The term cashback rings a magic bell perhaps among everybody. Therefore, cashback insurance policies are popular. Cashback credit cards are becoming popular too. The word cashback refers to cash being paid back to the account of the user periodically.
Some of the bigger banks that offer cashback credit cards are the State Bank of India, the country’s largest bank, the biggest private sector bank HDFC Bank as well as the second and third largest private sector lenders ICICI Bank and Axis Bank. let’s find out what they offer in a bit detail.
Major attraction of cashback credit card
The biggest USP of a cashback credit card is the fact that a significant share of money is ploughed back to the account of the holder of a cashback credit card. According to reports, the percentage of the money paid back can be even to the tune of 5% of the total amount spent by the holder through the card.
Who is entitled for cashback
There are certain types of expenditure, which when undertaken through these cards, earn higher cashback points for credit cards. The sort of expenditure that carry bigger potential to earn cashback are online shopping, eating in restaurants or ordering food through delivery apps, purchasing movie tickets etc.
Cashback card: when should you decide?
However, if this feature holds importance for you, you have to inform the issuing bank of your preference and an appropriate card will be recommended for you. The cashbacks feature in the monthly statements that the card issuer sends for the card holder.
Cashback rewards can also come in the form of cash. According to reports, some issuing company of credit cards do allow the card holder to use such cash rewards to book hotels and flights apart from making further purchases. However, experts advise users not to do it since using cashback card for travels and/or flight ticket bookings results in fast depletion of cash points.
