 7.35% rate of return.

Per month 150,000/200*12=7200 ER, 75000/200*35=13125 ER, Total=20,325 ER x 0.8=16,260 miles which makes it 195120 miles on 27 lakh spends annually giving a 7.26% return, or maybe 7.7% if you consider the saved annual fees.

And interest is cash and definite while ERPs are not. Axis being Axis can decide to even do away with miles transfer tomorrow.

Correct me if I am wrong or I have missed anything?
Click to expand...
Your calculations are incorrect.
Here is the comparison with the data you have assumed :

FD - 7.35%
Axis savings - 3%

Difference due to interest rate - 4.35% of 10L = 43.5K

Since both FD and savings are taxed at slab, for someone in 30% bracket (plus 4% cess) - 5.06% interest rate for FD and 2.06% rate for savings.
So difference = 30K.

You need enough reward points to account for 43.5K or 30K worth of lost interest income.

Assuming 1ER=0.8 miles and 1 mile = 0.8 INR (i.e ignore accor), you need to generate 67969 ER (No tax) or 46875 ER (30% tax) in a year.

Effectively, if you spend 94K per month (no tax) or 65K per month (30% tax), you break even.

However, do remember that you need to spend this amont every month just to break even (no advantage of ER since it's offset by interest).
You start gaining ER only if your spends are above this value.

It's not for everyone - but some people who are in the 30% slab rate would have these spends (65K every month) and they will benefit if they spend more than this.

If someone already has other good return cards - it may not be very beneficial to them as well.

This excludes 5X on traveledge and no fee for Burgundy.
Also, you get unlimited lounge access, BMS and eazydiner - whether this is worth spending the first 65K every month without rewards is the question.
 
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hello11 said:
Your calculations are incorrect.
Here is the comparison with the data you have assumed :

FD - 7.35%
Axis savings - 3%

Difference due to interest rate - 4.35% of 10L = 43.5K

Since both FD and savings are taxed at slab, for someone in 30% bracket (plus 4% cess) - 5.06% interest rate for FD and 2.06% rate for savings.
So difference = 30K.

You need enough reward points to account for 43.5K or 30K worth of lost interest income.

Assuming 1ER=0.8 miles and 1 mile = 0.8 INR (i.e ignore accor), you need to generate 67969 ER (No tax) or 46875 ER (30% tax) in a year.

Effectively, if you spend 94K per month (no tax) or 65K per month (30% tax), you break even.

However, do remember that you need to spend this amont every month just to break even (no advantage of ER since it's offset by interest).
You start gaining ER only if your spends are above this value.

It's not for everyone - but some people who are in the 30% slab rate would have these spends (65K every month) and they will benefit if they spend more than this.

If someone already has other good return cards - it may not be very beneficial to them as well.

This excludes 5X on traveledge and no fee for Burgundy.
Also, you get unlimited lounge access, BMS and eazydiner - whether this is worth spending the first 65K every month without rewards is the question.
Click to expand...

Reducing the difference even further --> Under Section 80TTA of the Income Tax Act, Interest up to 10k on Savings account is also not taxable. This can be claimed while filing returns.
 
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It's only fruitful if you're already holding FDs over 30 lacs or have that much money saved up that you can put in FDs. Basically Axis Bank is trying to make the Magnus beneficial only for those who pony up 30 lacs as FDs or 1 crore in mutual funds and other holdings. 10 Lacs in savings account is a waste no matter what they offer with Mangus (exception: they start giving 25k ERs again, then it can be a point of discussion)
rogerthat said:
I can't understand why people are parking 10L in a savings account to get Magnus even at 5:4 transfer rate.

Some banks are offering like 7.35% interest on FDs currently (up to 8% if senior citizen). You would have to spend Rs.2.25 lakhs on the Magnus+Burgundy card every month (excluding TE/GE/GD, government, utilities, rent, fuel, wallet, etc.) to match this 7.35% rate of return.

Per month 150,000/200*12=7200 ER, 75000/200*35=13125 ER, Total=20,325 ER x 0.8=16,260 miles which makes it 195120 miles on 27 lakh spends annually giving a 7.26% return, or maybe 7.7% if you consider the saved annual fees.

And interest is cash and definite while ERPs are not. Axis being Axis can decide to even do away with miles transfer tomorrow.

Correct me if I am wrong or I have missed anything?
Click to expand...
 
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