Reward points vs cashback

[Santhosh]

Hi Team,

Reward points vs cashback which is good in same situation?

Like 5%cashback and 5% reward points
Both online spends

 

[panu24]

This depends on your requirement and what that card provider provides you for reward points.
I don't think there can be any general comparison made for cashback vs reward points.

 

[sudoabhi]

Hi Team,

Reward points vs cashback which is good in same situation?

Like 5%cashback and 5% reward points
Both online spends

You can't compare.
Still for your understanding, in layman terms:
5% cashback is 5rs cashback for every 100rs spent
5% reward points is 5 Reward Points for every 100Rs spent. And RP have different value for different banks, based on cards and the mode of redemption you choose for redeeming those points.

Like the post if you found it helpful.

 

[004archit]

If there value is equal then always Cashback is better

 

[Santhosh]

100 RS spend 5 reward points , 1 RP=1RS
100 RS spend 5% cashback
In both case sane amount but Reward points is better, Once you got some reward points like 3k or 5k you can use that in bulk.
But in cashback we do not have that control and we do not know how much cashback are coming in few months and how we used that.

 

[panu24]

Again your reply or thinking is with respect to some cards in your mind which you have not told here.

 

[Wealth is my birth right!]

Hi Team,

Reward points vs cashback which is good in same situation?

Like 5%cashback and 5% reward points
Both online spends

If for an ordinary card user cb best
If one is in hotel stays and airmiles then rewards

 

[Santhosh]

Again your reply or thinking is with respect to some cards in your mind which you have not told here.

SBI Cashback Card
HDFC Millenia Card

 

[HumorSimpson]

100 RS spend 5 reward points , 1 RP=1RS
100 RS spend 5% cashback
In both case sane amount but Reward points is better, Once you got some reward points like 3k or 5k you can use that in bulk.
But in cashback we do not have that control and we do not know how much cashback are coming in few months and how we used that.

First benchmark the value in INR for your scenario. Consider earn and burn thresholds. Hoarding points is always a mental trauma , you will never know when they get devalued.

Simple Cards Example
SBI CB vs. Tata Nue on groceries: let's say you are buying groceries on nue app, sbi cb gives you 5% cash and nue gives 5% rp. Here earning and burning is simple though. See the point value, if you spend 1000rs, sbi cb gives you 50 rs to your statement without any hassle. Tata Nue gives you 50rps. Next in another order if you are paying by nue for 1000rs, you will be paying 950 and will be getting 47.5 rps only. But the same would be 50rs in sbi cb. SO your point value is effectively 4.75% as compared to 5% sbi.

Premium Cards are little more complex . Do your math to understand.

 

[sudoabhi]

SBI Cashback Card
HDFC Millenia Card

Both are cashback cards -_-

 

[sourpai]

Cashback is any day better.... unless you know how to redeem reward points for more than 1Rs value, and it requires quite a bit of expertise and experience

 

[panu24]

SBI Cashback Card
HDFC Millenia Card

If compare these 2 cards then SBI cashback always better as we get direct cashback credit whereas for Millennia you need to take minor effort of converting reward points into cashback by paying redemption fee.

 

[Shin-Chan]

I will take both !!