# How to Calculate the Real Value of Credit Card Reward Points
Author: Savitri Bobde
Author URL: https://getbelong.com/blog/author/savitri-bobde/
Published: 2026-09-26
Category: Personal Finance
Category URL: https://getbelong.com/blog/category/personal-finance/
Meta Title: How to Calculate the Real Value of Credit Card Reward Points
Meta Description: A step-by-step method to value credit card reward points in rupees or dirhams: redemption options, miles, fees, expiry, caps and true reward rate.
Tags: Credit Cards
Tag URLs: Credit Cards (https://getbelong.com/blog/tag/credit-cards/)
URL: https://getbelong.com/blog/credit-card-reward-points/

![featured-1790428581566-1790428582674.png](https://prod.superblogcdn.com/site_cuid_clx4a3rx6000caheo10zipfw1/images/featured-1790428581566-1790428582674-compressed.png)

What is one credit card reward point worth?

If your answer is "it depends", you are already ahead of most cardholders. The same point can be worth very different amounts, depending on how and when you use it.

In our [Belong](https://getbelong.com/) WhatsApp community, this question comes up constantly.

NRIs in Dubai compare miles cards. Resident Indians in Bengaluru debate vouchers against statement credit. Almost everyone quotes a headline reward rate, and almost nobody calculates the value they actually receive.

This guide gives you a simple, repeatable method to calculate the real value of credit card reward points. We cover redemption options, air miles, fees, caps, expiry and the behavioural traps in between. By the end, you will be able to put a rupee or dirham figure on every point you hold.

## The Short Answer: Points Have No Fixed Value

A reward point is not money. It is a promise from your bank, and the bank decides what that promise is worth.

[HDFC Bank's reward points page](https://www.hdfc.bank.in/credit-cards/services/reward-points) lists several redemption routes. These include cashback against your bill, instant vouchers, a product catalogue, air miles, and flight and hotel bookings. Each route can give a different value for the same points.

So the real question is not "what is a point worth?"

The better question is what a point is worth to you, through the route you will actually use.

👉 **Tip:** Never compare two cards using their earn rates alone. A card that earns more points can still give less value, if each point is worth less.

## Who Should Read This Guide?

**If you are an NRI in the UAE**, you probably earn points or miles on UAE cards. Your points may convert into airline miles, and those miles follow a separate set of rules.

**If you are an NRI with an Indian card**, you may be earning points slowly because you live abroad. Expiry is your biggest risk.

**If you are a resident Indian**, you likely hold two or more reward cards. Your challenge is choosing the right card for each spend, and the right redemption for each point.

The core method is the same for everyone. We will highlight where your situation changes the answer.

## The Core Formula: Value Per Point

Let us start with the one number that matters most. We call it **value per point**.

- **Value per point** = Net value you receive ÷ Points you use


"Net value" means what you actually get, minus anything you pay to get it. That includes redemption fees, taxes on bookings and any cash top-up.

Here is an illustration with a hypothetical card. You redeem 10,000 points for a statement credit of 2,500 rupees. Your value per point is 0.25 rupees.

Now you redeem the same 10,000 points for a flight. The flight would have cost 6,000 rupees in cash, and you pay 1,000 rupees in taxes. Your net value is 5,000 rupees, so your value per point is 0.50 rupees.

Same points. Double the value. That is why the redemption route matters so much.

## Step Two: Your True Reward Rate

Value per point tells you what a point is worth. But you also need to know how many points you earn for your spending.

Put the two together, and you get your **true reward rate**. This is the percentage of your spending that comes back to you as real value.

- **True reward rate** = (Points earned per 100 spent × Value per point) ÷ 100 × 100


In plain words: multiply what you earn by what each point is worth. Then express it as a percentage of what you spent.

Continuing the illustration. Say your hypothetical card earns 4 points for every 100 rupees spent.

At statement credit value, 4 points are worth 1 rupee. Your true reward rate is 1%.

At flight redemption value, 4 points are worth 2 rupees. Your true reward rate becomes 2%.

This is the number you should compare with a simple cashback card. If a cashback card gives you a flat percentage with no effort, it is your honest baseline.

👉 **Tip:** Calculate your true reward rate using the redemption you will realistically use. Not the best one on the bank's website.

