There is a lot of offers on credit cards during the festive season: These 5 cards are offering the biggest discounts and cashback.

This festive season of Diwali and Dhanteras, there is a flood of offers from e-commerce platforms (Amazon Great Indian Festival, Flipkart Big Diwali Sale) to offline retail stores (Croma, Reliance Digital, Vijay Sales). Generally, most buyers make payment directly through UPI or debit card, due to which they can get only the sticker discount on the product. But smart shoppers can add 10% instant bank discount, unlimited cashback up to 5% and reward points by using the right credit card to make additional net savings of ₹5,000 to ₹25,000 on their purchases. If you too are planning to buy a smartphone, smart TV, laptop, fridge or home decor this festive season, then know which credit cards are offering the best deals and in which categories their use is most beneficial.

State Bank of India (SBI Card) credit cards are most in demand during the festive season.

• Major Offers: You can get 10% instant discount on cart value when you shop with SBI credit card in Amazon and Flipkart sales.

• Best on which products: Budget and mid-range smartphones (Redmi, Realme, OnePlus, Vivo), microwaves, washing machines, air purifiers and kitchen appliances ranging from ₹5,000 to ₹25,000.

• Mathematics of Savings: Typically a flat discount of ₹1,500 to ₹2,000 per card is immediately deducted from the bill at checkout. If you choose No-Cost EMI, there is an additional bonus discount.

If you are planning to buy premium electronics, laptops or flagship smartphones from Amazon, then this Lifetime Free (LTF) card proves to be the most powerful option.

• Major Offers: Amazon Prime members get flat 5% unlimited cashback (3% for Non-Prime) on the purchase of all eligible products. There is no upper limit for this cashback.

• Best on which products: Apple iPhone, MacBook, Sony/LG 65-inch OLED TV, mirrorless cameras and expensive laptops above ₹50,000.

• Mathematics of Savings: While a bank’s 10% instant discount on a laptop worth ₹80,000 gets stuck at a capping of ₹1,500, this card offers a net cashback of ₹4,000 directly into your Amazon Pay balance.

This co-branded card is the most reliable weapon for customers purchasing fashion and home goods from Flipkart and Myntra.

• Major Offers: Get flat 5% unlimited cashback on every transaction on Flipkart and Myntra. Apart from this, 10% instant discount on other core cards of Axis Bank is also live during the sale.

• Best on which products: Festive clothing, ethnic wear (Myntra), footwear, furniture, home furnishing and smartphones launching exclusively on Flipkart (like Nothing, Motorola etc.).

• Mathematics of Savings: A straight deduction of 5% on top of the sale price cut is credited to you in the next billing cycle, significantly reducing the overall spend.

If you shop from different websites (like Tata CliQ, Croma, Myntra, Nykaa, Reliance Digital) and don’t want to be tied to any one platform, then this card is best.

• Major Offers: Get flat 5% direct cashback on shopping at any online merchant without any brand restrictions.

• Capping and Limit: A maximum cashback of up to ₹5,000 per month can be earned on this card (i.e. full 5% benefit on monthly online spend up to ₹1,00,000).

• Best on which products: Across categories like Electronics, Beauty Products, Home Décor and Grocery where merchant-specific discounts are not available.

HDFC Bank’s Millenia Card is best suited for urban consumers who enjoy shopping as well as partying and dining during the festive season.

• Major Offers: 5% CashPoints back is available on Amazon, Flipkart, Myntra, Tata CLiQ as well as Swiggy, Zomato, BookMyShow and Uber.

• Best on which products: Apart from online shopping, festive dinners, ordering food from outside, movie tickets and travel booking.

• Mathematics of Savings: Accumulated CashPoints can be redeemed as cash directly in the statement balance in the ratio of 1:1.

It is important to follow some basic financial rules while availing credit card discounts, so that the joy of savings does not turn into a burden of debt later:

• Be sure to check the discount capping: Read the terms and conditions (T&C) of any 10% bank discount. Many times, even on purchases worth ₹50,000, the maximum limit of discount is only ₹1,500. In such a situation, it makes more sense to choose a card with uncapped 5% cashback.

• Processing Fee of No-Cost EMI: Many banks charge a processing fee ranging from ₹99 to ₹299 on no-cost EMIs plus 18% GST on top of that. Apart from this, the buyer has to pay GST on the interest portion of EMI himself.

• Credit Utilization Ratio (CUR): Avoid spending more than 30% of your total credit limit. If the limit is ₹1 lakh, using more than ₹30,000 may adversely affect your CIBIL score.

• Full bill payment on time: The real benefit of discount on credit cards is only if you pay the entire bill in one lump sum before the due date of the next month. Banks charge huge interest ranging from 36% to 42% per annum just for paying ‘minimum due’, due to which all the savings get wiped out in one go.