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Erika's Picks for Best Cashback Credit Cards
- Best for groceries and gas:
Blue Cash Preferred® Card from American Express - Best for rotating categories:
Chase Freedom Flex® - Best for dining:
Capital One Savor Cash Rewards Credit Card - Best welcome offer:
Discover it® Cash Back Credit Card - Best for flat-rate cashback:
Citi Double Cash® Credit Card - Best for customized rewards:
Bank of America® Customized Cash Rewards Credit Card - Best for online shopping:
Amazon Prime Visa
A cashback credit card does exactly what it sounds like: it lets you earn cash in return for any spending you do on the card.
There are lots of different types of cashback cards out there, but the best ones offer generous percentages of cashback on popular spending categories like travel and dining out. Many come with welcome offers, too.
The right card for you will depend on your spending habits and how involved you want to be in maximizing the rewards you earn.
Best for Groceries
Blue Cash Preferred® Card from American Express
Rewards Rate
- 6% cashback on purchases at U.S. supermarkets (up to $6,000 per year, then 1%) and on select streaming services
- 3% on U.S. gas station and transit purchases
- 1% on all other spending (cashback is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout)
Welcome Offer
Earn $250 statement credit after spending $3,000 in the first six months
Annual Fee
$0 intro annual fee for the first year, then $95 (rates and fees)
The Blue Cash Preferred® Card from American Express earns its highest rewards in three of the most common everyday expenses: gas, groceries, and streaming.
You'll earn 6% cashback at U.S. supermarkets (up to $6,000, then 1%) and 3% back on purchases at U.S. gas stations. You’ll also get 6% cashback on select streaming services, like Netflix and Disney+, and 1% on everything else.
The cashback is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
Amex has a buy-now-pay-later program called Plan It that you can use to manage your payments. This breaks down your purchases into smaller monthly payments. While Plan It is a nice perk, it can put you into debt too. Breaking purchases into smaller amounts can make it feel like you’re not spending as much as you really are.
One of the perks of cashback cards is that you can use the rewards to offset your regular monthly expenses. The Blue Cash Preferred® Card from American Express is a great choice for doing just that.
There's also no annual fee for the first year, meaning it won’t eat into your first-year earnings.
Best for Rotating Categories
Chase Freedom Flex®
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required) and travel purchases through Chase Travel℠
- 3% on dining and drugstore purchases
- 1% on all other spending
Welcome Offer
Earn $200 cashback after spending $500 in the first 3 months
Annual Fee
$0
The Chase Freedom Flex® has a 5% cashback rate on rotating categories that you activate each quarter (up to $1,500 in spending, then 1%).
However, unlike many rotating cashback cards that only offer 1% on all other spending, the Chase Freedom Flex® offers bonus cashback on dining, drugstore, and travel purchases through Chase Travel℠. This means it can still deliver value even if the quarter’s 5% categories don’t align with your spending.
The Chase Freedom Flex® is a great card to cash in on, especially if you’re looking to finance an upcoming trip.
That's because this card gets you access to Chase Travel℠. This is Chase’s rewards portal that allows you to use your cashback to book flights, hotels, and car rentals. Plus, you’ll earn 5% cashback on travel booked through Chase Travel℠ — which you can put toward a future trip.
The card also carries trip cancellation/interruption insurance as well as travel and emergency assistance.
Best for Dining
Capital One Savor Cash Rewards Credit Card
Rewards Rate
- 8% cashback on Capital One Entertainment purchases
- 5% on hotels and rental cars booked through Capital One Travel
- 3% on dining, entertainment, select streaming subscriptions, and grocery store purchases (excluding superstores)
- 1% on all other purchases
Welcome Offer
Earn a one-time $200 cash bonus after spending $500 in the first 3 months
Annual Fee
$0
In addition to cashback in spending categories like restaurants and grocery stores, the Capital One Savor Cash Rewards Credit Card offers 8% back on Capital One Entertainment purchases.
