Reward points to cash: 4 credit cards that offer cash redemption benefits

Credit card points, the rewards you earn every time you use your card for purchases, are one of the biggest advantages of having a credit card. These points make credit cards attractive. Users earn points every time they make a transaction, and they can later redeem them for many benefits such as shopping vouchers, travel discounts, gift cards, or even direct cash back or statement credit to reduce their bills.

Different cards have different earning rates and redemption options. Some cards offer you higher points for specific categories, and some have better cashback options. If used smartly, credit card points can help you save real money over the long run.

Credit card points to cash

Most people believe that credit card reward points are just for freebies and vouchers, but they can also be turned directly into cash. Many Indian card issuers offer direct cash upon converting reward points, along with using points as a statement credit.

Let’s take a look at some credit cards that let you convert reward points to cash and see the math behind it.

HDFC MoneyBack+ Credit Card

HDFC MoneyBack+ credit card offers CashPoints through which users can earn some cash back against their purchases. It offers these rewards:

• 20 CashPoints per ₹150 spent on Flipkart, Amazon, Swiggy, Reliance Smart SuperStore and BigBasket
• 2 CashPoints per ₹150 spent on other categories, including UPI spends

The redemption value on this card is: 1 cash point = ₹0.25. This means that if you have earned 100 cash points, you will get ₹25. You can redeem these points as cashback and statement credit, or other options, including flights and hotels. The card has a joining and annual fee of ₹500 each, as well as finance charges and late payment charges.

It offers many other benefits like a joining bonus, a renewal benefit, a milestone benefit (₹500 on spending at least ₹50,000 in a quarter), a fuel surcharge waiver, and discounts on partner restaurants via Swiggy Dineout. This card is a great choice for people who frequently shop on platforms like Flipkart and Amazon and prefer a low annual fee.

HDFC Millennia Credit Card

The benefits of this card are as follows:

5% cashback on everyday brands including Amazon, BookMyShow, Cult.fit, Flipkart, Myntra, Sony LIV, Swiggy, Tata CLiQ, Uber and Zomato (up to 1000 CashPoints per statement cycle).

1% cashback on other spends (up to 1000 CashPoints per statement cycle).

For redemption:

• 1 CashPoint = ₹1 if used as a statement credit.
• 1 CashPoint = ₹0.3 for flights, hotel bookings, airmiles, product catalogue, etc.

Example: If you spend ₹20,000 from your card on Amazon, you will earn 1,000 points, which can be used as ₹1,000 as a statement credit or ₹300 for others (flights, hotels, etc).

As a joining bonus, this card offers 1,000 cash points on the payment of the joining fee. Further, your annual fee would be waived if you spend at least ₹1 lakh in a year, which is easily achievable. It has other benefits as well, like a fuel surcharge waiver, discounts through Swiggy Dineout and milestone benefits (1 complimentary lounge access or a voucher worth ₹1,000 from the list of associated brands after spending ₹1 lakh in a quarter).

Cashback SBI Card

Cashback SBI Card is one of the most popular cards for cash rewards as it offers 5% cashback on all online spends. Its benefits:

• 5% cashback on all online transactions without any merchant restrictions.
• 1% cashback on all offline spends.

Redemption: Cashback is directly credited as a statement balance; no special conversion is required.

The card has an annual fee of ₹1,000, which can be waived if a user spends at least ₹2 lakh in a calendar year. Further, it offers a fuel surcharge waiver.

YES Bank Paisabazaar PaisaSave Credit Card

This credit card may be suitable for people who shop on e-commerce platforms frequently. Its benefits:

• 3% cashback: 6 cashback points per ₹200 (3 points/₹100) on e-commerce transactions on platforms including Amazon, Zomato, Blinkit, Myntra, Swiggy, Ola, Uber, Nykaa, Ajio, BookMyShow, Flipkart, etc.
• 1.5% cashback: 3 points per ₹200 on offline and UPI transactions (Cashback on RuPay transactions is applicable on a minimum spend value of ₹2,000).

Redemption: 1 cash point = ₹1 as a statement credit, which is automatically redeemable through YES Rewardz.

Example: If you spend ₹10,000 online, you will get 300 points and get ₹300 statement credit. This means your credit card bill will be lower by ₹300.

This card also has benefits like a renewal fee and fuel surcharge waivers.

There are many other credit cards like Axis Cashback Credit Card or specific cards like Amazon Pay ICICI Credit card and HDFC Regalia Gold Credit Card that offer points to cash as their key benefit. Make sure you check the terms and conditions of any card before applying for it and read the fine print to maximise your benefits.