The festive season beginning with Navratri has finally arrived and in a bid to cash in on the festive fervour, a host of e-commerce majors – including Flipkart, Amazon India and Paytm Mall – have come out with their annual festive sales and also rolled our mega offers to woo buyers. The deals include hefty discounts and cashback offers on a wide range of products, with some banks offering 10% additional cashback on their credit and debit cards.
For example, SBI Card has entered into an exclusive partnership with Flipkart for Flipkart Big Billion Days (being held from 20th September to 24th September), whereby SBI Card cardholders can avail 10% instant discount if they buy anything from Flipkart. Apart from SBI Card, 10% instant discount is also available on SBI Debit cards. Similarly, 10% additional cashback is being offered at Amazon Great India Festival (from 21st to 24th September) on HDFC Bank debit and credit cards, while Paytm Mall customers can get 5% additional cashback if they make their purchase through an ICICI Bank credit or debit card.
What is more, in some cases caskback up to Rs 10,000 is being offered on the credit cards of some banks. For example, consumers who pre-book iPhone 8 and iPhone 8 Plus between September 22 and September 29 through Reliance Jio will be eligible for Rs 10,000 cashback on the purchase. This will bring down the effective price of the base 64GB iPhone 8 model to Rs 54,000, while the prive of the 256GB model will drop to Rs 67,000. Similarly, the effective prices of the 64GB and 256GB iPhone 8 Plus will become Rs 63,000 and Rs 76,000, respectively. Isn’t it great? But hold on, there is more than meets your eye!
What is the catch?
Cashback offers are usually good as buyers get that much cash credited to their accounts instantly. However, many-a-times such offers come along with some terms and conditions, which must be understood first before going for the purchase. In the Jio’s case, for instance, the buyers will be able to claim the offer only if they make the purchase via a Citibank credit card. This means that if you pre-book the iPhone via the credit card of any other bank, then you won’t be able to avail the offer.
Similarly, in the case of Amazon India, there is a scheme of 10% cashback on HDFC Bank debit and credit cards. However, you can get up to a maximum of Rs 4,500 cashback per card. Also, the minimum order value has to be Rs 5000 and the maximum cashback that you can avail per order is Rs 1500. Thus, if you place an order for Rs 15000 or above, you will be eligible for a cashback of Rs 1500. And if you place 9 different orders for Rs 5000 each on the same day using your HDFC Bank debit or credit card, then you will be eligible for a total of Rs 500 X 9 = Rs 4500 cashback.
Financial experts say that cashback offers are a good way to maximize your discounts. However, consumers should be careful while utilizing such options.
For example, “the Rs 10,000 cashback offer on the latest iPhone may be good. However, you also need to keep in mind that the price of the product starts at Rs 64000. You should not purchase a product just because of the Rs 10000 cashback offer. Go for it of your earnings allow such an expense and you are a die-hard iPhone lover. Earning Rs 70000 per month and buying a Rs 64000 iPhone may make you happy, but also will lead you to start making unwanted expenses. The future may be painful. So avoid it if you cannot afford it,” advises Jitendra P.S. Solanki, CFP and Financial Planner for Special Needs Dependent Families.
Before going for such offers, you also need to compare them with some competitive offers. For example, if some other company is giving you more discount on the same product, then going for that cashback scheme won’t be a wise move!