This is a perfect section for you if you are interested in enhancing your knowledge about Financial Matters. A few tips and tricks about Investing, Shares, Mutual Funds and Money Saving Schemes.
Get cash back and other discounts for usage
Make free money from your credit card
Reward points come with strings attached. Some issuers allow you to redeem points by shopping at designated retail outlets. Others let you buy a range of items or gift vouchers. Cashback cards give you good old fashioned cash. So, when you use your card for certain specified expenses, 2-5% of the amount spent is paid back to you by the credit card company. For instance, if you pay your hotel bill of Rs 50,000 with your credit card while on a business trip, you could get a credit of Rs 2,500 in your next statement.

Your card can also get you discounts for certain products and services. For instance, if you use your petro credit card to tank up your car, you will not only get cash back but there will be no 2.5% fuel surcharge on the billed amount. The HPCL Platinum Credit Card from ICICI Bank saves you 5% (including 2.5% surcharge waiver) on fuel purchase and also gives 5 points for every Rs 100 spent. The best part is that this cash given back to the cardholder is tax-free, because it is a discount that you get on the purchase and not an income.

Of course, there is a limit to the cash that can be earned this way. Also, there are many conditions that need to be satisfied for the cash-back offer to kick in. As the story on page 22 shows, some of them may not be so cost effective for the card holder.

Potential Gain: If you spend Rs 60,000 a year under certain heads, you can get up to 3% cashback.

You Get Rs 1,800 Free
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