How to Maximise Your Earnings from Bank Loyalty Programs

Every day you use your bank account for different financial tasks. From paying bills and making daily purchases to booking fixed deposits and transferring funds, your bank account simplifies your financial life. Bank loyalty programs are designed to reward your loyalty for ongoing engagement with the bank. 

Your bank monitors your banking activities, such as account balances, transactions, or credit card usage, and then rewards you accordingly. You can redeem the given rewards for different gifts, vouchers, discounts, or personalised offerings.

Even though bank loyalty programs reward you for your banking activities, some clever strategies can help you earn even more. Find out how.

1. Understand your reward structure

Learn how your bank’s loyalty program works. Many programs offer cashback, points, and premium privileges for various banking activities. These may include spending through debit cards, keeping a minimum average balance, booking FDs, or using digital banking services. 

Analyse the earning rates, bonus categories, redemption options, and any limitations, such as expiry dates. This understanding can help you get the most out of your rewards.

2. Select the best loyalty rewards programs only

It is wise to opt for INDIE YOUniverse by IndusInd Bank, a three-tier loyalty program that offers premium rewards. You get to earn INDIE Gems on purchases from your favourite brands each month. One INDIE Gem is equal to ₹1, and there is no cap on the number of Gems you can collect.

You unlock more rewards and benefits as you progress through the following three tiers:

• INDIE Star Account
• INDIE Superstar Account
• INDIE Megastar Account

Simply open an INDIE Savings Account through a 100% digital process. After that, maintain the required average quarterly balance to progress from the INDIE Star Account to the INDIE Mega Star Account. Alternatively, you can decide to start your INDIE Savings Account journey straight from the Megastar tier by doing an initial funding of ₹50,000 or more during the account opening. As you reach higher tiers, your rewards grow larger. For investors, INDIE can also be used as a versatile digital investing app to manage various assets and securities from a unified platform.

3. Consolidate banking activities

Use your bank’s services for as many of your daily transactions as possible. This includes bill payments, online transfers, grocery shopping, and even routine purchases. The concept is simple: the more you engage with the bank’s services, the more rewards you will accumulate.

This strategy offers dual benefits, i.e., simplified financial management and an increased rate of reward accumulation.

4. Shop online smartly

Many banks have their shopping portals or partner networks. These portals collaborate with several retailers and services to offer additional points, cashback, or discounts when you buy through their links. Thus, before making any online purchase, check if your bank’s online portal has available offers. 

By using these portals for your regular shopping, you can easily increase your reward points, which can later be redeemed for various benefits like travel, merchandise, or gift cards. Also, ensure you always compare which platforms provide higher rewards through your bank’s loyalty program.

5. Structure your spending 

Optimise your spending to increase earnings from bank loyalty rewards and programs. For instance, if your bank offers extra points for groceries or fuel, always use your card for these expenses. This way, you can get more value and earnings without changing your purchasing habits.

It is equally crucial to spend within your budget and avoid nonessential purchases just to earn points. Also, review your bank’s offers and promotions from time to time, as they may provide opportunities to earn additional points for specific transactions.

6. Refer friends and family

Many loyalty programs offer referral bonuses. By referring people to your bank or its products, you can earn more points. Make sure they are likely to find value in the services and are more inclined to sign up as this can often be a criteria for earning bonus points.

Key takeaways 

By understanding the loyalty program details, structuring your spending, capitalising on promotions, and using your points wisely, you can increase the value you get from your bank. It is also beneficial to remain updated about the changes in the program and modify your strategies as needed. 

By following these tips for your daily spending and planned purchases, you can turn routine banking activities into a source of extra savings.