Considering this card is designed to reward dining out and entertainment purchases, you’ll want to be mindful of how much you charge each billing cycle. Rewards only really count when you’re able to pay off your balance each month. Interest charges will quickly overtake whatever cashback you earn, making your next dinner bill a lot more expensive.
If entertainment or late-night ramen delivery is part of your regular spending, you can earn significant rewards with the Capital One Savor Cash Rewards Credit Card. There’s also no annual fee, meaning all the rewards go straight to you.
Cashback rewards can be used to book travel or redeemed as a statement credit or to make purchases directly on Amazon. The Capital One Entertainment benefit also gives you access to exclusive concerts and live shows.
Best Welcome Offer
Discover it® Cash Back Credit Card
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required)
- 1% on everything else
Welcome Offer
Discover Cashback Match™ will double all cashback earned in the first 12 months
Annual Fee
$0
The Discover it® Cash Back Credit Card has rotating categories that allow you to earn 5% cashback on up to $1,500 in purchases (after that, you earn just 1%). Discover’s rotating categories require activation each quarter and range from streaming services and digital wallets to wholesale clubs and restaurants.
Outside of the featured quarterly categories, all other purchases are eligible for 1% cashback. Instead of a welcome bonus, Discover offers a dollar-for-dollar match of all cashback you earned by the end of your first year. So, if you max out your bonus categories for a total of $300 cashback in your first year, Discover will give you a $300 bonus on top of that.
While the category rate offers good returns, the standard cashback offer for everyday purchases is low. You also have to stay on top of the different categories, plan your spending accordingly, and activate the categories for each quarter.
Discover’s Cash Back card is a great card to use because you can earn rewards on things you’re already planning to spend money on, like groceries. Plus, 5% is one of the highest cashback offers you’ll find for cards that don’t charge an annual fee.
Points you earn can be redeemed as statement credits toward your balance or used on partner websites like Amazon.
Best for Flat-Rate Cashback
Citi® Double Cash Credit Card
Rewards Rate
- Up to 2% on all purchases: 1% when you buy, and another 1% when you pay your balance
- Limited-time offer of 5% total cashback on hotel and car rentals booked on the Citi Travel℠ portal through 12/31/24
Welcome Offer
Earn $200 cashback after you spend $1,500 in the first 6 months
Annual Fee
$0
The Citi Double Cash Credit Card gives you up to 2% back on every purchase with no limits on how much you can earn. You'll earn unlimited 1% on all purchases, and then an additional 1% when you pay them off.
Cashback points are called ThankYou Points and are earned for every dollar you spend. You can redeem points as a statement credit, a direct deposit to your bank account, a check in the mail, or use them on a partner website like Amazon. As long as you maintain an account with Citi, your points will never expire.
The main drawback of this card is that offers for rotating categories are limited. If you dine out a lot or subscribe to streaming services, you might want to look for a card with bonus rewards rates in those categories.
If you’re new to cashback rewards and don’t know where to begin, a card with a solid flat-rate offer is a good place to start.
Also, there’s no cost to holding a Citi Double Cash card, which makes it good to have alongside other reward cards in your wallet.
Best for Custom Rewards
Bank of America® Customized Cash Rewards Credit Card
Rewards Rate
- 3% cashback on a category of your choice (including online shopping, dining, travel, gas, EV charging stations, drugstores, home improvement or cable, streaming, internet, and phone services)
- 2% at grocery stores and wholesale clubs (up to $2,500 combined spending in bonus categories each quarter, then 1%)
- 1% on all other spendings
Welcome Offer
Earn $200 cash after spending $1,000 in the first 90 days
Annual Fee
$0
The Bank of America Customized Cash Rewards card offers a tiered reward program with a custom category to earn the highest cashback. You’ll earn 3% cashback in a category of your choice, including gas, online shopping, dining, travel, drug store purchases, and home improvement. After you select your category, you’ll earn 2% cashback at grocery stores and wholesale clubs, with 1% on every other purchase.
