In this Festive Seasons, all the major credit card providers or banks offers cash back schemes. You can easily saw a cash back offers on Smartphone ads on TVs, Board Hoardings etc.
But these day’s banks start giving cash back offers on Shopping, Dinning, Foods, and Entertainment. Utility Bills Payments, movie tickets etc.
Generally Banks offer Cashback of 5% to 10% range or Minimum Purchase amount. Some banks offer Cashback & reward point’s offers at same time on purchase.
Example: If you purchase some electronics products on credit card of worth Rs.35000 then you can simply get a 5% cashback and 1reward point for every Rs 100 spent.
It means you can easily save upto Rs.1750 & plus earn 350 reward points on purchase.
Note: Rewards points & cashback are differ from bank to bank & category to category
Benefits of Reward Points: you can redeem your Reward points with lifestyle benefits like gift vouchers, dining coupons, apparel vouchers etc. however, value of rewards points differ ex: 1500 reward points exchange with gift voucher of only upto Rs.500.
Benefits of Cashback: You get direct benefits and free up cash, unlike a rewards points
Before going in for any card, carry out a cost-benefit analysis basing it on your current expenditure and sign on the form only after you are sure.