Credit Card Reviews

3 Best Cash Back Credit Cards In India

Getting Cash Back Is Easy With These Cards

Credit card services have undergone a phenomenal growth in recent times. Banks are now competing with each other with lucrative offers, such as rewards, cash back offers and other benefits.  Banks aim at making customers spend more.

But users should be careful with their credit card spending. They should keep within the predefined limits.  Cash back credit card offers have been quite popular with users. These are promotional features valid for limited time span provided on a periodical basis by all the credit card services.

How you get cash back on your credit card?

When you pay via credit card, merchants pay a particular percentage of the money as commission to the bank or the merchant service provider. This commission is shared by the credit card companies with the credit card holder by way of air miles, monetary amount and reward points. Cash back offer is where the card holder is rewarded with a monetary amount for the card usage.

When are you eligible for cash back?

The cash back feature is applicable to nearly all types of purchases and expenditures including dining out, shopping, bill payments and balance transfers.  About 0.5 to 2 percent of expenditure is usually returned as separate payment (such as by cheque) or to the account of the credit card holder. Sometimes customers may even get 10 percent cash back, if their credit history is very good.

Here are 3 best credit cards in India with good cash back offers

1. Citibank Cash Credit card

citibank-cashback-credit-cardThe Cash Back Card from Citi offers plenty of rewards and redemption features. You can get up to 30 percent cash back from the card from certain select outlets along with 2.5 percent cash advance fee for a month.  The main features include:

Interest rate: 3.19 percent /month; 38.28 percent annually

Fuel surcharge: 2.5 percent surcharge waiver on Indian Oil outlets only

Cash advance: 2.5% (With Rs.250 as minimum amount)

Card issuer: VISA

Bank: Citi Bank

Joining fee: No fee for joining or renewal

Apply For The Citibank Cash Back Card

2. ABN AMRO Credit Card (Titanium One)

This card offers nearly 2 percent maximum cash back offer. Cardholders have to pay a renewal fee of Rs.2000. For utility bill payments, users get up to 5 percent maximum cash back offer. The cash back offers are applicable to international spends too. The cash back is not restricted to any particular purchase, so you get the offer for all expenditures made on the card. Important features include:

Interest rate: 3.5 percent /month

Fuel surcharge: Zero percent surcharge on all outlets

Cash advance: 2.5% (With Rs.300 as minimum amount)

Card issuer: MasterCard

Bank: ABN Amro

Joining fee: Rs. 500

3. HSBC Platinum Credit Card

HSBC offers 10 percent maximum cash back offer on all travel bookings and other spends for the initial 90 days of the card issuance. This is applicable to expenditure of a minimum of Rs. 10,000 and a cash back offer of maximum Rs. 3000. This offeris valid from 2016 January to June 2016. The cash back offers are valid, only if cardholder makes 3 transactions or more in a month. Cardholders should pay a renewal fee of Rs. 2000, and this has balance transfer feature. The credit limit is high on this card.

Interest rate: 3.1 percent /month

Fuel surcharge: Zero percent surcharge on all outlets

Cash advance: 2.5% (With Rs.250 as minimum amount)

Card issuer: VISA

Bank: HSBC

Joining fee: No joining and annual fees

Credit card companies offer a wide range of cards with various benefits to suit the lifestyle and financial status of customers. Some credit cards may offer high rewards, but take up a big chunk of money via annual charges, which often neutralize your benefits or make you spend more than the rewards. When you choose the right card, based on features such as joining fee, annual fee, grace period and interest rates, you will be able to save money on your purchases.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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