Pay in full and on time and you can earn from two levers: A) float interest during the grace period and B) cashback rewards. Use the calculator, compare fees, and pick the right cards.
You spend today, but payment is due after a grace period (commonly ~20–50 days). Until the due date, your money can stay in a savings account or overnight fund and earn simple interest.
Example: Annual spends ₹6,00,000 (₹50,000/month). If your average float is ~30 days and your savings yield is 4% p.a., rough interest ≈ ₹6,00,000 × (30/365) × 4% ≈ ₹1,973.
Sensitivity: At 3% and 25 days ≈ ₹1,233; at 6% and 45 days ≈ ₹4,438.
Choose cards that offer flat cashback or high-value points you can convert to cash/statement credit. Flat 1%–2% cards are easy. On ₹6,00,000 yearly spends, that’s ₹6,000–₹12,000.
Combine A + B: ~₹7,200 to ₹16,400+ in this illustration, before annual card fees and taxes. Your actual figure depends on your float days, savings yield, cashback rate, fee waivers, and category caps.
Formulae: Float = spends × (days/365) × (rate/100). Cashback = spends × (cb/100).
| Card | Cashback Structure | Annual Fee | Notable Caps / Hidden Fees |
|---|---|---|---|
| Cashback SBI Card | Up to 5% online (issuer-defined categories), ~1% others; terms change. | ₹999 (waived ≥ ₹2L annual spends) | Monthly cashback caps; exclusions; fuel surcharge waiver limits; forex markup ~3.5%+GST is common industry-wide; rent/wallet fees possible. |
| Amazon Pay ICICI | 5% at Amazon for Prime (3% non-Prime); ~1% others (Amazon Pay balance). | ₹0 | No annual fee; category exclusions; limited value outside Amazon ecosystem; forex markup applies for international use. |
| Flipkart Axis | 5% on Flipkart; ~1.5% others. | ₹500–₹1,000 (variant-based) | Category caps; forex markup typically ~3.5%+GST; rent/wallet convenience fees may apply. |
| Axis Ace | Historically 2%–5% depending on category/platform; devaluations occur. | ₹499+ (variant) | Category/platform restrictions; bill-pay via specific apps; caps; forex markup. |
| HDFC Millennia | Up to 5% on select online partners; ~1% base; caps. | ₹1,000 | Monthly caps; partner-only elevated rates; forex markup ~3.5%+GST; rent/wallet charges may apply. |
Issuers frequently change rewards and fees. Always check the latest “Most Important Terms & Conditions (MITC)” before applying.
| Card | Cashback | Annual Fee | Notes / Fees |
|---|---|---|---|
| Wells Fargo Active Cash® | 2% cash rewards on purchases | $0 | Foreign transaction fee may apply; sign-up bonus often available. |
| Citi® Double Cash | 2% total (1% when you buy + 1% when you pay) | $0 | Cash back as ThankYou® Points; foreign transaction fee typically applies. |
| Fidelity® Rewards Visa Signature® | 2% when deposited into eligible Fidelity account | $0 | Best value when redeeming into Fidelity; foreign transaction fee may apply. |
| PayPal Cashback Mastercard® | Up to 3% via PayPal; typically ~1.5%–2% others | $0 | No annual fee; foreign transaction fee noted in some materials. |
| Fee Type | India — Typical Range | US — Typical Range | Why It Matters |
|---|---|---|---|
| Late Payment Fee | ~₹100 for small overdues up to ~₹1,200+ at higher slabs (varies by issuer). | ~$25–$35+ depending on issuer; regulatory caps may vary by period. | One late fee can offset a year’s cashback + float gains. |
| Foreign Transaction / Forex Markup | ~1%–3.5% of txn amount + GST (many cards around ~3.5%+GST). | ~1%–3% common; many no‑FTF cards exist. | International spends can lose value vs cashback earned. |
| Rent / Wallet / Utility Fees | Often 1%+ convenience fee; some issuers exclude from rewards. | Varies by merchant/wallet; convenience fees can apply. | Can erase cashback; check caps & exclusions. |
| Cash Advance / ATM Withdrawal | ~2.5% of amount (Min ₹300) + immediate interest (APR high). | ~2%–3% + higher interest from day 1. | Using card as cash defeats float + cashback strategy. |
Always verify current fees in your issuer’s MITC / Key Facts. Ranges above are indicative and subject to change.