When most people hear the phrase “credit card rewards,” their minds immediately turn to cash back rewards. And why not? Flip on the TV, navigate to your favorite website, or drive around your hometown and you’re bound to see an ad for a cash back credit card before long.
Cash back credit cards are popular because they provide tangible, easy-to-understand benefits. Who doesn’t like getting a credit on their monthly credit card statement – or, better yet, actual cash deposited into the account of their choice?
Not all cash back credit cards are created equal though.
Some offer the same cash back rate on all purchases. Others offer higher cash back rates on certain spending categories, such as groceries or gas, and lower rates on everything else. Still others offer bonus cash back on spending categories that rotate every quarter. A few accrue cash back on purchases and monthly payments. And some cash back cards even hew to hybrid models, with cash back on certain spending categories and different types of rewards (such as airline miles) on others.
You’ll find each type of card on this list of the best cash back cards available to U.S. consumers today. Keep in mind that most cash back credit cards require applicants to have very good to excellent credit – usually indicated by a credit score above 700, and sometimes even higher. If you don’t meet that threshold, work on building your credit before applying.
6% Cash Back at Supermarkets; 3% at Gas Stations and Department Stores; 1% Elsewhere; Up to $350 Sign-up Bonus
If you love the supermarket, you’ll love the Blue Cash Preferred Card from American Express. You get 6% cash back on all supermarket transactions, up to a $6,000 annual spending limit. Once you hit $6,000, you get 1% back on supermarket purchases, with no upper limit. There’s no spending limit on the gas station and department store categories – you get 3% cash back on every $1 spent in those places, period. And you get 1% cash back on all other purchases, with no limits.
Cash back comes as a statement credit. However, there’s a significant drawback: a $95 annual fee.
Another smaller drawback of the Blue Cash Preferred card is American Express’s restrictive definition of “supermarket.” Superstores like Walmart, wholesale clubs like Costco, and alcohol retailers aren’t considered as supermarkets for this card’s purposes. The annual fee does cut into your earning potential somewhat – but since the 6% supermarket cash back doubles what most competing cards offer, you’re still likely to come out ahead if you take full advantage of this category.
If you’re struggling to meet your $6,000 annual supermarket spending limit with food and dry goods purchases alone, make up the difference by purchasing other merchants’ gift cards at the supermarket checkout counter. It’s like getting an immediate 6% discount at your favorite restaurants, retailers, and e-commerce websites.
3% Cash Back at Supermarkets; 2% at Gas Stations and Department Stores; 1% Elsewhere; Up to $300 Sign-up Bonus
The Blue Cash Everyday Card from American Express gives you ample cash back on everyday, hard-to-avoid purchases: food, staples, fuel, clothing, and home goods. You get 3% cash back on supermarket purchases, up to the $6,000 annual limit. After you hit the limit, you get 1% cash back on supermarket purchases, with no spending cap. 2% cash back at gas stations and department stories is unlimited, as is 1% cash back everywhere else. Your cash back comes as a statement credit.
Note that big box superstores such as Target, wholesale clubs like Sam’s Club, and alcohol retailers don’t count as “supermarkets,” according to American Express.
Unlimited 2% Cash Back on All Purchases
The Fidelity Rewards Visa Signature Card is a great addition to any Fidelity customer’s wallet. This no-annual-fee card earns an unlimited 2% cash back on every purchase, every day. Its cash rewards accrue through the Fidelity Rewards program – you earn 2 Fidelity Rewards points per $1 spent.
You can redeem your accumulated Fidelity Rewards points on a 1-to-1 basis for cash deposits into a wide range of Fidelity accounts, including brokerage accounts, 529 College Savings Plans managed by Fidelity, Fidelity Cash Management accounts, and certain retirement accounts.
With no annual fee, no spending restrictions, and no hoops to jump through (such as category activation requirements), this is an ideal card for people who spend in a wide range of categories and love to maximize their cash back earning power. However, it’s not as useful for people who have no interest in opening a Fidelity account.
1.5% Cash Back on All Purchases; Sign-up Bonus Worth $150 + $25
Chase Freedom UnlimitedSM is similar to the flagship Chase Freedom® Card, but with an important distinction: Instead of flat 1% cash back and rotating 5% cash back categories with quarterly spending caps, it simply earns an unlimited 1.5% on all purchases. You can redeem for virtually anything, in any amount, at Chase’s Ultimate Rewards® portal – including cash equivalents, merchandise, and travel.
Chase Freedom UnlimitedSM has a great (and sometimes overlooked) perk for loyal Chase credit card customers. If you also have the Chase Ink Plus ($95 annual fee) business card or the Chase Sapphire Preferred ($95 annual fee) travel rewards card, you can transfer points earned through Chase Freedom UnlimitedSM to those accounts. You can then transfer those points at a 1-to-1 ratio to approximately 10 frequent traveler programs, or redeem them for travel purchases through the Ultimate Rewards® portal and receive a 20% bonus (for instance, boosting the value of a 50,000-point redemption to $625). However, keep in mind that you need to apply for Ink Plus or Sapphire Preferred – and remember, having Chase Freedom UnlimitedSM doesn’t necessarily qualify you for those cards.
