Choosing the right cashback credit card in India can significantly reduce your monthly expenses while maximizing savings on everyday purchases like groceries, fuel, online shopping, and bill payments. With dozens of banks offering competitive rewards, comparing cashback credit cards helps you find the best option based on your spending habits, annual fees, and reward structure.
In this detailed guide, we compare the best cashback credit cards in India, explain how cashback works, and help you choose the right card to maximize rewards.
What Is a Cashback Credit Card?
A cashback credit card gives you a percentage of your spending back as cash rewards. Unlike reward points or travel miles, cashback is simple and flexible because it directly reduces your credit card bill or is credited to your account.
For example, if your card offers 5% cashback and you spend ₹10,000, you earn ₹500 back.
Cashback cards are ideal for people who want straightforward savings without complicated reward redemption rules.
Why Compare Cashback Credit Cards?
Not all cashback cards are equal. Some offer higher rewards on online shopping, while others focus on groceries, fuel, or utility bills.
Comparing helps you:
- Find higher cashback rates
- Avoid unnecessary annual fees
- Match rewards with your spending habits
- Maximize savings
- Choose cards with better welcome bonuses
Best Cashback Credit Cards in India (2026)
1. HDFC Millennia Credit Card
Best for online shoppers and millennials.
Cashback Benefits:
- 5% cashback on Amazon, Flipkart, Swiggy, and Zomato
- 1% cashback on all other spends
Fees:
₹1000 annual fee (waived on spending milestone)
Pros:
High cashback on popular platforms
Good welcome benefits
Easy fee waiver
Cons:
Cap on monthly cashback
2. SBI Cashback Credit Card
Best overall cashback card for online spending.
Cashback Benefits:
- 5% cashback on all online spends
- 1% cashback on offline spends
Fees:
₹999 annual fee
Pros:
Simple reward structure
High cashback rate
No merchant restrictions
Cons:
No cashback on wallet loads
3. ICICI Amazon Pay Credit Card
Best lifetime free cashback card.
Cashback Benefits:
- 5% cashback for Prime members on Amazon
- 2% cashback for non-Prime
- 1% on other spends
Fees:
Lifetime free
Pros:
No annual fee
Instant cashback credit
Good for frequent Amazon users
Cons:
Limited rewards outside Amazon ecosystem
4. Axis Bank Ace Credit Card
Best for utility bill payments.
Cashback Benefits:
- 5% cashback on bill payments via Google Pay
- 4% cashback on Swiggy and Zomato
- 2% cashback on other spends
Fees:
₹499 annual fee
Pros:
Great for monthly bills
Low annual fee
Good everyday rewards
Cons:
Limited cashback categories
5. Flipkart Axis Bank Credit Card
Best for frequent Flipkart shoppers.
Cashback Benefits:
- 5% cashback on Flipkart and Myntra
- 4% cashback on partner merchants
- 1.5% on other spends
Fees:
₹500 annual fee
Pros:
Strong e-commerce rewards
Fuel surcharge waiver
Dining discounts
Cons:
Rewards heavily tied to Flipkart ecosystem
Comparison Table
| Card | Best For | Cashback Rate | Annual Fee |
|---|---|---|---|
| HDFC Millennia | Online shopping | Up to 5% | ₹1000 |
| SBI Cashback | Online spending | 5% | ₹999 |
| ICICI Amazon Pay | Amazon users | 5% | Free |
| Axis Ace | Bill payments | 5% | ₹499 |
| Flipkart Axis | Flipkart users | 5% | ₹500 |
How Cashback Credit Cards Work
Cashback is usually calculated monthly based on eligible transactions. Some cards credit cashback directly to your statement, while others accumulate rewards that you can redeem later.
Most cards have:
- Cashback caps per month
- Excluded categories like rent or wallet loads
- Minimum redemption limits
Understanding these rules helps avoid disappointment and ensures you maximize benefits.
How to Choose the Best Cashback Credit Card
1. Analyze Your Spending
If you shop online frequently, choose cards with high e-commerce cashback. If you spend more on utilities, choose bill payment focused cards.
2. Check Annual Fees
Make sure cashback earned is higher than the annual fee.
3. Look for Cashback Caps
Some cards limit monthly cashback to ₹500–₹2000.
4. Check Redemption Method
Instant statement credit is more convenient than reward points.
5. Look for Welcome Bonuses
Many cards offer joining cashback worth ₹500–₹2000.
Tips to Maximize Cashback Rewards
Use your card for regular expenses like groceries, fuel, and utility bills to accumulate cashback faster.
Pay your credit card bill in full every month to avoid interest charges that cancel out rewards.
Track cashback categories and promotional offers regularly because banks often run limited-time bonus cashback deals.
Avoid cash withdrawals because they usually don’t earn rewards and have high fees.
Common Mistakes to Avoid
Applying for too many cards can lower your credit score due to multiple credit inquiries.
Ignoring spending caps may result in lower cashback than expected.
Not checking excluded categories like rent payments or wallet transfers.
Carrying a balance and paying interest can negate cashback savings.
Are Cashback Cards Better Than Rewards Cards?
Cashback cards are better for simplicity and everyday savings. Reward cards are better for travel benefits, premium perks, and lounge access.
If your goal is to reduce monthly expenses, cashback cards are usually the best option.
Who Should Get a Cashback Credit Card?
Cashback cards are ideal for salaried professionals, families, students with regular expenses, and anyone who prefers simple rewards instead of complicated point systems.
They are also good for beginners because they are easy to understand and use.
FAQs
Which cashback credit card is best in India?
SBI Cashback Credit Card is considered one of the best due to its flat 5% cashback on online spending.
Is cashback taxable in India?
No, cashback is treated as a discount, not income, so it is generally not taxable.
Do cashback cards have limits?
Yes, most cards have monthly or category cashback caps.
Can I have multiple cashback credit cards?
Yes, having multiple cards can help maximize rewards across different categories if managed responsibly.
Final Thoughts
Comparing cashback credit cards in India helps you unlock real savings on everyday spending. Whether you shop online frequently, pay regular utility bills, or want a simple rewards system, there is a cashback card designed for your needs.
The key is choosing a card aligned with your spending habits, keeping track of cashback caps, and paying your bills on time. With the right card, you can turn your daily expenses into meaningful savings every month.