Understanding Credit Card Rewards
Credit card rewards are one of the most attractive features of using a credit card. Understanding how these rewards work and choosing the right reward program can help you maximize the benefits from your everyday spending.
1. Types of Credit Card Rewards
Reward Points
Points earned on purchases that can be redeemed for various rewards including cashback, merchandise, travel bookings, or gift vouchers.
Cashback
Direct cash rewards credited back to your credit card account, usually calculated as a percentage of your spending.
Air Miles
Travel rewards that can be redeemed for flights, hotel stays, and other travel-related expenses.
2. How Rewards Work
Most credit cards in India offer between 0.25% to 5% value back on purchases. However, the actual reward rate depends on various factors such as spending category, card type, and ongoing promotions. Premium cards typically offer higher reward rates but come with annual fees. Some rewards may expire if not redeemed within a specific timeframe, usually 2-3 years from the date of earning.
3. Credit Card Rewards Comparison
HDFC Diners Club Black
Bank: HDFC Bank
Reward Rate: 10X rewards (3.3% value)
Annual Fee: ₹10,000
Key Benefits:
- 10X rewards on select merchants
- Airport lounge access worldwide
- Golf privileges
SimplySAVE Credit Card
Bank: HDFC Bank
Reward Rate: 5% cashback
Annual Fee: ₹499
Key Benefits:
- 5% cashback on groceries & movies
- 1% cashback on other spends
- Fuel surcharge waiver
Flipkart Axis Bank
Bank: Axis Bank
Reward Rate: 5% cashback
Annual Fee: ₹500
Key Benefits:
- 5% unlimited cashback on Flipkart
- 4% on preferred partners
- 1.5% on other spends
ICICI Amazon Pay
Bank: ICICI Bank
Reward Rate: 5% rewards
Annual Fee: ₹500
Key Benefits:
- 5% rewards on Amazon
- 2% on digital payments
- Welcome benefits worth ₹2,500
| Card Name | Bank | Reward Rate | Annual Fee | Key Benefits |
|---|---|---|---|---|
| HDFC Diners Club Black | HDFC Bank | 10X rewards (3.3% value) | ₹10,000 |
|
| SimplySAVE Credit Card | HDFC Bank | 5% cashback | ₹499 |
|
| Flipkart Axis Bank | Axis Bank | 5% cashback | ₹500 |
|
| ICICI Amazon Pay | ICICI Bank | 5% rewards | ₹500 |
|
Key Comparison Points:
- • Best Overall Rewards: HDFC Diners Club Black (10X rewards)Apply Now →
- • Best for Everyday Use: HDFC SimplySAVEApply Now →
- • Best for Online Shopping: Flipkart Axis Bank CardApply Now →
- • Best for Amazon Shopping: ICICI Amazon Pay CardApply Now →