5% Cash Back in Rotating Categories Every Quarter; 1% on Everything Else
All purchases made with the Chase Freedom® card earn 1% cash back, with no caps or restrictions, and purchases up to $1,500 in quarterly rotating categories earn 5% cash back (e.g., gas stations and local commuter transportation for Q1 2017). Limited-time promotions occasionally push the card’s earning power even higher – for example, in the fourth quarter of 2015, purchases at Amazon, Zappos, Audible, and Diapers.com earned 10% cash back up to the $1,500 limit.
Chase Freedom® actually accumulates Chase Ultimate Rewards® points, a versatile spending currency that is usually worth $0.01 per point. Spending in the 1% cash back category earns 1 point per dollar, while spending in the 5% category earns 5 points per dollar. Once you accumulate 2,000 points, you can redeem for cash back (with each point being worth $0.01), deliverable as a statement credit, bank account deposit, or gift card at select retailers (including Amazon). You can also redeem for a wide variety of purchases, including travel and general merchandise, through Chase’s Ultimate Rewards® portal.
One small drawback of Chase Freedom®: You have to manually activate your 5% cash back each quarter. If you don’t do so by the middle of the last month of that quarter, you forfeit the 5% cash back opportunity.
5% Cash Back in Rotating Categories Every Quarter; 1% on Everything Else; Double Cash Back Your First Year
Discover it is one of several quality cards from Discover. All purchases earn 1% cash back, with no spending caps or restrictions. Like the Chase Freedom® card, purchases in quarterly rotating spending categories earn 5% cash back, up to a $1,500 quarterly limit across all active categories. Example spending categories include department stores, gas stations, restaurants, movie theaters, home improvement stores, and Amazon.com. You need to manually activate the 5% cash back in your account each quarter.
At the end of your first year as a cardholder, Discover automatically doubles all the cash back you earned over the previous 12 months. You can redeem your cash in any amount as a statement credit, bank account deposit, check, or Amazon purchase credit.
5% Cash Back in Rotating Categories Every Quarter; 1% on Everything Else; Double Cash Back Your First Year; 10% off NHL Merchandise
The NHL Discover it card is the official credit card of the National Hockey League. On the cash back rewards front, it’s the same as the flagship Discover it: You get 1% cash back on all purchases, with no spending limits, plus 5% cash back on purchases in quarterly rotating categories up to $1,500 per quarter. Like the other it cards, Discover doubles cash back earned during the first year of your membership.
The main distinguishing feature of the NHL Discover it card is a permanent 10% discount on purchases made with the card at shop.nhl.com. You can also customize your card’s face with the logo of your favorite pro hockey team.
2% Cash Back on Dining and Gas; 1% Cash Back on Everything Else; Double Cash Back Your First Year
Discover it Chrome is a solid card for anyone who spends money on gas and restaurant meals. Dining and gas purchases with the card earn 2% cash back, up to $1,000 per quarter. After you hit your quarterly limit, you earn 1% on dining and gas purchases, with no spending caps. You also earn an unlimited 1% on all other purchases. Quarters begin January 1st, April 1st, July 1st, and October 1st.
As with the flagship Discover it, Discover it Chrome automatically doubles all the cash back you earn during your first year. You can redeem your cash in any amount as a statement credit, bank account deposit, check, or Amazon purchase credit.
1.5% Cash Back on All Purchases; $100 Sign-up Bonus
Capital One Quicksilver complements a host of other Capital One financial products, including the Capital One 360 banking platform. Its cash back perk is attractive and easy to understand: 1.5% cash back on all purchases, everywhere, with no spending caps or rotating categories. You can redeem cash back for a statement credit, bank account deposit, or gift card.
If your spending spans a wide range of categories, this is one of the better general-purpose cash back cards. However, it’s not as strong a choice if you’re looking to maximize your spending in specific categories, such as grocery purchases or travel.
1.5% Cash Back on All Purchases; Lower Credit Requirements
Capital One QuicksilverOne is very similar to the Quicksilver card. You get 1.5% on all purchases, all the time, with no spending limits or rotating categories. Cash redemption procedures are the same, as are the card’s general benefits and restrictions. The biggest differences are a modest annual fee ($39), no sign-up bonus, and a higher variable APR for the QuicksilverOne card.
The main benefit of the QuicksilverOne is its relatively lax credit history requirements. Whereas the Quicksilver card (like most cash back credit cards) requires excellent credit, QuicksilverOne requires merely “average” credit, though Capital One doesn’t specify exactly what this means.
The flip side of this is that most new cardholders don’t qualify for high credit limits. If you’re able to make your monthly payments on time for five consecutive months, Capital One approves you for a higher credit line.
