If you’re looking to squeeze maximum value out of regular spending — groceries, bills, online shopping, food delivery, rides — a good cashback credit card can significantly reduce your costs over the year. What “best” means however depends heavily on how and where you spend. Below, I walk you through what makes a cashback card worthwhile, then deepdive into some of the top-performing cards available in India in 2025, and finally share a simple approach to choose the one(s) that fit you best.
What Makes a Good Cashback Credit Card for Everyday Spending
When evaluating cashback cards, these are the traits to prioritize:
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High and relevant cashback rate: Some cards offer elevated percentages (4–10%) for certain categories — online shopping, food delivery, utility bills, etc. — while others offer a flat (but lower) cashback on all spends. The right choice depends on your spending mix.
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Low or waivable fees: Annual or joining fees can offset the benefit unless the card’s rewards justify it. Cards that waive fees if you spend a certain amount annually give you flexibility.
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Broad merchant acceptance and reward categories: The more everyday uses the card supports — groceries, online shopping, utility bills, food delivery, rides — the more useful it becomes.
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Simplicity and clarity: Cashback should be easy to understand and redeem — flat rates or clear category bonuses are better than complicated reward structures.
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Flexibility: Not everyone’s spending is predictable. A card that gives modest but uncapped cashback on all spends offers flexibility if your spending habits vary.
Top Cashback Credit Cards in India (2025) for Everyday Spending
Here are some of the best-performing cards suited to different spending patterns.
HDFC Millennia Credit Card
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Ideal for: Frequent online shoppers, ecommerce regulars, millennials.
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Cashback Structure: ~5% on major online platforms (Amazon, Flipkart, Myntra, etc.), 1% on other spends.
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Fees: 1,000 + GST annually (often waived if annual spend crosses threshold, e.g. ~1 lakh).
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Why it stands out: High cashback on ecommerce, with often-negotiable fee waiver — good for people who mostly shop online and make many small/medium purchases.
SBI Cashback Credit Card
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Ideal for: People who want a simple cashback card for a mix of online and offline spends, without complicated category tracking.
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Cashback Structure: 5% on online transactions (shopping, bill payments, OTT, etc.), 1% on offline/spending outside online.
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Fees: ~999 annually (often waived on annual spends above 2lakh).
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Why it stands out: Flat, easy-to-understand rewards; strong for users who split spending between online shopping and offline needs.
Axis Bank ACE Credit Card
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Ideal for: Those who primarily pay bills (mobile, DTH, utility), recharge services, and occasionally order food/dine out.
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Cashback Structure: ~5% cashback on bill payments via certain digital apps (e.g. Google Pay), ~4% on fooddelivery/ride apps (Swiggy, Zomato, Ola), ~2% on other spends.
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Fees: ~499; often waived on annual spends above threshold (e.g. 2lakh).
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Why it stands out: Great for everyday needs — bills, food, rides — and for people who use UPI/digital payments regularly. Simple reward structure with good value.
Amazon Pay ICICI Credit Card
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Ideal for: Frequent shoppers on Amazon; people who want a “set-and-forget” cashback card without worrying about categories or expiry.
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Cashback Structure: ~5% cashback for Prime members, ~3% for nonPrime on Amazon purchases; smaller cashback (~2%) on partner merchants; base rate (~1%) on other spends.
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Fees: No joining or annual fee — lifetime free card.
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Why it stands out: For Amazonheavy users, this card offers strong value. The zerofee lifetime-free structure makes it easy to use without worrying about cost-benefit calculations.
Which Card Should You Pick — Based on Spending Style
Here’s a quick decision matrix depending on your spending habits:
| Your Spending Pattern | Recommended Card(s) |
|---|---|
| Mostly online shopping (Amazon, Flipkart, Myntra, etc.) | HDFC Millennia, Amazon Pay ICICI |
| Mix of online + occasional offline spends, want simplicity | SBI Cashback |
| Frequent bill payments (mobile, DTH, utilities) + food delivery / rides | Axis Bank ACE |
| Heavy Amazon usage + want a nofee, no-hassle card | Amazon Pay ICICI |
| Diverse spending across categories but want flat rewards | SBI Cashback or a mix (e.g. SBI + Axis ACE) |
Tip: Many savvy users have more than one card — e.g. one for online shopping, another for bills & daily spends — to maximize cashback across categories, rather than relying on a single “allpurpose” card.
What to Watch Out For — Pitfalls & Fine Print
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Annual/Joining Fees: Some cards charge fees that may offset benefits if you don’t spend enough to justify them. Always check fee waiver conditions.
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Caps and Limits: Cashback percentages often come with monthly or category-wise caps — so “5%” doesn’t always translate to huge savings if your spend is low or inconsistent.
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Restricted Categories: Cashback often applies only to specific categories (online shopping, food delivery, utilities). If a lot of your spending falls outside these, you may not get much benefit.
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Redemption Mechanism: Cashback might be credited as statement credit or as points that need conversion. Ensure you understand how you redeem.
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Spending Habits May Change: A card that’s perfect today might be sub-optimal in future if your spending pattern changes — re-evaluate periodically.
My Recommendations for 2025 — What I Would Do If I Were You
If I were you and using a card in Delhi in 2025, here’s what I’d do:
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Get the Axis Bank ACE for utility bills, recharges, food delivery, rides — covering most “daily essentials” in India’s digital/UPI-first economy.
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Add HDFC Millennia as a secondary card, for ecommerce shopping sprees (Amazon, Flipkart, Myntra, etc.).
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If I mostly shop on Amazon and want a nofrills card with no fees, keep the Amazon Pay ICICI.
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Use SBI Cashback as a fallback — for spends outside typical categories, and to keep things simple.
This combination ensures you get elevated cashback across most transaction types you are likely to do — online shopping, bills, groceries, food, rides — while keeping annual fees and complexity manageable.
Final Thoughts
Cashback credit cards — done right — are one of the easiest ways to convert your everyday spending into real savings without changing your lifestyle. There’s no one-size-fits-all “best” card; what matters is matching the card to your spending behavior.
If you want, I can run a personalised “Top 3 Cashback Cards for You” analysis based on your likely monthly spends (online shopping, bills, food, etc.) — it might show you exactly which cards make the most financial sense. Do you want me to build that for you now?
