Zero-Cost EMI, Cashback, Or Rewards: Which Festive Offer Actually Saves You Money?
Smart use of credit cards can help you maximise benefits with zero-cost EMI, cashback and rewards this Diwali.
Diwali festivities begin with Dhanteras and span across five to seven days across different states, as per regional traditions. During the festive season, people flock to online stores and offline retailers to buy clothes, electronics, appliances, sweets, decorations and gifts.
Credit card companies roll out many offers around this time for consumers to save money while shopping for the festive season. These include cashback and reward points, as well as zero-cost EMIs.
Festive Offers From Top Credit Card Issuers
Zero-cost EMI: This lets you pay for your credit card purchases in equated monthly instalments without incurring any interest. But it’s important to note that even though the EMI is interest-free, the price of the product can be slightly higher to offset the waived interest. Additionally, certain banks also have processing charges, which can reduce the overall benefit.
Cashback: Cashback offers provide a percentage of your purchase amount back to your account. For instance, ICICI Bank’s Amazon Pay ICICI Credit Card offers 5% cashback for Amazon Prime members and 3% for non-Prime members on Amazon purchases. Such offers can lead to immediate savings.
Rewards points: Credit card issuers offer reward points on each purchase. These reward points can be used for discounts, vouchers, or even cashback. For instance, the SimplyCLICK SBI Card gives 10X reward points for online spends with partners like Myntra, Amazon and BookMyShow. Though these points are added over a period of time, they can be useful for regular shoppers.
Which Offer Helps To Maximise Your Benefits
The best offer would depend on your spending patterns and what you are buying.
Zero-cost EMI is the best option for big-ticket items such as electronics or appliances. It helps you to manage your budget without incurring upfront interest. But you must ensure that the processing charges are low in order to keep the cost-effectiveness intact.
Cashback rewards are good for day-to-day shopping, offering instant savings. They are particularly useful if you plan to shop across various categories and want instant returns.
Rewards points are ideal for frequent shoppers who can accumulate points over a period of time and exchange them for discounts or vouchers in the future. They are best for those who can plan their purchases and timing to maximise point accumulation.
Overall, though every offer has its advantages, the secret to saving money lies in knowing your spending patterns and selecting whatever aligns with your requirements. If you are spending on high-value items, you could go for a zero-cost EMI.
For everyday shopping, cashback offers provide immediate savings. If you are a frequent shopper, accumulating reward points can lead to discounts over time. But it’s important to read the terms and conditions of each offer carefully, as hidden charges or conditions can affect the overall savings.