1% Cash Back on All Purchases; Additional 1% Cash Back on All Balance Payments at or Above Minimum Payment
The Citi Double Cash Card literally pays you twice. You get 1% cash back on all purchases, with no spending limits or spending categories to worry about. You also get 1% cash back on all monthly payments, regardless of whether you carry a balance, as long as you keep up with your minimum payments.
There’s never a cap on how much cash you can earn with the Citi Double Cash Card. Once you accumulate at least $25 in cash back rewards, you’re free to redeem by paper check, gift card, or statement credit, but not direct deposit.
3% Cash Back on Gas; 2% on Grocery Store Purchases; 1% on Everything Else; $100 Sign-up Bonus
Like American Express’s Blue Cash cards, the BankAmericard Cash Rewards Credit Card rewards you nicely for everyday purchases. You get 3% cash back on gas buys and 2% on grocery store purchases, up to a $2,500 quarterly limit. The 1% cash back on everything else is without limit.
You can redeem your cash back as a statement credit, paper check, Bank of America account deposit (but not a non-BoA account deposit), or Merrill Lynch Cash Management Account deposit. If you’re an existing Bank of America customer, you automatically get a 10% cash bonus every time you redeem your cash back into a Bank of America account.
If you’re a Bank of America Preferred customer, your bonus ranges from 25% to 75%, depending on your membership level. Preferred status requires you to keep at least $25,000 in a Bank of America deposit or investment account, so it’s not suitable for everyone.
The BankAmericard Cash Rewards Credit Card is great if you use your card primarily for staple purchases. If you spend more than $2,500 per quarter on gas or groceries and want to maximize your cash back power, consider one of the Blue Cash cards.
3% Cash Back on Gas; 2% on Grocery Store Purchases; 1% on Everything Else; $100 Sign-up Bonus; Automatic Susan G. Komen Fund Donations
Bank of America’s Susan G. Komen Credit Card is basically the BankAmericard Cash Rewards Credit Card, including charitable donations to the Susan G. Komen fund. The same 3% cash back on gas buys and 2% on grocery store purchases (up to a $2,500 quarterly limit) applies. There’s no limit on your ability to earn 1% cash back on all other purchases.
As part of its partnership with the Susan G. Komen fund, Bank of America pays the organization $3 for every new card issued and activated within 90 days. It also automatically gives 0.08% of each card transaction’s value to the Komen fund, the largest breast cancer organization in the U.S., through December 2020.
This card’s redemption guidelines are the same as the BankAmericard Cash Rewards Card: statement credit, paper check, Bank of America account deposit (with 10% bonus), or Merrill Lynch deposit. You can redeem your cash back as a statement credit, paper check, Bank of America account deposit, or Merrill Lynch Cash Management Account deposit. The 25% to 75% bonus for Preferred customers applies as well.
The MLB BankAmericard Cash Rewards MasterCard Credit Card is nearly identical to BankAmericard Cash Rewards. The same cash back rules, redemption procedures, and bonuses for Bank of America account deposits apply. However, you have the added benefit of decorating the card with the MLB team logo of your choice.
One drawback relative to other sports-themed credit cards is that there are no discounts on team merchandise. For instance, one of the best things about the NHL Discover it card is the permanent 10% discount on all merchandise purchased through the NHL’s ecommerce portal – but you don’t get that with this card.
1.5% Cash Back on All Purchases; 5% Redemption Bonus; $100 Sign-up Bonus
Like the Capital One Quicksilver and QuicksilverOne cards, the Barclaycard CashForward World MasterCard earns 1.5% cash back on all purchases, with no spending caps or rotating categories. It also offers a 5% redemption bonus that automatically boosts redeemed cash back by 5% – so a $100 redemption becomes $105. This essentially increases the effective cash back rate to 1.575%. You can redeem for a statement credit, gift card, or bank account deposit.
One significant drawback is the rather high cash back redemption limit. Whereas most other cash back cards allow you redeem in amounts greater than $10 or $20, and sometimes in any amount, the Barclaycard CashForward World MasterCard requires at least $50 before you can redeem.
5% Cash Back on 2 Quarterly Categories, Up to $2,000 Spending; Unlimited 2% Cash Back in 1 Quarterly Category
The U.S. Bank Cash+ Visa Signature Card is a powerful, no-annual-fee cash back card with above-average earning power in a variety of common spending categories.
This card earns 5% cash back in 2 quarterly categories of your choice, up to $2,000 in combined quarterly spending. 5% options vary from quarter to quarter, but typically include department stores, fast food outlets, electronics stores, movie theaters, and car rental companies. The card also earns an unlimited 2% cash back in a single category of your choice. 2% categories tend to be broader, and typically include gas stations, grocery stores, and restaurants. Finally, this card earns an unlimited 1% cash back on all 5% category spending above the quarterly spending limit, and on purchases not included in one of the three selected spending categories.
One minor – but notable – drawback of this card is that you need to activate your 5% and 2% categories each quarter. If you fail to do so, you forfeit their earnings above the 1% baseline cash back rate.
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