Cash back credit cards are a popular choice for many people who want to be rewarded for their everyday spending. Unlike travel rewards cards that offer points for flights and hotels, cash back cards give you cold, hard cash back on your purchases. This can be a great way to offset the cost of your groceries, gas, or other regular expenses.
Here are some of the top 5 cashback credit cards in India for different spending habits:
1. Axis Bank Ace Credit Card (Best for All-around Cashback)
Joining Fee: Rs. 500 + GST
Annual Fee: Rs. 999 + GST after the first year (waived off on spending Rs. 1.2 lakhs in a year)
Eligibility: Minimum net income of Rs. 18,000 per month
Benefits:
- 1.5% flat cashback on all purchases
- Up to 5% cashback on bill payments, DTH, and mobile recharges done via Google Pay
- 4% cashback on specific merchants like Swiggy, Zomato & Ola
- No upper limit on the maximum cashback that can be earned
Read More: Axis Ace Credit Card
2. Cashback SBI Credit Card (Best for Online Shoppers)
Joining Fee: Nil
Annual Fee: Rs. 999 + GST (waived off on spending Rs. 2 lakhs in a year)
Eligibility: Minimum net income of Rs. 25,000 per month
Benefits:
- 5% cashback on online spends without any merchant restriction
- 1% cashback on offline spends
- Joining Fee: Rs. 999 + GST
3. HDFC Bank Millennia Credit Card (Best for Multiple Category Spenders)
Joining Fee: Varies depending on the variant of the card
Annual Fee: Varies depending on the variant of the card
Eligibility: Minimum net income of Rs. 18,000 per month
Benefits:
- 5% cashback on Amazon, Flipkart, Myntra, Swiggy, Zomato, Uber etc.
- 1% cashback on all other online and offline transactions
- Additional benefits like lounge access and discounts on partner merchants
4. Amazon Pay ICICI Bank Credit Card (Best for Amazon Shoppers)
Joining Fee: Nil
Annual Fee: Rs. 175 (waived off on spending Rs. 1 lakh in a year)
Eligibility: Minimum net income of Rs. 18,000 per month
Benefits:
- 5% cashback on all Amazon purchases
- 2% cashback on all other online and offline transactions
- Additional benefits like Amazon Prime membership and free movie rentals
5. Flipkart Axis Bank Credit Card (Best for Flipkart Shoppers)
Joining Fee: Rs. 500 + GST
Annual Fee: Rs. 499 + GST
Eligibility: Minimum net income of Rs. 18,000 per month
Benefits:
- 5% cashback on every Flipkart purchase
- 4% cashback on other merchants like ClearTrip, PVR, Uber, Swiggy and Cult.fit
Important Note: These are just a few of the many cashback credit cards available in India. It is important to compare the different cards and choose the one that best suits your spending habits and eligibility criteria. Be sure to factor in the annual fees, joining fees, and other charges when making your decision.
Here are some additional tips for choosing a cashback credit card in India:
- Consider your spending habits: Choose a card that offers the highest cashback on the categories you spend the most on.
- Look at the annual fees and joining fees: Make sure the cashback you earn outweighs the annual fees.
- Read the fine print: Understand the terms and conditions of the card before you apply.
- Consider your credit score: You will need a good credit score to qualify for the best cashback credit cards.
How Cash Back Credit Cards Work
There are two main ways cash back credit cards work:
- Flat Rate Cash Back: This type of card offers a straight percentage of cash back on all your purchases. For example, a card with a 1.5% flat rate cash back would give you ₹1.50 for every ₹100 you spend.
- Cash Back in Categories: These cards offer higher cash back percentages on specific spending categories, such as groceries, gas, or travel. The cash back rate for other purchases might be lower or even flat.
Benefits of Cash Back Credit Cards
- Simple to Understand: Cash back is easy to understand. You earn a percentage of your spending back in cash, which can be redeemed as a statement credit, direct deposit, or even a check.
- Flexibility: Cash back can be used for anything you want, unlike travel points that are restricted to travel redemptions.
- No Foreign Transaction Fees: Some cash back cards don’t charge foreign transaction fees, which can be a perk for travelers.
Things to Consider Before Getting a Cash Back Credit Card
- Annual Fees: Some cash back cards have annual fees, which can eat into your rewards if you don’t spend enough.
- Cash Back Rates: Compare the cash back rates offered by different cards to see which one will give you the most rewards for your spending habits.
- Cash Back Redemption: Find out how you can redeem your cash back and if there are any minimum redemption amounts.
Finding the Right Cash Back Credit Card
The best cash back credit card for you will depend on your individual spending habits. Consider the categories where you spend the most and look for a card that offers high cash back rates in those categories. Also, be sure to factor in any annual fees and redemption requirements before making a decision.
Using Cash Back Credit Cards Responsibly
Cash back credit cards can be a great way to save money, but it’s important to use them responsibly. Here are a few tips:
- Pay Your Balance in Full Each Month: Cash back rewards are essentially meaningless if you’re paying interest on your balance.
- Don’t Overspend: It’s easy to get caught up in the rewards game and spend more than you can afford.
- Track Your Rewards: Keep track of your cash back earnings to see how much you’re saving.
By following these tips, you can use cash back credit cards to your advantage and earn rewards for your everyday spending.
Author: Sky Smith
Sky is a personal finance enthusiast and blogger passionate about helping readers navigate the world of loans and credit cards. With a focus on clear explanations and actionable tips, Sky's blog empowers individuals to make informed financial decisions.
