Maximising the Benefits of Cashback Rewards Programmes

Maximising the Benefits of Cashback Rewards Programmes


Everyone loves credit cards and so do they love their cashback rewards! Cashback rewards are gaining popularity among the masses, as they enable cardholders to save money on every transaction made using a credit card. Cashback rewards are highly appealing due to their flexibility and simplicity. These rewards involve giving customers a percentage of the transaction amount, typically ranging from 1% to 5%.

Why Cashback Rewards Matter?

Cashback rewards appeal to cardholders due to various reasons. Here are the top factors that make a cashback reward popular and attractive:

  1. Simplicity : Cashback rewards are very simple to understand and offer transparency.
  2. No Expiry : These rewards, in most credit cards, do not come with an expiry date to redeem them, unlike the reward point system.
  3. Real Savings : Cashbacks are tangible; cardholders can see the amount earned on their transactions.
  4. Redemption Flexibility : Use of the cashback earned lies in the hands of the cardholder. It can be used for purchases, to offset the credit card bill, or as savings. 
  5. No Minimum Spending : There is no minimum spending required to earn the first cashback on most credit cards.

Strategically Planning Purchases

Cardholders need to plan their purchases to make the best use of the cashback rewards on their credit card. Here are a few tips to help maximise the cashback rewards:

  1. Every cardholder must select a card that aligns with their spending habits. They must know the cashback percentage offered in every category.
  2. Any high-value purchases like electronics or travel bookings must be timed to align with promotional events or when high cashback rates are offered on those categories.
  3. Use the credit card to make any recurring payments like utility bills.

Redeeming Cashback Rewards

Credit cards offer many options to redeem cashback rewards. Cardholders can choose the one that matches their preferences, their lifestyle, and financial goals. Here are a few common ways of redeeming cashback rewards:

  1. Statement Credits : This common method of cashback redemption means the cashback earned gets applied to the credit card balance directly. This reduces the credit card bill amount.
  2. Cheques or Direct Deposits : Another option is to have the cashback deposited directly into a savings account or delivered as a cheque.
  3. Reward Points: The third option is to convert the cashback into reward points, which can be utilised to purchase various items, obtain gift vouchers, or attain discounts on travel and other categories.

Check out Federal Bank’s exciting Reward Programme to low more about the rewards offered on their credit cards. 

Monitoring and Tracking Cashback Rewards

To maximise the benefits of a credit card issuer's rewards programme, it is important to actively monitor and track cashback rewards. Consider the following helpful tips:

  1. Review credit card statements regularly to track cashback earnings.
  2. Access the online account to get detailed information on cashback rewards earned.
  3. Make use of mobile apps to stay updated and track the rewards.
  4. Stay updated on any changes being made to the rewards programme.
  5. Get in touch with the customer support team in case of any queries or concerns.

Conclusion

By strategically timing their purchases, monitoring the cashback rewards, and familiarising themselves with the rewards programme and the redemption methods, cardholders can get more value from their credit cards. Federal Bank offers attractive Rewards on its wide range of credit cards. Visit the Federal Rewards page to know more.