Cashback credit cards can help you save money on your daily purchases. With the right card, you can earn cashback on categories like grocery, dining, fuel, travel, online shopping, and more. Choosing the card that gives you maximum cashback on your frequent spending categories allows you to earn rewards passively.
In this comprehensive guide, we will discuss the best credit cards for cashback rewards in India for 2023. Whether you are looking for a simple flat-rate cashback card or a card with bonus categories, you will find one that matches your spending pattern.
Factors to Consider When Choosing a Cashback Credit Card
Here are some key factors to consider when picking the best cashback credit card for your spending habits:
Your frequent spending categories – Choose a card that offers maximum rewards on the categories where you spend the most every month. Focus on categories like groceries, gas, dining, travel, entertainment, online shopping, insurance payments, utility bills, etc.
Online vs offline spending – Some cards offer higher rewards for online purchases while others reward offline spending. Pick one aligned with your spending patterns.
Flat-rate vs tiered/bonus category rewards – Flat-rate cards offer uniform cashback on all purchases. Tiered cards give higher rewards for select categories. Evaluate your preferences.
Annual fees – Most cashback cards don’t charge annual fees. Avoid cards with high annual fees unless the earnings justify the costs.
Foreign transaction fees – If you transact internationally, pick a card with no foreign transaction fees to avoid markups on international purchases.
Welcome bonuses – Some cards offer lucrative sign-up bonuses in the form of cashback rewards upon meeting the minimum spend requirement within a specified period after getting the card.
Reward redemption process – Understand the redemption process for your cashback earnings, minimum redemption requirements, and flexibility of redemptions.
Additional benefits – Check for other benefits like travel insurance, concierge services, airport lounge access, discounts, that come with premium cards. These can add value.
The Best Cashback Credit Cards in India
Now that you know how to pick the right cashback card, let’s look at the top cashback credit cards in India this year:
Verdict: Decent rewards by day of week, good for planning weekend spending to maximize earnings.
Comparison of Best Cashback Credit Cards
Key Category Cashback
Amazon Pay ICICI Card
5% Amazon, 2% bills
No annual fee
Flipkart Axis Card
4% preferred partners
10% online shopping
Fuel surcharge waiver
IndusInd Iconia Card
10% dining, fuel, grocery
Balance transfer facility
AU Bank Signature Card
5% online shopping
No cap on cashback
Free Amazon Prime
StanChart Cashback Card
5% dept stores
IDFC FIRST Card
4% utility bills
HSBC Cashback Card
No cap on cashback
RBL Millennia Card
Dining & entertainment rewards
HSBC Visa Platinum
5% groceries, 4% fuel
International Air Miles
Citi Rewards Card
Redeem points for credit
How Cashback Credit Cards Work
Cashback credit cards offer a percentage of your spending back to you as cashback rewards. The cashback is credited to your account as a statement credit or reward points.
Most cashback cards offer between 1-5% cashback on purchases. The more you spend on the card, the more cashback you earn. Some cards offer a flat cashback rate on all purchases, while others offer bonus cashback rates on select spending categories.
For example, a card may offer 2% cashback on dining and entertainment, and 1% on other purchases. Cashback rewards can be redeemed as statement credits to offset your credit card bill or as gift cards or vouchers from reward catalogs.
Benefits of Cashback Credit Cards
Here are some of the benefits of using a cashback credit card for your spending:
Earn rewards on everyday purchases – Cashback cards allow you to earn rewards on necessities like groceries, fuel, bills, and more. This makes it easy to accumulate rewards passively.
Get statement credits – Most cashback rewards can be redeemed as statement credits to lower your credit card bill. This helps reduce your effective spending on purchases.
Bonus category rewards – Cards with bonus categories give higher rewards rates of up to 10% on spending in those categories. This maximizes your savings.
Promotional offers – Many cards offer periodic promotional cashback offers on brands, online portals, or payment methods. This further boosts your rewards earnings.
No annual fee – Most cashback cards in India do not have an annual fee, making earnings rewards lucrative.
Enhanced security and convenience – Credit cards come with protections against fraudulent transactions and improved dispute resolution processes. They also offer conveniences like instant discounts, no-cost EMI, lounge access, and more.
Minimum Spend and Annual Fee?
