Top Cashback Credit Cards in India 2024

Are you looking to get the most out of your credit card spending? Cashback credit cards are an excellent way to earn money back on your everyday purchases. With so many options available in India, it can be challenging to choose the best cashback credit card for your needs. In this article, we’ll explore the top cashback credit cards in India for 2024, helping you make an informed decision and maximise your rewards.

Understanding Cashback Credit Cards

What are Cashback Credit Cards?

Cashback credit cards are a type of rewards credit card that offer a percentage of your spending back in the form of cash. Unlike points or miles, cashback is a straightforward way to earn money on your purchases. Typically, cashback credit cards offer a fixed percentage of cashback on all purchases, while some may provide higher cashback rates for specific categories like groceries, fuel, or dining.

How do Cashback Credit Cards Work?

When you make a purchase using your cashback credit card, a percentage of the transaction amount is credited back to your account. For example, if your card offers 2% cashback and you spend ₹10,000, you’ll receive ₹200 as cashback. This cashback can be redeemed in various ways, such as statement credits, direct deposits, or even gift cards.

Benefits of Using Cashback Credit Cards

• Earn money back on your everyday spending

• Simple and straightforward reward structure

• Flexibility in redeeming cashback

• No need to worry about point or mile conversions

• Potential to save hundreds or even thousands of rupees annually

Choosing the Right Cashback Credit Card

Consider Your Spending Habits

To maximize your cashback earnings, choose a card that aligns with your spending patterns. For instance, if you spend a significant amount on fuel, look for a card that offers higher cashback on fuel purchases. Similarly, if you frequently dine out or shop for groceries, consider cards with higher rewards in those categories.

Compare Cashback Rates and Categories

Cashback credit cards offer varying cashback rates and categories. Some may provide a flat cashback rate on all purchases, while others have tiered structures with higher rewards for specific categories. Evaluate your options based on your spending habits to find the card that offers the best returns for you.

Example scenario: Anita spends ₹30,000 monthly on her credit card, with ₹10,000 on groceries, ₹5,000 on fuel, and ₹15,000 on other expenses. A card offering a flat 1.5% cashback would earn her ₹450 monthly (₹5,400 annually). However, if she opts for a card with up to 5% cashback on groceries, up to 4% on fuel, and 1% on other purchases, her monthly earnings would be ₹725 (₹8,700 annually).

Read the Fine Print

Before applying for a cashback credit card, thoroughly review the terms and conditions. Look for any caps on cashback earnings, minimum spending requirements, or expiry dates for the cashback earned. Keep credit card fees such as annual charges, interest rates, and other applicable fees in mind when calculating your net rewards.

Top Cashback Credit Cards in India 2024

1. HDFC Bank PayBack Credit Card
Up to 5% cashback on grocery shopping
Up to 1% cashback on all other purchases
Cashback credited monthly
No upper limit on cashback earnings
Attractive welcome and milestone benefits

2. American Express SmartEarn Credit Card
Accelerated cashback of 5% on major fuel brands, telecom expenses, and utilities
1.25% cashback on all other purchases
Cashback earned as reward points, redeemable for statement credit
Additional benefits like travel and dining privileges

3. Axis Bank ACE Credit Card
Up to 5% cashback on grocery spends
Up to 4% cashback on fuel transactions
1% cashback on all other expenditures
Flexible reward redemption options
Complimentary e-vouchers and annual fee reversals

4. SBI SimplyCLICK Credit Card
1.25% cashback on online purchases
Up to 5% cashback on specific partner merchants
0.25% cashback on offline spends
No upper limit on cashback earnings
Exclusive discounts and offers on online shopping

Maximising Your Cashback Earnings

Use Your Card for All Eligible Purchases

To maximise your cashback earnings, use your cashback credit card for all eligible purchases. This includes everyday expenses like groceries, fuel, dining, and utility bills. However, be cautious not to overspend just to earn more cashback. Stick to your budget and use your credit card responsibly.

Pay Your Bills on Time and in Full

To avoid interest charges and late payment fees that can negate your cashback earnings, always pay your credit card bills on time and in full. Set up automatic payments or reminders to ensure you don’t miss a due date. This will help you maintain a good credit score and enjoy the full benefits of your cashback credit card.

Example calculation: Let’s say you have a cashback credit card with a 2% cashback rate. You spend an average of ₹20,000 per month on your card. By the end of the year, you would have earned ₹4,800 in cashback (2% of ₹20,000 x 12 months). However, if you only make the minimum payment each month and accumulate interest charges at an 18% annual percentage rate (APR), you would end up paying ₹3,600 in interest over the year (18% of ₹20,000). In this scenario, your net gain from cashback would be significantly reduced to just ₹1,200 (₹4,800 – ₹3,600).

Redeem Your Cashback Wisely

Cashback credit cards offer various redemption options, such as statement credits, direct bank account deposits, or gift cards. Choose the redemption method that provides the most value for you. If you’re saving for a specific goal, consider accumulating your cashback over time and redeeming it in a lump sum.

Combine With Other Reward Programs

To further boost your earnings, consider combining your cashback credit card with other reward programs like loyalty points or mile-earning credit cards. This strategy can help you diversify your rewards and enjoy even more benefits on your spending.

Conclusion:

Cashback credit cards are a fantastic way to earn money back on your everyday purchases. By choosing the right card for your spending habits and using it responsibly, you can maximize your cashback earnings and save hundreds or even thousands of rupees each year. As we’ve explored the top cashback credit cards in India for 2024, consider your individual needs and preferences when making your decision. Remember to pay your bills on time, redeem your cashback wisely, and combine with other reward programs to get the most value from your cashback credit card. Airtel Finance offers some excellent resources, like credit score checks and informative articles, to help you make informed choices about credit cards. To learn more, visit the Airtel Thanks App‘s credit card section and explore their offerings today.

FAQs:

1. Which credit card has 5% cash back on gas?
The Axis Bank ACE Credit Card offers up to 4% cashback on fuel transactions, one of the highest rates in the market for this category.

2. Which credit card offers more cashback?
The best cashback credit card for you depends on your spending habits. Cards like the HDFC Bank PayBack Credit Card and American Express SmartEarn Credit Card offer high cashback rates in specific categories.

3. How to choose the right cashback credit card?
To choose the right cashback credit card, consider your spending patterns, compare cashback rates and categories, and read the fine print for any caps, fees, or restrictions.

4. How do I apply for a cashback credit card online?
You can apply for a cashback credit card online through the issuer’s website or by visiting the Airtel Thanks App. Ensure you meet the eligibility criteria and have the necessary documents ready.

5. Should I get a cashback credit card if I already have a rewards credit card?
Having both a cashback and rewards credit card can help you diversify your earnings. Use the cashback card for categories where you earn more, and the rewards card for other purchases to maximize your overall returns.