1. Cashback is the easiest reward to value

Cashback is normally expressed directly in rupees or as a percentage of eligible spend and may be credited to the card account, bank account or another defined place. A 1% cashback rate is conceptually simple: ₹100 of value for every ₹10,000 of eligible spend before caps or exclusions.

Tip: Cashback is easy to compare because the reward is already expressed in money.

2. Reward points need a redemption value

If a card earns four points per ₹100, that does not tell you the reward rate until you know what each point is worth when redeemed. Points may have different values for vouchers, statement credit, travel or catalogue products. Some redemptions can also carry a fee.

Note: Points earned is not the same thing as value earned.

3. Miles can be powerful but less predictable

Miles or transferable travel points can be valuable for flights or hotels, but value depends on availability, route, taxes, transfer ratios and how you redeem them. A high theoretical value is useless if you never travel or cannot find award seats when needed.

Tip: Use the redemption value that matches how you realistically travel.

4. Compare rewards after caps and fees

The practical value is reward earned minus annual fee, redemption fee and any extra spending you would not otherwise make. A simpler cashback card can beat a complex points card if your redemption value is low or most spend falls into excluded categories.

Tip: The best reward is the one you can actually use at a good value.

5. Quick check

A card gives 5 reward points per ₹100. What else do you need before calling it a 5% reward rate?