How to Transfer Money from Credit Card to Bank: Free Methods!

Transferring money from your credit card to a bank account can be tricky and often comes with fees, but don’t worry! There are still several smart methods to do this, both direct and indirect. In this post, we’ll explore some quick ways to transfer money, discuss popular third-party apps like CRED and Amazon Pay, and even reveal a secret method to transfer funds for free.

Let’s break it down:

The Simple Method: Using Your Credit Card’s Customer Support

One of the easiest ways to transfer money from a credit card to a bank account is by contacting your bank’s customer service. Many banks allow this over the phone or through their mobile apps. Here’s how:

• Call your credit card provider and request a transfer.
• Ensure your credit card has sufficient unused balance.

You can also do this via the bank’s app by:

1. Selecting “Add Money” or “Transfer to Bank.”
2. Choosing “Credit Card” as the payment option.

Downsides:

Banks may charge a fee of 3-4% of the transferred amount. For example:

• SBI charges 2% or ₹199, whichever is higher.
• HDFC may charge up to 4%.

The Amazon Pay Method: Free and Rewarding!

If you hold an Amazon Pay ICICI credit card, you’re in luck! Not only can you transfer funds easily, but you can also earn rewards. Here’s how to use the Amazon Pay method:

1. Link your Amazon Pay ICICI card: Add the ICICI Amazon Pay credit card to your Amazon Pay wallet.
2. Add funds to your Amazon Pay wallet: Load money into your Amazon Pay wallet using the credit card.
3. Transfer to your bank account: Amazon Pay allows you to send the money from your wallet to your bank account.

Benefits:

• 2% cashback on the amount added using the Amazon Pay ICICI card.
• Free transfers: No charges for transferring funds from the Amazon Pay wallet to your bank account.

This method is ideal if you have the Amazon Pay ICICI credit card as it combines rewards with free transfers!

The CRED Method: Quick, but Costly

CRED is another popular app for paying bills and making credit card transfers. Here’s how you can use CRED for transferring funds:

1. Download and sign up on CRED: If you haven’t already, download the app and link your credit card.
2. Use the “RentPay” feature: CRED has a service called RentPay, where you can pay rent using your credit card, but instead of rent, some users transfer funds to their landlord (or themselves) to get money into a bank account.
3. Pay using your credit card: Use your linked credit card to make the payment.

Downsides:

• CRED charges a fee of around 1.5%-3%, depending on your card.
• Recently, RBI regulations have cracked down on rent payments via credit cards, so this method might not last long.

Third-Party Apps: Convenient but Not Always Free

Apps like PayTM, Mobikwik, and Bajaj Finserv also allow you to transfer money from your credit card to a bank account. But as mentioned earlier, these apps often come with service charges. Here’s a quick overview:

• PayTM: 2.65% fee.
• Mobikwik: 3% fee.
• Bajaj Finserv Wallet: 2% fee.

The fees can make these options less attractive unless they run temporary promotions. Additionally, RBI has imposed restrictions on some of these services, further limiting their use.

Indirect Methods: Paying Rent or Investing

If you’re looking for indirect ways, here are a couple of options:

• Rent payments: Apps like RedGiraffe allow you to pay rent using a credit card, though fees apply.
• NPS Contributions: Some credit cards allow payments to the National Pension System (NPS), but RBI has placed bans on this method recently.

The Secret Method: Free Transfer Using Digital Currency (CBDC)

Now, let’s reveal the secret, free method we mentioned earlier! This method involves using CBDC (Central Bank Digital Currency) and digital wallets. Here’s how to do it:

1. Download your bank’s CBDC app: Many banks have launched Digital Rupee wallets that store CBDC. These wallets work similarly to UPI apps.
2. Link your RuPay credit card: Ensure your RuPay credit card is linked to a UPI app. This allows you to add funds to your CBDC wallet using your credit card.
3. Transfer to your bank account: Once the money is loaded into your CBDC wallet, you can transfer it to your bank account for free.

Is It Safe?

This method is currently free and fully supported by the government, as they are promoting UPI and CBDC usage. However, it’s uncertain how long this loophole will stay open, so take advantage of it while you can.

Final Thoughts: Best Method for You

• Amazon Pay ICICI card users can enjoy 2% cashback and free transfers.
• CRED is convenient, but fees make it less appealing for regular use.
• The CBDC method is entirely free but may require some setup.

For those looking for hassle-free and cost-effective transfers, Amazon Pay and CBDC stand out as the best options. If you have any questions or want more tips and tricks for maximizing your credit card benefits, join us at CardReview.in or leave a comment below!