Most cashback credit cards in India do not have a minimum spend requirement to earn rewards, except for some premium travel cards. The rewards kick in from the first rupee spent on the card in valid categories.
Many cards also waive off the joining/annual fees upon a certain minimum spend within an initial period. Lifetime free cards are also available from several issuers. Evaluate fee structures and choose cards that fit your budget.
This covers our detailed analysis of the most rewarding cashback credit cards in India this year. We have suggested cards covering different categories, spending patterns, fees, and benefits.
Focus on picking the card that aligns with your top spending categories and monthly budgets. Use tools like credit card EMI and rewards redemption to lower effective cash spends. Manage your credit utilization wisely and pay bills on time to build a strong credit score.
So start enjoying automated savings on your daily expenses with the right cashback credit card today!
What is a cashback credit card?
A cashback credit card gives you a percentage of your spending back in the form of cash rewards or statement credits. The cashback you earn can be used to offset your credit card bill or redeemed for other rewards.
How is cashback earned on credit cards?
You earn cashback as a percentage on your credit card purchases. The cashback rate depends on the category – some common categories are dining, groceries, fuel, travel, online shopping, etc. Most cards offer 1-5% cashback on purchases.
Are there any charges for cashback credit cards?
Most cashback credit cards in India do not charge any annual or joining fees. Some premium cards may have annual fees that are usually waived on meeting an annual spending requirement.
Is there any minimum spend required to earn cashback?
No, most cards in India offer cashback rewards from the first rupee spent using the card. There is no minimum spend threshold. However, welcome bonuses may have a minimum spend requirement.
How can I redeem my cashback earnings?
Cashback rewards can be redeemed as statement credits to reduce your credit card outstanding. Many cards also allow redeeming rewards for online vouchers, gift cards, merchandise from reward catalogs.
Is there a limit on how much cashback I can earn?
Some cards cap monthly cashback earnings, while others offer unlimited cashback. Cards with bonus category rewards usually have monthly caps. Go for cards with no caps if you spend heavily.
Can cashback be earned on EMI transactions?
Most credit cards do not offer cashback rewards on EMI transactions and balance transfers. However, a few cards may provide cashback on select EMIs so check terms and conditions.
Which is better – cashback card or rewards card?
Cashback cards are better if you want direct discounts in the form of cash savings. Rewards cards are better if you want flexibility to redeem for flights, hotels, gifts etc. Pick based on your preferences.
Q. Is 5% cash back on credit card good?
Getting 5% cashback on a credit card is very lucrative. Most cashback credit cards offer 1-2% cashback on regular spends. A card with 5% cashback on specific categories like online shopping or grocery is among the best available. With a 5% cashback rate, you can earn higher rewards from your frequent spending categories. Always compare and pick a card that gives maximum cashback on where you spend the most.
Q. Who gives the best cashback?
Some of the credit cards offering the best cashback rates in India include the Amazon Pay ICICI Card (5% cashback on Amazon), Flipkart Axis Card (5% Flipkart cashback), HSBC Cashback Card (1.5% unlimited offline cashback), and AU Small Finance Bank Card (5% online shopping). Many cards also offer 10% cashback in limited periods on specific brands or payments. Choose a card aligned with your top spending categories.
Q. Which back credit card is good?
The best cashback credit card depends on your spending patterns. Good options for online shopping cashback include SBI SimplyCLICK, AU Small Finance Bank Card. For offline spends and bills, the HSBC Cashback Card is a good pick. Flipkart and Amazon cards are great if you frequently shop on those platforms. Also consider fuel and grocery cashback cards like ICICI HPCL Card and HSBC Visa Platinum if those are big expenses.
Q. Which is best cash back or rewards?
Cashback credit cards are the best if you want direct monetary savings in the form of statement credits or account credits to offset your future card expenses. Rewards credit cards are better if you value redeeming points for flights, hotels, and more redemption flexibility. Cashback cards offer guaranteed savings while rewards have variable redemption rates. Assess your preferences and spending categories.
Aravind Pai is a passionate blogger and content creator who has been writing extensively on technology topics since 2020, with a focus on Online shopping deals and product reviews. He graduated as a B.Tech 4 years ago and enjoys road trips and exploring latest gadgets.
Certain portions of the text in this article might have been created using AI tools and subsequently edited by the author to improve the overall quality and clarity of the content for readers.
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