Cashback vs points vs miles

Three species, in order of simplicity

Cashback

Money back, no drama. A percentage of your spend returns as a statement credit or a direct credit.

• Value is fixed. 1% means 1%.
• No redemption skill required, and usually no redemption fee.
• Best for beginners, and honestly for most people permanently.

Points

Earned per ₹100–150 of spend, redeemed from a catalogue or against statement balance.

• Value varies wildly — roughly ₹0.20 to ₹1 per point depending on the redemption route (indicative, as of 2026).
• Catalogue redemptions are usually the worst value; statement credit or specific transfer partners are usually better.
• Some issuers charge a redemption fee per transaction.

Miles

Points that convert into airline or hotel programmes.

• Highest potential value per unit — but only realised through specific redemptions, on specific routes, at specific times.
• Requires you to fly regularly and to enjoy the optimisation game.
• If you would not otherwise take that flight, the "value" is a purchase, not a saving.

The only comparison that matters

Work it out on your spending pattern, not a hypothetical one. A card that rewards dining heavily is worth little to someone who mostly buys groceries and fuel.

A worked comparison

Two cards, one household spending ₹30,000 a month:

Illustrative structures, not specific products — CardSamajh names no cards. The point is the shape of the comparison: fixed-and-boring often beats variable-and-exciting once you account for redemption reality.

Three traps in reward maths

1. Expiry. Many programmes expire points after two to three years, or when the card closes.
2. Devaluation. Programmes change conversion rates unilaterally. Points are not a savings account.
3. The nudge. A reward you would not otherwise buy is spending, not saving. The 10% off on a thing you did not need costs 90%.

Next: why "5%" almost never means 5%.