Reward Points

What are Reward Points?

Reward points are a loyalty currency that credit and debit card issuers provide as an incentive for using their card. Each time you make a qualifying purchase, you earn a certain number of points based on the card’s earn rate.

How Reward Points Work

Every card has a defined earn rate — the number of points you receive per unit of spending. For example:

• HDFC Regalia: 4 reward points per ₹150 spent
• Axis Magnus: 12 EDGE reward points per ₹200 spent
• SBI Elite: 2 reward points per ₹100 spent

The actual value depends on two factors: the earn rate and the redemption value per point.

Calculating the Value of Reward Points

Effective Return % = (Points earned per ₹100) × (Value per point in ₹) × 100

Example: HDFC Infinia earns 3.33 points per ₹150, which equals 2.22 points per ₹100. Each HDFC point is worth ₹0.50 at redemption.

2.22 × ₹0.50 = ₹1.11 per ₹100 = 1.11% base return

However, reward multipliers (like HDFC’s 10X programme) can push this to over 11%.

Reward Multiplier Programmes

Indian banks offer accelerated earning through shopping portals:

• HDFC SmartBuy: Up to 10X rewards
• Axis GrabDeals: Up to 10X rewards
• SBI SimplyCLICK: 5X on partner merchants
• ICICI iShop: Up to 5X rewards

These portals let you earn significantly more on specific merchants.

Redemption Options

Option	Typical Value	Notes
Flights/hotels via portal	Highest	Best use of points
Gift vouchers	Good	Wide merchant selection
Merchandise catalogue	Moderate	Often overpriced
Statement credit	Lowest	Convenient but poor value

Point Expiry

Different banks have different expiry policies:

• HDFC: Points valid for 2 years from earning date
• SBI: Points valid for 2 years
• Axis: EDGE points valid for 3 years
• ICICI: Points valid for 1 year
• Amex: Points do not expire as long as card is active

Always check your card’s expiry policy and redeem points before they lapse.