Debit Card vs Credit Card vs UPI: Which One Saves You More This Diwali?

Diwali is around the corner, and that means homes getting decked up with lights, the aroma of sweets, and endless shopping lists. From buying gifts for your family and friends to finally getting that gadget you have been eyeing, the festive season has many reasons to splurge. However, spending without a plan can make a bigger dent than you had factored in. Hence, it's important to figure out which payment method will actually help you save the most this Diwali.

Let’s break down the pros and cons of debit cards, credit cards, and UPI:

Diwali is around the corner, and that means homes getting decked up with lights, the aroma of sweets, and endless shopping lists. From buying gifts for your family and friends to finally getting that gadget you have been eyeing, the festive season has many reasons to splurge. However, spending without a plan can make a bigger dent than you had factored in. Hence, it's important to figure out which payment method will actually help you save the most this Diwali.

Let’s break down the pros and cons of debit cards, credit cards, and UPI:

Debit cards deduct money directly from your bank account. They are ideal for staying within your budget and avoiding debt.

Pros:

No interest charges.

Help in budgeting by limiting spending to available funds.

Cons:

Limited rewards and cashback offers.

Usage has declined due to the rise of UPI payments.

Debit cards are best for everyday purchases and maintaining financial discipline.

Credit cards allow you to borrow money up to a certain limit, which you repay later. Many cards offer rewards, cashback, and discounts, especially during festive seasons.

Pros:

Up to 10% cashback on platforms like Amazon and Flipkart.

Reward points on various purchases.

EMI options for high-value items.

Partner deals with brands like Myntra, Zomato, and PVR.

Cons:

Interest charges if bills aren't paid on time.

Potential for overspending and accumulating debt.

Credit cards are best for big-ticket items like electronics, appliances, or gifts, especially when taking advantage of festive offers.

UPI (Unified Payments Interface) allows instant bank-to-bank transfers using your smartphone. It is widely accepted for both online and offline transactions.

Pros:

Instant transactions with no interest charges.

Widely accepted across merchants.

Some apps offer cashback and rewards.

Cons:

Rewards are generally less than those offered by credit cards.

Not all transactions may qualify for cashback.

UPI is best for daily expenses, bill payments, and small to medium purchases.

• Best for rewards: Credit cards, with up to 10% cashback and reward points.

• Best for budgeting: Debit cards, as they limit spending to available funds.

• Best for convenience: UPI, for quick and easy payments without interest charges. 

Diwali 2025 has brought plenty of offers on credit cards, debit cards, and UPI:

• Credit Cards: Banks like SBI, HDFC, and Kotak are giving up to 10% cashback, instant discounts, and 0% EMI on electronics and appliances. These are best for big purchases to earn rewards.

• Debit Cards: SBI, Axis, RBL, and others offer up to 10% instant discount on e-commerce platforms. Debit cards are good for everyday spending and staying within budget.

• UPI Payments: BHIM, Kiwi, and other UPI apps offer cashback and festive deals. Some apps link UPI with credit cards to give both convenience and rewards, making it ideal for quick, small, or medium payments.