What are credit card reward points?

Credit card reward points are loyalty points earned every time you spend with your card. They can be redeemed for vouchers, travel bookings, merchandise, or even cashback, depending on the bank’s rewards program.

How do I choose the best rewards credit card for me?

Look at your spending habits. If you spend on travel, choose a card offering air miles. If you shop online, select one with accelerated points on e-commerce. Always compare redemption flexibility and annual fees.

What is the value of a reward point in India?

The value of a reward point varies by issuer, usually between ₹0.20 and ₹1. Premium cards and travel redemptions often provide the highest value. Always check your card’s rewards catalogue.

Are credit card reward points taxable in India?

Generally, reward points are not treated as taxable income under Indian law. However, any gifts or vouchers received may have separate tax implications. Consult a tax advisor for clarity.

What types of rewards do banks usually offer?

Rewards can include points on purchases, cashback, air miles, welcome bonuses, and milestone benefits. Some cards also offer partner discounts or exclusive lifestyle privileges.

Can I redeem my reward points for cashback?

Yes, many banks let you convert points into cashback credited to your statement. However, the conversion rate is usually lower compared to vouchers or travel bookings.

Do reward points expire?

Yes, most reward points expire after 1–5 years, depending on the bank. Some premium cards offer “no expiry” as long as your account remains active.

What are accelerated reward points?

Accelerated points are bonus points earned on specific categories like dining, fuel, or online shopping. For example, you may get 5 points per ₹100 spent instead of the usual 1 point.

Do rewards credit cards have an annual fee?

Many do, ranging from ₹500 to ₹10,000 depending on benefits. Some issuers waive the fee if you meet an annual spending target.

How long does it take for points to be credited?

Points are usually credited within a few business days of your transaction posting. Bonus or milestone points may appear only after your monthly statement is generated.