## The Redemption Ladder: How Different Options Compare

Most banks offer a ladder of redemption options. The value per point usually changes as you move up or down the ladder.

Redemption route

Typical value pattern

What to watch

Statement credit or cashback

Often the lowest, but most flexible

Caps and minimum blocks

Product catalogue

Varies widely

Catalogue prices vs market prices

Brand vouchers

Often middle of the ladder

Only useful if you shop there

Travel portal bookings

Can be higher

Compare with cash fares elsewhere

Airline miles transfer

Can be highest, or lowest

Depends on how you use the miles

These patterns are general, not rules. Your card's actual values are set by your bank and change over time.

### Statement credit: your floor value

Statement credit is the simplest redemption. Points reduce your card bill, and the value is easy to see.

It is often the least rewarding route per point. But it has one big advantage: it is as good as cash. Use it as your **floor value**, the minimum any other redemption must beat.

There can [be limits](https://getbelong.com/blog/credit-utilisation-ratio/) here too. [SBI Card](https://www.sbicard.com/en/faq/reward-points-redemption.page) caps statement credit redemptions per card each month, and requires them in fixed point blocks. Check whether your bank has similar limits.

### Product catalogue: the hidden markup

Catalogue redemptions look attractive. A pressure cooker, headphones or a smartwatch, "free" with points.

But catalogue items are priced in points, not rupees. To know your value, compare the points required with the item's lowest price at a regular online store. Catalogue pricing often includes a markup, so the value per point can drop sharply.

[HDFC Bank](https://www.hdfc.bank.in/credit-cards/services/reward-points) notes that for product and voucher redemptions, points can cover up to a set share of the value. You pay the rest by card. This changes your calculation, because the cash part is not free.

### Vouchers: value only if you would have spent anyway

A voucher for a brand you use regularly is close to cash. A voucher for a brand you rarely use is worth much less to you, whatever its face value.

This is a behavioural point, not a mathematical one. If a voucher pushes you to buy something you would not otherwise buy, its value is not its face value.

### Travel portals and airline miles

This is where values can climb highest. It is also where calculations go wrong most often. We cover miles in detail in the next section.

## How to Value Air Miles Correctly

Air miles deserve special attention, especially for NRIs flying between the UAE and India.

Many UAE card programmes let you convert points into airline miles. [Emirates NBD](https://www.emiratesnbd.com/en/help-and-support/redeeming-plus-points) notes that once Plus Points are converted to frequent flyer miles, the airline programme's terms apply. So you are valuing two programmes, not one.

### The miles formula

- **Value per mile** = (Cash fare you avoided − Taxes and fees you paid) ÷ Miles used


The "cash fare you avoided" should be the fare you would genuinely have paid. Not the most expensive fare on the airline website.

Here is an illustration. Say a return flight between Dubai and Kochi would cost you 1,500 dirhams in cash.

You use 30,000 miles and still pay 300 dirhams in taxes and fees. Your net value is 1,200 dirhams, or 0.04 dirhams per mile.

These numbers are hypothetical. Your real fares, taxes and miles requirements will differ.

### Then work backwards to your card points

If your card converts points into miles, multiply through. Your value per card point equals the value per mile, times the miles you get per point.

This two-step calculation is where most people discover the truth. A flashy miles card can deliver less value per dirham spent than a plain cashback card. Or it can deliver much more, if you fly often and book smartly.

### The miles traps to avoid

- **Overvaluing peak fares.**

  If you would never pay that fare in cash, do not use it to value miles.

- **Ignoring taxes and fees.**

  Award tickets are rarely free. Subtract what you pay.

- **Ignoring expiry.**

  Miles in airline programmes follow the airline's rules, not your bank's.

- **Chasing upgrades you would not buy.**

  A business class seat has high cash value but low personal value if you would never pay for it.


Our guides on [air miles credit cards in the UAE](https://getbelong.com/blog/air-miles-credit-cards-uae/) and [travel credit cards](https://getbelong.com/blog/travel-credit-cards-uae/) compare popular options.

👉 **Tip:** Value miles using the fare you would actually buy. Lounge access and upgrades are pleasant, but only count them if you would pay for them.