Note that there is a spending cap on the 2% and 3% bonus categories — once you hit $2,500 in combined spending for the quarter, your rewards rate drops to 1% across the board. Rewards earned through your Customized Cash Rewards card never expire.
Tiered cards can be tricky to manage. While you choose which category to apply the 3% cashback to, you’ll want to be strategic about it. Other cards offer better rewards in the dining and travel categories, but few cards can beat 3% cashback for things like gas or home improvement needs. Do the math to see what categories you'll benefit most from.
When you're looking for a cashback credit card, you want to consider your spending habits to see which card gives you the most bang for your buck.
The Bank of America Customized Cash Rewards card allows you to do exactly that since you can tailor your rewards and maximize how much you can earn in categories where you spend the most each month.
Best for Online Shopping
Amazon Prime Visa
Rewards Rate
- 5% cashback at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership (3% without a membership)
- 2% at gas stations, on local transit and commuting, and at restaurants
- 1% on everything else
Welcome Offer
Receive a $100 Amazon Gift Card upon approval with an eligible Prime membership
Annual Fee
$0
If you’re already an Amazon Prime member, the Amazon Prime Visa can help you earn rewards from online shopping.
The Amazon Prime Visa is issued in partnership with Chase. You'll earn cashback on everyday expenses, including purchases at Amazon.com and Amazon Fresh, groceries from Whole Foods Market, purchases at gas stations and local transit as well as Chase Travel purchases.
The Amazon Prime Visa has a generous mix of cashback categories — especially for a no-annual-fee card. Plus, as a welcome offer, you’ll receive a $200 Amazon Gift Card upon approval — no spending required.
It also comes with travel perks like lost luggage reimbursement and baggage delay insurance.
How To Choose a Cashback Credit Card
Not all cashback cards are created equal. Some will provide better rewards than others. Choosing the right one for you depends on your current spending habits.
Evaluate your spending
Look at how the different cards fit into your existing spending habits. You can do this by categorizing your expenses to see where you’re most likely to earn rewards.
For example, if a large portion of your monthly budget goes to groceries, the Blue Cash Preferred® Card from American Express might be a good fit for you. If you regularly dine out and attend concerts with friends, the would probably suit you better.
Compare reward programs
There are three types of rewards to consider: flat-rate, rotating category, and tiered.
Rotating categories can provide higher rewards in unique categories, but you’ll have to keep track of them and they may not always match your spending interests.
If you’re looking for consistent rewards, look for cards with bonus categories you tend to spend the most in, or a flat-rate cashback card with at least 1.5% back on all spending.
Find a great welcome offer
Many cashback rewards cards come with lucrative welcome bonuses. You can earn a one-time cash bonus by hitting a spending requirement, usually in the first three to six months of opening the account.
This can be a great way to get even more rewards from your card — just make sure you can easily hit the spending requirement in time with your usual spending alone. Spending extra just to earn a cash bonus is generally unwise, especially if you can’t pay it off and will then owe interest on the balance.
Watch out for fees
There are a lot of great cashback credit cards that don’t have an annual fee. But that doesn’t mean all cashback cards are completely fee-free. In addition to annual fees, you’ll want to pay attention to balance transfer fees and foreign transaction fees.
An annual fee is not inherently a bad thing; typically, the cards with the best rewards also come with the highest fees. Do the math to make sure it works for you and your budget before adding a fee-bearing card to your wallet.
Know your style
Remembering rotating categories and keeping track of different tiers of rewards can be a lot of work. If you’re a pretty dynamic spender, then this type of cashback card could be right up your alley.
But if you’re new to cashback credit cards or simply don’t want your wallet to get too busy, look for a competitive flat-rate card or one with consistent tiered rewards. This way you can earn rewards on your spending without having to stay on top of rotating categories or activation deadlines.
