Credit card rewards vs cashback: Which gives you more value?

Cashback credit cards give you a fixed percentage of your spending back as money. The cashback is usually credited directly to your card account, making it easy and transparent for users.

Rewards credit cards allow you to earn points for every rupee you spend. These points can be redeemed for vouchers, travel bookings, merchandise, or statement credits, and the value depends on how you use them.

Cashback cards can be suitable for those who want simple and assured savings. They can suit everyday purchases like groceries, fuel, and online shopping, where 1–5% cashback offers predictable value.

Rewards cards benefit frequent travellers and lifestyle spenders. Redeeming points for flights, hotels, or premium experiences often provides higher value than cashback, but it requires planning.

Cashback cards may have spending caps or category restrictions. Rewards cards can have complex redemption rules, varying point values, and expiry dates. Understanding these details is key to maximising benefits.