Mint Explainer: What the ultra-rich can expect from private debit cards
Summary
- Customers with high account balances or high relationship value can opt for such cards
Recently, IDFC First and Yes Bank launched exclusive debit cards for high-networth and ultra-high networth individuals (HNIs and UHNIs). These cards offer some exclusive benefits to their high-end customers such as complimentary golf course access, higher insurance covers and more frequent airport lounge visits.
Who is eligible?
The customer needs to have a high value relationship with the bank. The customer is offered a special savings account by the bank and as part of that, these cards can be availed.
Take the case of Axis Bank Burgundy Savings Account. To be eligible for such an account, the client needs to maintain an average quarterly balance of ₹10 lakh across savings and current accounts.
Alternatively, the customer should maintain a minimum total relationship value (TRV) of ₹30 lakh or of ₹1 crore (including demat holdings).
Someone receiving monthly salary of ₹3 Lakh in Axis Bank salary account will also be eligible for these accounts.
To be eligible for Yes Bank’s Private Programme, the customer needs to have a minimum average monthly balance of ₹3 crore in current and savings account (CASA) plus fixed deposits, or a total relationship value of ₹5 crore at a family level, or a minimum net salary credit of ₹1 crore per annum in Yes Bank’s salary account.
What are the benefits?
Most of the private banking programmes offer higher daily cash withdrawal limits to customers. With IDFC First Private Debit Card, the customer can set a limit of ₹10 Lakh for daily withdrawal. As an Axis Bank Burgundy customer, the daily withdrawal limit is ₹3 Lakh.
Insurance coverage also comes along with these cards. With IDFC First Private Debit Card, the accident insurance cover is ₹1.5 crore.
Yes Private Debit Card offers accident insurance cover of ₹20 lakh to cardholder. In the case of Axis Burgundy, accident cover amounts to ₹15 lakh.
“Other benefits that come with private banking services are investment-related services, advisory on high-ticket investment products such as PMS (portfolio management services) and alternative investment products," points out Raj Khosla, founder and managing director of MyMoneyMantra.com.
“The accident insurance cover, as well as the lost card liability cover are important features that come with these cards," Khosla adds.
Yes Bank’s Private Debit Card also offers benefits on international cruise lines such as Avalon and Oceania.
Other lifestyle benefits that come with these cards include complimentary access to golf games, lounge visits at international and domestic airports and discounts on movie tickets.
Who should go for these cards?
Not all HNIs and UHNIs are comfortable using credit cards for their spending. Several prefer debit cards. So, these debit cards can be good alternatives for such customers, who want a large suite of exclusive benefits, but without the use of credit cards.
