How to Use Bank Rewards Points for Maximum Savings in 2025

Suresh, a 28-year-old IT professional from Pune, always ignored his credit card reward points – until last month. While booking a Mumbai-Goa flight, he casually checked his HDFC Regalia card and was shocked to find 38,500 unused points worth ₹19,250! But there was a catch: 12,000 points (₹6,000 value) were expiring in 15 days.

His friend Rohan laughed, "Tere points ka 30% toh waste hone wala hai!" That moment sparked Suresh's rewards journey. He discovered premium cards like Infinia give 5x points on flights, and Amazon vouchers could fetch 50% more value than cashback. But the real game-changer? Transferring points to airline partners – his 25,000 points became a free Dubai return ticket worth ₹32,000!

Now, Suresh is on a mission to crack the reward points code. In this blog, we will explore the exact strategies he learned to turn everyday spending into dream vacations and smart savings, without falling into common traps.

1. Identify High-Value Redemption Options

Making the Most of Your Bank Reward Points in 2025 is a Smart Financial Move. Let’s talk about some practical and high-value redemption options that can help you save more and get better benefits.

1. Travel Bookings

If you are an HDFC Bank customer, you can redeem reward points for flight tickets and hotel bookings through the SmartBuy portal. On premium cards like Infinia, you get ₹1 value per point. However, there is a monthly cap – for Infinia, it is up to 1,50,000 points.

2. Airline/Hotel Partner Transfers

You can transfer your reward points to airline or hotel loyalty programs to increase their value. But be aware that some banks have devalued the conversion ratios. For example, HDFC Bank changed the ratio for Accor Live Limitless from 1:1 to 2:1.

3. Gift Vouchers

Redeeming points for gift vouchers of popular brands like Amazon, Flipkart, and Myntra is a flexible option. Generally, you get ₹0.25 to ₹0.50 value per point, but on some premium cards, it can go up to ₹1.

4. Cashback

If you prefer direct savings, consider the cashback option. Typically, you get ₹0.25 per point, which helps reduce your credit card bill.

5. Charity Donations

Some banks allow you to donate your reward points to charity organisations. This is a meaningful way to use your points.

Redemption Value Comparison Table

Tips for Maximising Savings

• Premium Cards: Cards like Infinia offer higher redemption value.
   
• Transfer Ratios: Always check conversion ratios before transferring to airline or hotel programs.
  
  
• Redemption Caps: Be mindful of monthly or quarterly caps, like the quarterly cap on Apple products via HDFC SmartBuy.
  
  
• Expiry: Keep track of your reward points’ expiry date so that you can use them on time.

Redemption options and values can vary based on your specific bank and card.

2. Check Your Bank’s Website or App

Want to Get the Maximum Benefit from Your Credit Card Reward Points in 2025?

The first and most important step is: visit your bank’s website or mobile app to understand your reward points and the available redemption options. This will help you understand the real value of each point, so you can make informed decisions.

How to Use Your Bank’s Website or App

Every major Indian bank, like HDFC, ICICI, SBI, Axis, or Standard Chartered, offers online reward redemption portals for credit card holders.

General Steps:

• Log in to your bank’s NetBanking or Mobile App.
• Go to the “Credit Cards” or “Rewards” section.
• Select your credit card and check your “Reward Points” balance.
• Click on “Redeem Rewards” or “Reward Catalogue.”
• Browse available options like gift vouchers, travel bookings, merchandise, or cashback.
• Select your preferred redemption option and complete the transaction.

For example, ICICI Bank users can redeem their reward points online by logging into their Internet Banking account, going to the ‘Credit Cards’ page, clicking on the ‘Reward Points’ section, and selecting ‘Redeem Online’ to choose their desired item from the drop-down menu.

Reward Points Value Comparison (2025)

Note: The exact value per point can vary depending on your card type and redemption option.

Important Tips:

• Expiry Date: Some banks’ reward points expire if you do not redeem them in time.
  
  
• Redemption Fees: Some banks, like ICICI, charge a handling fee on redemptions.
  
  
• Minimum Points Requirement: In Axis Bank’s EDGE Rewards, you need at least ₹500 worth of points to redeem.
  
  
• Redemption Channels: SBI Cardholders can redeem their points through sbicard.com or the SBI Card mobile app.

3. Consider Bonus Categories

If You Want to Get the Maximum Benefit from Your Credit Card Reward Points in 2025, Using Bonus Categories Smartly is Very Important

Many credit cards offer higher reward rates on specific spending categories like groceries, dining, or online shopping. By spending more in these categories, you can earn more points, which will increase your overall savings.

Understanding Bonus Categories

Every credit card offers different bonus categories. Some cards give 5% cashback on groceries, while others offer 10x reward points on dining or online shopping. By choosing the right card based on your spending pattern, you can maximise your rewards.

Bonus Categories Comparison (2025)

Note: Reward rates and cashback values depend on the card issuer’s terms & conditions.

Tips for Maximising Rewards

• Analyse Your Spending Pattern: Review your monthly expenses and see which category you spend the most in.
  