## The Deductions: What Reduces Your Real Value

So far, we have calculated gross value. Now we need to subtract the leaks. This is the step most calculators skip.

### 1\. Redemption fees

Some banks charge a fee each time you redeem. HDFC Bank's [redemption form](https://www.hdfc.bank.in/content/dam/hdfcbankpws/in/en/pdf/forms-centre/credit-cards/Rewards%20Redemption%20Form.pdf) mentions a redemption fee that applies on some cards.

[SBI Card](https://www.sbicard.com/en/faq/rewards-information.page) also refers to a redemption fee. It notes the fee is credited back if a redemption request is cancelled.

A redemption fee is a fixed cost. It hurts small redemptions far more than large ones. Batch your redemptions where it makes sense.

### 2\. Expiry

Expired points are worth zero. There is no partial credit.

[SBI Card](https://www.sbicard.com/en/faq/rewards-information.page) states its reward points are valid for 24 months. They expire on the last day of the 24th month. Other banks have different rules.

In the UAE, [Emirates NBD](https://www.emiratesnbd.com/en/help-and-support/earning-plus-points) says its Plus Points do not expire while you hold an active card. But once converted to miles, the airline's expiry rules take over.

### 3\. Earning exclusions

Not every rupee you spend earns points. [SBI Card](https://www.sbicard.com/en/faq/earning-reward-points.page) lists several non-earning transactions. These include balance transfers, EMI conversions, cash advances, fees and certain wallet loads.

Axis Bank has also announced exclusions. Some of its cards do not earn rewards on categories like [rent, insurance, fuel, education, utilities and government spends](https://www.axis.bank.in/important-links/credit-card/important-announcement-on-credit-card). If your big spends sit in excluded categories, your real earn rate is lower than advertised.

### 4\. Caps on earning

Many cards cap how many points you can earn in a category or statement. [Emirates NBD](https://www.emiratesnbd.com/en/help-and-support/earning-plus-points) notes a maximum number of Plus Points per statement. Above the cap, extra spending earns nothing extra.

### 5\. Cash top-ups

When points cover only part of a redemption, you pay the balance in cash. That cash is part of the cost. Subtract it before calculating value per point.

### 6\. Devaluation and inflation

Banks can change point values, earn rates and catalogue prices. A point worth something today may be worth less next year.

Think of this like [depreciation](https://getbelong.com/blog/depreciation-meaning/) on an asset you cannot sell. The longer you hold points, the more exposed you are.

[Inflation](https://getbelong.com/blog/inflation-meaning/) adds a quieter layer. Even if your points keep their nominal value, the flights and products they buy get more expensive.

## A Complete Worksheet You Can Use

Here is the full method in one place. Use it once for each card you hold.

Step

What to calculate

Where to find it

1\. Earn rate

Points per 100 of eligible spend

Card terms or key fact statement

2\. Eligible spend

Last year's spend minus excluded categories

Your statements

3\. Points earned

Eligible spend × earn rate ÷ 100

Your calculation

4\. Redemption route

The one you will actually use

Your honest habits

5\. Gross value

Rupees or dirhams received

Bank catalogue or booking

6\. Deductions

Fees, taxes, top-ups, expired points

Statements and terms

7\. Net value per point

(Gross value − deductions) ÷ points used

Your calculation

8\. True reward rate

Net value ÷ eligible spend × 100

Your calculation

Step 8 is your answer. Compare it with your card's annual fee and with a simple cashback baseline.

### A worked example for a resident Indian

Meera is a product manager in Pune. She holds a hypothetical rewards card and spends on groceries, dining, online shopping and utilities.

Her headline earn rate looks generous. But some of her utility spending is excluded, and grocery points are capped. After removing these, her eligible spending falls noticeably.

She usually redeems for vouchers at a brand she uses weekly. After a small redemption fee, her true reward rate turns out to be modest. A plain cashback card would have given her almost the same return, with no tracking.

Meera now keeps the rewards card only for its strongest category. Everything else goes on the simpler card.

### A worked example for an NRI in Dubai

Rahul works in Dubai and flies home to Thiruvananthapuram twice a year. He holds a hypothetical miles card with a meaningful annual fee.

He values his miles using the economy fares he actually buys, not premium fares. He subtracts taxes paid on award tickets and adds the annual fee to his cost.

