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Cool Tricks of Using Your Credit Card to boost investments
Posted on Friday, January 13th, 2023 | By IndusInd Bank
Contrary to popular belief, credit cards can be the best financial product for anyone to start their investment journey. They are no longer just plastic money because not only the cards allow you to make purchases on credit and pay your monthly bills all at once, but they also help you save more and get the most out of your purchases.
If your credit card offers cashback, reward points, or other benefits, these are savings that you can compound into a larger sum and use for investment purposes later on.
If you use credit cards regularly, you must be aware of cashbacks,miles and reward points. Some people use accumulated reward points to pay bills, relish fine dining, enjoy entertainment, or even book free hotel stays or flights! So, how can credit cards help you boost investment?
Rewards for cash
Did you know that you can redeem your reward points for cash? With IndusInd Bank Credit Cards, their rewards never expire, and you can redeem them for cash to pay outstanding credit card bills. For instance, with the IndusInd Legend Credit Card, a credit card holder can earn 1 reward point per INR 100 spent on weekdays, and 2 reward points per INR 100 spent on weekends.
Therefore, if you spend INR 90,000 per month using this credit card, you can accrue upto 1800 reward points. One reward point is worth INR 0.75 in cash, so for a total of 1800 reward points, you could get INR 1350 in cash. Isn’t it just wonderful.
Furthermore, you could earn accelerated rewards worth 4X reward points with the Platinum Aura Edge Visa card. On the other hand, you could get a fuel surcharge waiver with your IndusInd Legend Card, Nexxt credit card, Platinum Aura Edge Visa credit card and EazyDiner credit card. With Platinum Visa card, you could get accelerated 1.5 rewards points for every INR 150 spent.
As you can see, you can get maximum value out of your spending by using an IndusInd credit card. Using credit cards you can get discounts, cashbacks, and more, and start saving at least 2-3% every month. For instance, if you spend INR 6L per annum using your Legend credit card you get an extra 4000 bonus reward points. This would give you a total of 10,000+ reward points. This, along with other discounts such as Swiggy discount and other cashbacks, can help you save more than INR 30,000 in a year. You can use this amount and put it away in a Systematic Investment Plan or SIP.
Small savings, big investments
Increasing small amounts in your savings can make a significant difference over the long term. For instance, look at the table below for two friends and their investment patterns for Karan and Madhu as they save different amounts using credit card offers and investment in SIPs assuming the return on equity SIP is 12%.
| Investor | Monthly Investment | 10 Years | 15 years | 20 years |
| Karan | INR 2,500 | 5,80,848 | 12,61,440 | 24,97,870 |
| Madhu | INR 5,000 | 11,61,695 | 25,22,880 | 49,95,740 |
The above table shows that Madhu can accumulate close to INR 50L in 20 years if she saved INR 5000 through credit card offers and put them in SIPs. The corpus may look small on paper, but the cumulative impact in the long term is impressive.
So, apply for a credit card today to enjoy all the perks and benefits.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
