Diwali shopping: How to maximise reward points and get the most out of your budget

Many banks and credit cards reset reward points at the end of each quarter or year. To avoid losing out on these valuable rewards, make it a point to redeem any points expiring this quarter for your festive purchases.

Diwali is around the corner and households across the country are gearing up for celebrations, which often means increased spending on everything from home decor to electronics. Retailers and financial institutions capitalise on the heightened consumer activity by offering various loyalty programs, reward points, and promotional discounts. However, with the right strategies, you can stretch your festive budget while maximising the rewards you earn.

Here are some smart strategies to make the most of your reward points this festive season:

Capitalise on expiring points

Many banks and credit cards reset reward points at the end of each quarter or year. To avoid losing out on these valuable rewards, make it a point to redeem any points expiring this quarter for your festive purchases. Not only do you secure your hard-earned points but you also ease the financial burden during a high-spending period.

Check your card provider’s portal for exclusive festive-season redemptions. Opt for e-vouchers or gift cards, which you can save for later purchases if you don't have an immediate need.

Use merchant-specific discounts with points

E-commerce platforms and retail stores often offer additional discounts during the festive season when you use your rewards alongside specific bank offers. Maximise your savings by stacking these merchant-specific deals with your accumulated points.

Plan your purchases around the festive days when your card offers special discounts at select merchants. Keep an eye out for increased cashback or bonus rewards on certain categories, and combine these with point redemptions for even bigger savings. For example, Big Billion Days in the festive season on Flipkart offers significant discounts on electronics, home appliances, smartphones, and more. Shoppers can also benefit from exclusive bank offers for extra bonus and rewards for purchases.

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Pick the right card for maximum points

Not all credit cards are created equal when it comes to rewards. Some cards offer better returns on high-value transactions, especially during festive seasons. If you have multiple cards, choose the one that provides the highest rewards for your specific purchase, particularly for bigger-ticket items like electronics, furniture, or festive gifts.

Compare the reward rates on the different cards you hold before making purchases by knowing the features and benefits offered by your bank. Some co-branded cards with e-commerce websites may offer higher point multipliers for online shopping or electronics from their website. Prioritize the card that gives you the best value in terms of reward points or cashback.

Focus on high-reward spending categories

Certain categories, like travel, luxury goods, or electronics, often have higher reward rates, especially during the festive season. Maximise the value of your spending by focusing on these categories when possible.

Concentrate your spending on categories that give you the most rewards. For instance, use a card with high returns on electronics for big-ticket purchases, and redeem points to reduce your out-of-pocket costs.

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Tap into festive offers and bonuses

During the festive season, retailers and financial institutions partner to offer special deals, like bonus points, cashback offers, or discounts, on popular products. These limited-time promotions allow you to earn more points while spending less, making it a win-win for your festive shopping.

Keep an eye on festive promotions that offer reward point multipliers, special cashback deals, or discounts when using specific credit cards. Timing your purchases with these offers can lead to extra savings and more rewards.

For instance, big e-commerce players have tie-ups with various banks to offer instant discounts on debit and credit cards. For example, during its “Great Indian Festival” sale, Amazon offers a 10% instant discount on SBI debit and credit cards.

Compare prices and rewards

Before making any major purchases, it’s a good idea to compare prices across various platforms. Some e-commerce sites may offer better discounts or reward point multipliers when using specific credit cards. Ensure you're getting the best value for your money by balancing competitive prices with the rewards your card offers.

Use comparison tools or apps to find the best prices and deals. Then, use the card that gives the highest reward rate for that category to maximize your savings.

There are countless options online, with different stores offering different brands, product features, and competitive prices. Big e-commerce companies like Myntra, Flipkart and Amazon can have similar products at competitive prices. Choose your favourable price and seek maximum discounts.

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Set a festive budget

Festive offers and discounts can tempt you to overspend. To stay financially balanced, set a clear budget before you start shopping. Use your accumulated reward points to supplement your budget, allowing you to buy higher-quality items without going overboard.

If you’re planning a large purchase, use your reward points to offset some of the costs. This will help you afford bigger-ticket items without straining your finances.

The festive season presents a golden opportunity to make every purchase more rewarding, but only if you approach it with a clear strategy. By focusing on high-reward categories, optimizing the use of multiple cards, and strategically redeeming points, you can significantly enhance the value you get from your festive spending. Smart financial planning will not only save you money but also allow you to enjoy the celebrations to the fullest without worrying about overspending.

The writer is Co-founder & CEO at Twid

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