His net value is decent, because he redeems every year and never lets miles lapse. For him, the miles card earns its place. His colleague, who flies once every two years, reaches the opposite conclusion with the same card.

## How to Value Welcome Bonuses and Milestone Rewards

Card offers often lead with a welcome bonus or milestone reward. These can be valuable, but only if you value them honestly.

### Welcome bonuses

A welcome bonus usually needs a set amount of spending within a short window. Value it using the same method: points received, times your realistic value per point.

Then ask one question. Would you have spent that amount anyway in that window?

If yes, the bonus is genuine value. If you would need to bring forward or invent spending, discount it heavily.

### Milestone rewards

Milestone rewards unlock at spending thresholds during the year. They can lift your true reward rate meaningfully.

But the same exclusions often apply. Rent, wallet loads and similar categories may not count towards milestones, just as they may not earn points.

### How to fold them into your calculation

- **Add the value** of any bonus you will realistically earn to your yearly net value.

- **Divide by your eligible spend** for the year to get an updated true reward rate.

- **Do not repeat one-time bonuses** when valuing the card for future years.


The last point matters. A welcome bonus flatters year one. From year two, the card must stand on its ongoing value alone.

👉 **Tip:** Judge a card by its second-year value. That is the value you will live with.

## A Quarterly Routine to Protect Your Points

Most point losses come from neglect, not bad decisions. A short routine every three months fixes most of this.

When

What to check

Why it helps

Every quarter

Points balance and expiring points

Stops silent expiry

Every quarter

Changes to earn rules or exclusions

Keeps your rate honest

Before a big purchase

Which card earns most on it

Maximises value per spend

Before redeeming

Value per point across routes

Picks the best route

Before closing a card

Unredeemed points

Avoids forfeiting points

Once a year

True reward rate vs annual fee

Decides keep or switch

While you are reviewing your cards, it is a good moment to check your credit report too. UAE residents can use the options in our guide to [credit score apps in the UAE](https://getbelong.com/blog/credit-score-apps-uae/).

## Where Rewards Meet Your Investment Plan

Let us pause here. Reward points are a small benefit on money you spend. Investments are a larger opportunity on money you keep.

At [Belong](https://getbelong.com/), we see a common pattern. People spend hours optimising points worth a small percentage of spending, while leaving savings idle. Both deserve attention, but not equal attention.

A simple habit helps. When you redeem points as statement credit, move the same amount into savings or investments that month. Small, regular amounts benefit from [compounding](https://getbelong.com/blog/compounding-meaning/) over time.

**If you are an NRI**, you may want safe, repatriable ways to invest in India. Compare deposit options with our [NRI FD rates tool](https://getbelong.com/tools/nri-fd-rates/). For dollar-denominated savings, explore our [USD fixed deposits](https://getbelong.com/products/usd-fixed-deposits/) through GIFT City.

**If you are a resident Indian**, you may want global diversification and USD exposure. Browse our [GIFT City mutual funds explorer](https://getbelong.com/tools/gift-city-mutual-funds/) to see what is available.

You can download the [Belong](https://getbelong.com/) app to explore these options in one place. Or join our WhatsApp community to compare notes with other investors.

## For NRIs in the UAE: Getting Real Value From UAE Card Rewards

UAE card programmes are varied. Some earn bank points, some earn airline miles directly, and some give cashback.

### Know which programme you are really in

With some UAE cards, you earn bank points that can later convert to miles. With co-branded cards, you may earn airline miles directly.

This distinction matters for expiry and flexibility. Bank points may stay flexible until you convert them. Once converted to miles, they usually cannot come back.

### The cashback timing detail

[Emirates NBD](https://www.emiratesnbd.com/en/help-and-support/redeeming-plus-points) notes that a cashback redemption counts as a payment towards your card. If you use auto debit, it says to redeem at least 24 hours before your due date. Otherwise, the full auto debit amount may still be taken.

This is a small detail with a real cash flow effect. Redeem early if you want the cashback to reduce this month's payment.

### Supplementary cards and pooled points

Emirates NBD also says that rewards earned on supplementary cards go to the primary card. Only the primary cardholder can redeem them.

