Cashback is the simplest form of benefit a credit card can offer you. You spend money and you get real value back, instead of earning rewards and later redeeming them for cash, vouchers or other items.
While some of these cards offer direct cashback across selected categories like grocery and bill payments, others offer co-branded benefits on everyday brands like Amazon, Flipkart, Zomato, etc. Thereby, even if you are not a high spender, you can get a cashback card for using it on your day-to-day expenses.
“Assess your monthly expenses and identify the categories where you spend the most. Typically people spend more on categories such as groceries, fuel, dining, shopping, travel, and utility bills. This will help you prioritise the types of cashback offers that would benefit you the mos,” said Adhil Shetty, CEO of BankBazaar.
Certain customers these days also have options to opt for a credit card that rewards them with cashback or points for every spend, this is typically 1 per cent. However, some cards can offer more depending on the type of the cards and eligible customer.
Even if you are not spending much, these cards give you cashback and reward points every time you use your card to make a transaction. There could be some exceptions so at the time of applying you much thoroughly check the credit card and its features to ensure it fits your requirements.
You can also select a card based on whether you have brand preferences or not.
“For benefits on multiple brands, HDFC Millennia can be a suitable option, whereas, for high value back without any merchant restrictions, Cashback SBI Card can be considered,” said Chibber.
Point to note: Many cashback credit cards come with annual fees. “Some cards waive the annual fee if you meet a minimum spending requirement, so factor that when you apply for a cashback credit card,” said Shetty.
1. Cashback SBI Credit Card
The annual fee: Rs 999
Key benefits: 5% cashback on all online spends with no merchant restrictions
1% cashback on all offline spends
The annual fee: Rs 499
Key benefits:
5% cashback on using Google Pay for utility bill payments- electricity, internet, gas, DTH, mobile recharges, etc
4% cashback on Swiggy, Zomato & Ola
2% cashback on all other spends
3.Amazon Pay ICICI Credit Card
Annual fee: Nil
Key benefits: 5% cashback on Amazon for Prime Customers
3% cashback on Amazon for Non-Prime Customers
2% cashback on 100+ partner merchants
Annual fee: Rs 500
Benefits: Amazon e-voucher worth Rs 500 as welcome benefit
25% cashback on Airtel Mobile, Broadband, WiFi and DTH bill payments via Airtel Thanks App
10% cashback on utility bill payments via Airtel Thanks App
10% cashback on Swiggy, Zomato, and BigBasket
1% cashback on all other spends
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5.HDFC Millennia Credit Card
Annual fee: Rs 1,000
Key benefits: 1000 Cash Points as welcome benefit
5% Cashback on Amazon, BookMyShow, Cult.fit, Flipkart, Myntra, Sony LIV, Swiggy, Tata CLiQ, Uber and Zomato
1% cashback on all other spends (except Fuel) including EMI & Wallet transactions
Gift voucher worth Rs. 1,000 on spending Rs. 1 Lakh & above in a quarter
Annual fee waiver on spending Rs. 1 Lakh or more in a year
Note: All card information is sourced from the card provider website as of 18 July, 2023.
While the specific best credit cards for cashback in India can vary based on individual spending habits and preferences, here are some options known for their cashback rewards, according to an analysis by BankBazaar: Yes Bank Finbooster Credit Card, HDFC Bharat Credit Card, HSBC Smart Value Card, HDFC Bank MoneyBack Credit Card among others.
How to choose the right cashback credit card and maximise it?
“For example, if you plan to use the card mainly for groceries, the Standard Chartered Manhattan Platinum Credit Card would be good for you. However, if you wish to be rewarded for fuel expenses, their Super Value Titanium Credit Card would be better,”according to Paisabazaar.
Once you have narrowed down your options, you should compare the cards on the basis of annual fee, cashback rate, bonus categories, etc.
Which is better- cashback or rewards?
You can consider a cashback credit card as well. This is if the rewards credit card does not cover a certain spending category that you tend to spend most on.