What are reward points on credit cards?

Reward points are loyalty points you earn on eligible transactions. You can redeem them for flights, vouchers, merchandise, statement credit, or transfer to airline/partner programs.

Which credit card gives the best reward points in India?

The best card depends on your spending pattern. Premium cards like Axis Magnus or ICICI Sapphiro give high points for travel/dining, while cards like SBI PRIME or HDFC Regalia Gold perform well for everyday spends.

How do I calculate the value of reward points?

Point value varies by issuer and redemption option (typically ₹0.25–₹1 per point). Check the card’s redemption catalogue—some redemptions such as flight bookings or vouchers provide higher effective value.

Do reward points expire?

Yes. Most banks set expiry periods (12–36 months). Always check the card’s terms and conditions and plan redemptions before points lapse.

Are reward points taxable?

Generally, reward points redeemed for personal use are not taxable. However, tax rules can change, so consult a tax advisor for large redemptions or business-related use.

How can I maximize credit card reward points?

Use the card for categories with higher point rates, achieve milestone spends, combine with bank offers and cashback portals, and redeem points for high-value options like partner transfers or vouchers.

Is it worth paying an annual fee for a rewards card?

It can be—if the annual benefits (points earned, vouchers, lounge access) exceed the fee. Estimate your annual spend and expected rewards to decide.

Can I transfer reward points to airline partners?

Many cards allow point transfers to partner frequent-flyer programs. Transfer values and ratios vary—check the bank’s partner list and transfer rates before transferring.

What happens to points if I close my credit card?

Points are typically forfeited on account closure unless transferred or redeemed before closing. Some issuers may allow point transfers within family programs—confirm with the bank.

How do reward points differ from cashback?

Reward points are redeemed for vouchers, merchandise, or transferred to partners; cashback directly reduces your statement balance or is credited to your account. Cashback is simpler, while points can deliver higher value if redeemed strategically.

Top Reward Points Credit Cards in India 2025

Top Reward Points Credit Cards in India 2025 – Maximize Your Spending Benefits

Reward points credit cards allow you to earn points on every transaction, which can be redeemed for flights, shopping vouchers, cashback, or merchandise. In 2025, banks are offering even better reward programs, and choosing the right card can help you save thousands every year.

1. HDFC Regalia Gold Credit Card

Annual Fee: ₹2,500 + GST (waived on ₹3L spend)
Reward Rate: 4 Reward Points per ₹150 spent
Welcome Benefit: Complimentary airport lounge access, travel vouchers worth ₹2,500
Best For: Travel, dining, and lifestyle spends

2. SBI Card PRIME

Annual Fee: ₹2,999 + GST
Reward Rate: 5 Reward Points per ₹100 on dining, groceries, departmental stores
Welcome Gift: ₹3,000 worth of vouchers
Best For: Grocery and daily lifestyle expenses

3. Axis Bank Magnus Credit Card

Annual Fee: ₹10,000 + GST
Reward Rate: 12 Reward Points per ₹200 spent on travel & dining
Welcome Perk: Tata CLiQ vouchers worth ₹10,000
Best For: Premium travelers & high spenders

4. ICICI Bank Sapphiro Credit Card

Annual Fee: ₹6,500 + GST
Reward Rate: 4 Reward Points per ₹100 spent
Special Benefit: Complimentary domestic & international lounge access
Best For: International travelers

5. American Express Membership Rewards Credit Card

Annual Fee: ₹1,500 + GST (1st year), ₹4,500 (2nd year onwards)
Reward Rate: Upto 1,000 points/month on milestone spends
Best For: Flexible rewards redemption

6. HSBC Smart Value Credit Card

Annual Fee: Nil (First Year)
Reward Rate: 3x rewards on online, dining, and telecom payments
Best For: Beginners

7. Kotak Mahindra Royale Signature Credit Card

Annual Fee: ₹999 + GST
Reward Rate: 4 Reward Points per ₹150 spent
Best For: Dining and travel

Comparison Table – Reward Points Credit Cards 2025

Credit Card	Annual Fee	Reward Rate	Best For
HDFC Regalia Gold	₹2,500	4 pts/₹150	Travel, Dining
SBI PRIME	₹2,999	5 pts/₹100	Grocery, Lifestyle
Axis Magnus	₹10,000	12 pts/₹200	Premium Travel
ICICI Sapphiro	₹6,500	4 pts/₹100	International Travel
Amex MRCC	₹1,500	1,000 pts milestone	Flexible Rewards
HSBC Smart Value	Nil	3x on select spends	Beginners
Kotak Royale	₹999	4 pts/₹150	Dining, Travel

Case Study – How Rewards Add Up

Example: If you spend ₹25,000/month on a mix of travel, dining, groceries, and online shopping using HDFC Regalia Gold:

Monthly Reward Points: ~667 points
Annual Points: ~8,000 points
Value (₹0.50/point): ₹4,000/year savings + Lounge Access + Vouchers

Tips to Maximize Credit Card Rewards

Choose a card aligned with your spending habits.
Redeem points before expiry.
Use milestone benefits for higher value.
Combine with bank offers & cashback apps.

Conclusion

Reward points credit cards are an excellent way to earn extra benefits on your everyday spends. In 2025, pick a card based on your lifestyle—whether it’s travel, shopping, or dining—and you can easily earn back more than your annual fee in rewards.