If you give a supplementary card to your spouse, factor their spending into your calculation. Pooled points can reach better redemption thresholds faster.

### The forex offset

Many NRIs use UAE cards when visiting India or travelling abroad. Foreign currency transactions often attract conversion fees.

If your card earns points on foreign spends but charges a conversion fee, the fee can wipe out the reward. Our guide on [UAE credit card forex charges](https://getbelong.com/blog/forex/uae-credit-card-forex-charges/) explains the cost side. Our comparison of [zero forex markup and cashback cards](https://getbelong.com/blog/forex/zero-forex-markup-vs-cashback-cards/) helps you choose between them.

A related trap is booking flights in a foreign currency. Our guide on [flight bookings in foreign currency](https://getbelong.com/blog/forex/flight-bookings-in-foreign-currency/) explains why the currency of payment matters.

👉 **Tip:** For foreign spending, subtract the forex fee from your reward value. A card with a lower reward and no forex fee can come out ahead.

### Choosing the right UAE card

If you are still choosing, our guide to the [best credit cards in the UAE](https://getbelong.com/blog/best-credit-card-uae/) compares categories. For fee-free options, see our list of [no annual fee credit cards in the UAE](https://getbelong.com/blog/no-annual-fee-credit-cards-in-uae/).

If lounge access is part of the appeal, read our guide on [credit cards with airport lounge access](https://getbelong.com/blog/credit-cards-in-uae-for-airport-lounge-access/). Only count lounge visits you would genuinely use.

### A two-card setup that works for many NRIs

Many NRIs in the UAE settle on a simple pair. One card for everyday spending in dirhams, and one for travel and foreign spends.

The everyday card should have a strong, easy-to-value reward, often cashback. The travel card should have low forex costs and useful travel benefits you actually use.

Our guide to the [best credit cards for NRIs living in Dubai](https://getbelong.com/blog/best-credit-cards-for-nri-living-in-dubai/) shows how different cards fit these roles.

## For NRIs Holding Indian Credit Cards

If you still hold an [Indian card](https://getbelong.com/blog/best-credit-cards-in-india/) while living abroad, your reward situation is different.

### The slow-earning problem

Your Indian card spending may be low. Points build slowly and may not reach redemption thresholds before expiry.

With a 24-month validity like SBI Card's, points earned early can expire before you have enough to redeem well. Check your expiring points regularly on your bank's app or statement.

### Points cannot always move between cards

[SBI Card](https://www.sbicard.com/en/faq/rewards-information.page) states that reward points cannot be transferred from one SBI Card to another. They can be redeemed only on the card where they were earned.

So if you hold two cards with the same bank, do not assume you can combine points. Check your bank's rules.

### Before you close an Indian card

Redeem your points before closing any card. Points attached to a closed account are usually lost, subject to your bank's terms.

This matters for NRIs pruning cards they no longer use. Our guide on the [best credit cards for NRIs](https://getbelong.com/blog/best-nri-credit-cards/) covers options suited to NRI usage patterns.

### Returning to India

If you plan to move back, think about your UAE points and miles too. Redeem UAE bank points before closing UAE cards. Check whether converted airline miles remain usable after you leave.

Our [NRI travel money checklist](https://getbelong.com/blog/forex/nri-travel-money-checklist/) is a useful companion when planning a move or a long trip.

## For Resident Indians: Picking the Right Card for Each Spend

Resident Indians often hold several reward cards. The goal is not to maximise points. It is to maximise real value with the least effort.

### Match cards to categories

Each card usually has one or two strong categories. Use each card only where its true reward rate is highest.

Our guide on [how to choose the right card](https://getbelong.com/blog/forex/choosing-card/) explains how to think about categories and costs together.

### Keep one simple fallback card

For everything that does not fall into a bonus category, a simple cashback card is often best. Our comparison of [cashback credit cards](https://getbelong.com/blog/cashback-credit-cards-nris/) covers options.

A flat cashback rate is easy to value. It does not expire in the same way, and it needs no redemption strategy.

### Watch category exclusions closely

As we saw with Axis Bank and SBI Card, banks exclude categories like rent, wallets, fuel and utilities from earning. These rules change often.

Review your card's current terms at least once a year. A category that earned well last year may earn nothing this year.

