During festive sales, shoppers are often tempted by offers such as Zero-Cost EMI, cashback, and reward points. While all three seem attractive, the actual savings vary depending on your purchase type, payment method, and financial planning.
Understanding which offer maximizes value can help you save more and shop smarter this festive season.
1. Zero-Cost EMI
How It Works: The purchase cost is split into monthly installments without additional interest.
Pros:
No upfront financial strain.
Enables buying big-ticket items without depleting savings.
Maintains liquidity for other expenses or investments.
Cons:
Sometimes includes processing fees that reduce savings.
Requires timely payments to avoid penalty charges.
When It Saves You Money:
Best when the EMI truly has 0% interest and minimal fees.
Ideal if you prefer to spread payments instead of paying upfront.
2. Cashback Offers
How It Works: A percentage of your purchase is credited back to your account or wallet.
Pros:
Immediate reduction in effective purchase price.
Often combined with bank promotions for extra cashback.
Cons:
Some cashback requires minimum spend or specific payment modes.
May take days to reflect in your account, delaying actual savings.
When It Saves You Money:
Best for small to medium purchases where cashback is instant or guaranteed.
Works well if the product doesn’t qualify for additional discounts.
3. Reward Points
How It Works: You earn points for every purchase, which can be redeemed for discounts, vouchers, or products.
Pros:
Accumulates value for future purchases.
Encourages smart use of credit card benefits.
Cons:
Points may expire or have redemption restrictions.
Value of points is often less than their nominal equivalent.
When It Saves You Money:
Best if you redeem points wisely during festive sales.
Works well for frequent shoppers planning multiple purchases.
Smart Strategy: Choosing the Right Offer
High-Value Items: Use Zero-Cost EMI to avoid upfront cash crunch.
Small to Medium Purchases: Go for instant cashback, which directly reduces your expense.
Frequent Purchases: Utilize reward points to accumulate benefits for future discounts.
Check Terms & Conditions: Always read fine print for fees, expiry, or restrictions.
Combine Offers: Some sales allow EMI with cashback or reward points, maximizing savings.
FAQs
Q1: Is Zero-Cost EMI truly free?
Mostly yes, but always check for processing fees or hidden charges that may apply.
Q2: Which is better, cashback or rewards?
Cashback is immediate and guaranteed, while rewards are long-term benefits; choose based on your spending pattern.
Q3: Can I combine Zero-Cost EMI with cashback?
Yes, many festive sales allow EMI payments with additional cashback or reward points, increasing overall savings.
Q4: How do reward points work?
Points accumulate per transaction and can be redeemed for discounts, gift cards, or future purchases as per the issuing card or platform rules.
Q5: How do I calculate actual savings?
Compare the effective purchase cost after discounts, cashback, reward redemption, and any EMI fees to determine true savings.
Conclusion
Each festive offer—Zero-Cost EMI, cashback, and reward points—has its own advantages.
Zero-Cost EMI: Ideal for high-value purchases and maintaining cash flow.
Cashback: Best for instant savings on smaller purchases.
Reward Points: Useful for long-term savings if redeemed wisely.
By understanding the terms, combining offers wisely, and matching them to your spending habits, you can maximize savings while enjoying the festive season without financial stress.
Published on : 20th October
Published by : SMITA
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