Want to save on everyday expenses? Here are the best cashback credit cards

If you want to save on everyday expenses, cashback credit cards come as a handy solution since every time you use your credit card, a percentage of the purchase will be returned to you in the form of cashback.  Some cards offer a flat-rate cashback across all the categories, whereas other cards offer a higher rate for specific purchases or categories. With the right credit card, you can earn money back on where you spend the most - whether that is for your grocery bills or online shopping.

Paisabazaar has curated a list of the  top cashback credit cards in India:

Flipkart Axis Bank Credit Card is one of the best co-branded credit cards in India and is best suited for people who are active users of Flipkart as it gives 5% cashback every time you shop on the given platforms. Besides, 4% cashback on other merchants like ClearTrip, PVR, Uber, and Cure.fit can also be availed. 

The card covers the three very popular categories – shopping, travel, and lifestyle. Similar cards like Amazon Pay offer great benefits on their own respective platforms and some partner merchants. Amazon Pay ICICI Credit Card offers the highest benefits for your purchases at Amazon. Amazon Prime members can avail 5% cashback on their transactions at Amazon, without any joining or annual fee. On the other hand, non-prime members can get 3% cashback on Amazon transactions. Apart from cashback, you can also get other privileges, like dining benefits, a fuel surcharge waiver and no cost EMI facility with this credit card. This is a decent option if you frequently shop online from Amazon and are looking for a card that offers benefits on online shopping.

Swiggy HDFC Bank Credit Card

Another hot favourite is the Swiggy HDFC Bank Credit card. It has a joining fee of Rs 500, which is waived off on an annual spend of Rs 2 lakh. Some of the card's key features include:

1. 10% cashback on Swiggy, including food ordering, Instamart, Dineout & Genie 
2. 5% cashback on online spending across partner merchants
3. 1% cash back on other spends
4. Complimentary 3 months Swiggy One Membership

The Swiggy card provides a higher cashback rate of 10% on food, grocery delivery, and dining out, as compared to the cashback that other cards, like the Amazon Pay ICICI credit card or the Flipkart-Axis credit card offer for shopping on their respective platforms. 

With the right credit card, individuals can save a considerable amount on their expenses through cashback, rewards, complimentary memberships, and free vouchers. To maximize these benefits, consumers should choose a card that is aligned with their spending preferences.

"For someone who wants to earn immediate value back on their expenses, a cashback credit card would be a wise choice. Co-branded cards, on the other hand, should be chosen based on loyalty to a particular brand. Therefore, it is important to compare the overall value back offered on different cards. Choose one that compliments your spending habits and offers greater flexibility as per your requirements," said Rohit Chhibbar, Head of Credit Cards Business, Paisabazaar.

As per BankBazaar, these cards provide the best deals across categories 

The Cashback SBI Card offers 5% cashback across all online transactions, irrespective of the merchant or platform you shop at.The maximum cashback limit (for the accelerated earning category) is Rs 5,000 in a billing cycle, which means online transactions up to Rs 1  Lakh per month will be eligible for the extra earnings. After you reach this monthly limit, 1% cashback will be given on all transactions.

With the HDFC Moneyback credit card, you can earn cashback as well as reward points on your transactions. The good thing is that you can convert your earned reward points into cashback, which is a rare feature and generally not available on basic credit cards.

HSBC Cashback Credit Card gives you 10% accelerated cashback on all dining, food delivery and grocery spends (capped up to Rs 1,000 per billing cycle). The annual membership fees of Rs 999 will be reversed if your total annual spend exceeds Rs 200,000.

The Axis Bank Ace Credit card gives you 5% cashback on bill payments and Google Pay recharges as well as 4% cashback on Swiggy, Zomato, and Ola. You get 2% cash back on all other expenses. You also get 1% fuel surcharge waiver at all fuel stations and up to 20% discount at 4000+ partner restaurants

Cashback cards provide direct savings on your purchases by offering a percentage of the amount spent back as cash rewards. It’s like getting a discount on every transaction. These cards allow you to earn rewards on specific categories where you spend the most, such as groceries, fuel, dining, or utility bills.

"This customization ensures you benefit from your regular expenses. Over time, the cashback accumulated from everyday spending can amount to substantial savings, offering a tangible financial advantage. Many cashback cards come with additional perks like airport lounge access, or discounts at partner merchants, enhancing their overall value beyond cashback," said Adhil Shetty, CEO of Bankbazaar.