## The Behavioural Side: Why Most People Undervalue or Overvalue Points

Numbers are only half the story. How we think about points shapes how much value we actually get.

### The "free money" illusion

Points feel like a bonus, not real money. So people redeem them carelessly, often for catalogue items they do not need.

Treat points as money with a conversion rate. That single mindset shift improves most redemptions.

### The hoarding trap

Some people save points for years, waiting for a dream redemption. Meanwhile, the points face expiry, devaluation and changing rules.

Unless you have a specific plan, redeem regularly. A good redemption now usually beats a perfect redemption that never happens.

### The spending trap

The most expensive mistake is spending more to earn more points. If a reward rate of a small percentage pushes you to spend extra, you lose far more than you gain.

Your real reward is a percentage of spending you would have done anyway. Anything beyond that is not a reward.

### The complexity tax

Some people hold five or six reward cards, each with its own categories, caps and expiry dates. On paper, this maximises rewards.

In practice, complexity has a cost. Missed due dates, forgotten expiry, wrong card at the counter. Each slip leaks value.

If managing your cards feels like a part-time job, simplify. Two or three well-chosen cards usually deliver most of the value with a fraction of the effort.

### The debt trap

If you carry a balance, card interest will almost always exceed any reward value. No redemption strategy can fix this.

Pay your bill in full every month. Rewards only make sense on top of that discipline.

👉 **Tip:** If you ever carry a balance, stop optimising rewards. Clear the debt first. Then come back to points.

## Common Mistakes When Valuing Reward Points

Mistake

Why it misleads you

Better approach

Using headline earn rates

Excluded spends earn nothing

Use eligible spend only

Using the best redemption value

You may not use that route

Use your realistic route

Valuing miles at peak fares

Overstates real benefit

Use fares you would pay

Ignoring taxes on award flights

Award tickets are not free

Subtract taxes and fees

Forgetting redemption fees

Small redemptions lose most

Batch redemptions

Letting points expire

Expired points are worth zero

Track expiry quarterly

Ignoring forex fees

Fees offset rewards abroad

Net out forex costs

Counting catalogue face value

Catalogue prices can be marked up

Compare with store prices

## Your Decision Guide

Let us turn this into clear actions.

**If you mainly want simplicity:** Use a cashback card as your main card. Its value is easy to calculate and rarely needs tracking.

**If you fly between the UAE and India often:** A miles card can make sense. Value miles using the fares you really buy, and redeem every year.

**If your points are close to expiry:** Redeem them now, even at statement credit value. Some value beats zero value.

**If your card has a redemption fee:** Redeem in larger batches, where your bank's rules allow. Avoid many small redemptions.

**If your true reward rate is below a simple cashback card's rate:** Move your everyday spending to the cashback card. Keep the rewards card only for its strongest category, if any.

**If you are an NRI planning to return to India:** Redeem UAE points before closing UAE cards. Plan Indian card usage so points do not expire unused.

## What Happens If You Ignore the Real Value of Points?

Most people never calculate the value of their points. The cost of this is easy to miss because it is spread across years.

Points expire quietly. Catalogue redemptions give less than cash.

Cards with fees stay in the wallet without earning them back. Forex fees eat rewards on foreign spending.

Individually, each loss is small. Together, they can mean years of paying for rewards you never really received.

There is also a subtler cost. The time and attention spent chasing points could go into decisions with a larger payoff. Your savings rate, your investment mix and your [real return](https://getbelong.com/blog/real-return-meaning/) after inflation matter far more over a decade.

## A Macro View: Why Reward Programmes Keep Changing

Step back and look at the bigger picture. Reward programmes in India and the UAE have been tightening.

We see it in the details already discussed. Caps on statement credit redemptions. Caps on points per statement.

Wider lists of excluded categories. Limits on how much of a voucher points can cover.

Banks fund rewards mainly from merchant fees. When costs rise or certain categories become less profitable, rewards on those categories shrink.

The lesson is simple. Your card's value is not fixed when you apply. Recalculate it every year, just as you would review any other financial product.

## Where This Fits in Your Wider Financial Life

Credit card rewards are the smallest lever in personal finance. Useful, but small.

The bigger levers are spending less than you earn, investing consistently and keeping costs low. Rewards help only when those basics are already in place.