  
• Choose the Right Card: Pick a credit card that offers higher rewards in the category where you spend more.
  
  
• Understand Redemption Options: Some cards give different values when you redeem points. So, it is important to understand the redemption options.
  
  
• Keep Track of Expiry Dates: Don’t miss the expiry dates of your reward points. Redeem them on time to get the full benefit.

4. Redeem Before Expiration

If You Want to Get the Maximum Benefit from Your Credit Card Reward Points in 2025, It is Very Important to Redeem Them Before They Expire

Many people keep accumulating points, but do not pay attention to their expiry dates, which causes them to miss out on valuable rewards.

Sakshi’s Example: The Impact of Reward Points Expiry

Sakshi is a Bengaluru-based marketing professional who holds an HDFC Regalia Credit Card. She uses her card regularly and keeps collecting points, but does not track their expiry dates.

In April 2025, Sakshi’s 5,000 points expired. These points were worth ₹5,000 if redeemed for travel bookings or vouchers. Now, in July 2025, another 3,000 points are about to expire.

Reward Points Validity Periods (2025)

Tips to Avoid Expiry

• Check Regularly: Log in to your bank’s app or NetBanking portal to check your reward points balance and expiry dates.
  
  
• Expiry Alerts: Some banks show expiring points in monthly statements.
  
  
• Timely Redemption: Plan to redeem points before they expire to get the maximum value.
  
  
• Redemption Channels: Use your points for travel bookings, gift vouchers, or cashback – whichever gives you the most value.

5. Don’t Overspend Just For Points

Earning credit card reward points in 2025 can be a good financial strategy, but spending extra just for the sake of points can harm your finances. Let’s understand this with an example of how overspending can reduce the real benefit of rewards.

Jack’s Example: When Rewards Took a U-Turn

Jack is an IT professional from Bengaluru. He has a premium credit card that gives 2 reward points for every ₹100 spent. Each point is worth ₹0.25. Jack thought that if he spent more, he would earn more points, so he started shopping unnecessarily.

Jack spent an extra ₹30,000 just to earn ₹150 worth of rewards. But since he did not pay the full credit card bill, he got charged ₹4,500 in interest. This led to a net loss of ₹4,350.

Smart Spending Tips

• Make a Budget: Set a monthly budget and spend within your limits.
  
  
• Spend for Need, Not for Rewards: Avoid unnecessary purchases just to earn points.
  
  
• Pay Your Balance on Time: Always pay your full credit card balance every month to avoid interest.
  
  
• Avoid High-Interest Purchases: Do not make expensive purchases you can’t afford, no matter how many points they offer.

It is important to prioritise your financial health. Reward points are only beneficial when earned through responsible spending. Overspending can not only break your budget but also lead you into a debt trap.

6. Compare Redemption Rates

If you want to get the maximum benefit from your credit card reward points in 2025, it is very important to compare different redemption options. Every redemption option gives you a different value, and by making the right choice, you can get the best use of your points.

Mark’s Case Study: Comparison of Redemption Options

Mark is a software engineer from Bengaluru. He has an HDFC Regalia Gold Credit Card and has earned 20,000 reward points. Now he is thinking about how to redeem them. He has three options: travel bookings, gift vouchers, and cashback.

Note: The exact value per point can change depending on your card type and the option you choose.

Tips for Maximising Redemption Value

• Compare Redemption Options: Look at the value of each option and choose the one that gives you the most benefit.
  
  
• Use for Travel Bookings: If you travel often, using points for travel bookings can give you the highest value.
  
  
• Choose Gift Vouchers: If you love shopping, redeeming gift vouchers can be a good option.
  
  
• Use Cashback: If you want to lower your credit card bill, go for the cashback option.
  
  

Mark used his points for travel bookings and got a maximum value of ₹20,000. You too can get the best use of your reward points by comparing your redemption options carefully.

Conclusion

If you want to make the most of your bank reward points in 2025, you will need a little planning and smart thinking. First of all, try to redeem your points for high-value options like travel bookings, airline transfers, or premium gift vouchers, because these give you the best value. On premium cards from banks like HDFC, you can get ₹1 per point on travel bookings, which is a great deal.

Secondly, every bank has a different reward system, so do not forget to check your bank’s website or app. Also, keep an eye on the expiry date of your points, or all the rewards you have worked hard to collect could go to waste. Use bonus categories to your advantage – spend more where you earn more points.

But do not ever think of spending extra just for the sake of earning points. It is important to pay your credit card bill on time and avoid overspending. Otherwise, with interest and charges, the benefit of the rewards will be lost. With a little smart strategy, your reward points can turn into real savings!

FAQs

1. How to make the best use of reward points?
You can maximise the value of your points by redeeming them for travel bookings, airline transfers, or premium gift vouchers. Always check your bank’s redemption options to choose the best deal.

2. Do reward points expire?
Yes, in most banks, reward points expire after 2–3 years. Keep checking regularly and use them before they expire.

3. Is it okay to spend extra just for points?
Not at all. Spending extra just to earn points can lead to financial loss. Always spend within your limit and pay your full credit card bill on time.

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LoansJagat Team

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