For NRIs seeking market exposure to India, GIFT City funds are one route.

You can review the [Tata India Dynamic Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/tata-india-dynamic-equity-fund/) or the [Sundaram India Mid Cap Fund](https://getbelong.com/tools/gift-city-mutual-funds/sundaram-india-mid-cap-fund-gift/). These pages help you compare. They are not recommendations.

Resident Indians seeking global exposure can look at the [DSP Global Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/dsp-global-equity-fund/) or the [Edelweiss Greater China Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/edelweiss-greater-china-equity-fund/).

Both audiences can explore our [mutual funds platform](https://getbelong.com/products/mutual-funds/). Larger investors can review our [GIFT City AIF tool](https://getbelong.com/tools/gift-city-alternative-investment-funds/). To follow early signals for Indian markets, see our [GIFT Nifty tracker](https://getbelong.com/tools/gift-nifty/).

A word of caution. Never use card credit to fund [IPO applications](https://getbelong.com/products/ipo/) or trades, however attractive the reward points. Our explainer on the [GIFT City IPO](https://getbelong.com/blog/ipo/gift-city-ipo/) covers how these listings work.

The same applies more strongly to [futures and options](https://getbelong.com/products/futures-and-options/). Derivatives already involve leverage. Borrowed card money on top multiplies the risk.

If you earn and spend across two countries, your tax picture can get complex. Our [tax filing service](https://getbelong.com/services/tax-filing/) helps NRIs and returning Indians file correctly. You can review our regulatory credentials on our [licences page](https://getbelong.com/licenses/).

## Frequently Asked Questions (FAQ)

### How do I calculate the value of one credit card reward point?

Divide the net value you receive by the points you use. Net value is what you get, minus fees, taxes and cash top-ups. The answer changes with the redemption route you choose.

### Is statement credit a good way to redeem reward points?

It is usually the most flexible option, and often not the highest value. Treat it as your floor value. Use another route only if it clearly beats statement credit after all costs.

### How do I value air miles earned through my credit card?

Take the cash fare you would genuinely have paid and subtract taxes and fees on the award ticket. Divide by the miles used. Then multiply by the miles you get per card point.

### Do credit card reward points expire?

It depends on your bank. [SBI Card](https://www.sbicard.com/en/faq/rewards-information.page) says its points are valid for 24 months. [Emirates NBD](https://www.emiratesnbd.com/en/help-and-support/earning-plus-points) says its Plus Points do not expire while your card is active.

### Should I keep a rewards card with an annual fee?

Only if your true reward rate, plus benefits you actually use, exceeds the fee and a simple cashback baseline. Recalculate every year, because reward rules change often.

## Sources

- HDFC Bank, [Credit card reward points and redemption options](https://www.hdfc.bank.in/credit-cards/services/reward-points)

- HDFC Bank, [Credit card rewards redemption form](https://www.hdfc.bank.in/content/dam/hdfcbankpws/in/en/pdf/forms-centre/credit-cards/Rewards%20Redemption%20Form.pdf)

- SBI Card, [Reward points information FAQs](https://www.sbicard.com/en/faq/rewards-information.page)

- SBI Card, [Reward points redemption FAQs](https://www.sbicard.com/en/faq/reward-points-redemption.page)

- SBI Card, [Earning reward points FAQs](https://www.sbicard.com/en/faq/earning-reward-points.page)

- Axis Bank, [Important announcements on credit cards](https://www.axis.bank.in/important-links/credit-card/important-announcement-on-credit-card)

- Emirates NBD, [Earning Plus Points](https://www.emiratesnbd.com/en/help-and-support/earning-plus-points)

- Emirates NBD, [Redeeming Plus Points](https://www.emiratesnbd.com/en/help-and-support/redeeming-plus-points)


## Disclaimer

This article is for general educational purposes only. It is not personalised financial, credit or tax advice. All numerical examples are hypothetical and do not describe any specific card.

Reward earn rates, redemption values, fees, caps and expiry rules vary by bank and card, and change often. Always check your card's current terms before redeeming. Investments in mutual funds, AIFs, IPOs and derivatives are subject to market risks.

Read all scheme-related documents carefully before investing. Consult a qualified adviser for decisions specific to your situation.


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