Types of Cashback Credit Cards
There are three main types of cashback cards: flat rate, rotating category, and tiered. Choosing the right type of cashback card for you will help you maximize your earnings.
Flat rate
A flat-rate cashback card gives you the same return on your spending no matter what it is. These cards typically earn 1% to 2% cashback. They are generally easier to manage because you know the amount of cashback you’re earning for each purchase.
The downside is that you won’t be able to maximize the amount of cashback you can earn in certain categories, like dining out. Many flat-rate cards don’t charge an annual fee, though, which makes them convenient regardless of how often you use them.
Rotating categories
A cashback card with rotating categories can give you more bang for your buck. Most offer 5% cashback on categories that change each quarter. To earn the full cashback reward, you have to activate the rotating category and use your card to make purchases in that category.
Rotating category cards are a great way to maximize rewards, however, it might only make sense to use the card for certain categories or part of the year.
Tiered
Tiered cards typically come with a flat rate for all purchases and elevated rates for specific fixed categories. For example, you might earn 3% for dining out, 2% for groceries, and 1% for everything else. Some cards even allow you to choose the category that earns the highest tier of rewards.
The downside with tiered cards is that they can be a lot of extra work to manage. You’ll have to pay attention to the reward structure and develop a strategy for how to use the card. This can get complicated if you have multiple cashback cards, all with different ways to earn rewards.
Pros and Cons of Cashback Credit Cards
Whether it’s trips to the grocery store, monthly streaming subscriptions, or tickets to a Taylor Swift concert, the right cashback card can put money back in your wallet. But they’re not without downsides.
Pros
- Money in your pocket: Earn cashback on purchases you were already planning to make.
- Redemption options: You can cash in via statement credits, transferring to shopping partners, or paid out to you via check.
- Sign-up bonuses: Many cashback cards offer additional cash bonuses when you first sign up.
Cons
- Earning limits: Check the fine print to see if there's a limit to how much you can earn.
- Minimal travel rewards: Most cashback cards are focused exclusively on putting cash in your pocket or a credit on your statement, and may not offer travel perks like insurance or lounge access.
Bottom Line: How Do I Pick the Best Cashback Card?
Choosing the best cashback card for you depends on your spending habits. Take a look at your current bank and credit card statements to see which categories you spend the most money in. Then evaluate the cashback cards on the market.
If your goal is to get the most cashback, look for a card with a rotating category that aligns with your spending. If you prefer simplicity, look for a high flat-rate cashback card instead.
Frequently Asked Questions
Aside from choosing a card that fits your spending habits, there are other ways to maximize the value you can get from cashback credit cards.
Your credit card can be combined with shopping portals like Rakuten or Capital One Shopping. These sites will give you a percentage of cashback on your purchase just by shopping through their platform. You can earn rewards from your cashback credit card and from the platform you’re shopping on. Depending on the retailer, you could double or even triple your rewards.
Most regular consumer purchases, like groceries and gas, qualify for cashback rewards. That being said, there are some limitations. You won’t earn cashback for cash advances or balance transfers. Buying cryptocurrency or foreign currency when traveling abroad might also be excluded.
While rewards policies used to vary in providing cashback for spending with a digital wallet, the increased popularity of this payment option means most credit card issuers will offer rewards on eligible spending made through your digital wallet.
There are several different ways to redeem rewards. One of the easiest ways is to opt for a statement credit on your bill. You can use this as a way to reduce the balance you’ll owe on your payment date.
Many offer redemption as a direct deposit to a bank account, a check, gift cards, or directly to a partner site. Unlike credit card points, which can vary based on redemption, most cashback redemption options have the same value.
Kind of, but not really. Instead of earning cash that you can physically put in your wallet, cashback cards generally issue statement credits. These credits can be put toward your account balance to offset purchases.
You can also redeem cashback rewards as cash equivalent purchases. This is common for booking travel. Instead of paying for a flight out of pocket, you can pay using your points instead. You still benefit from purchasing the flight but you’re not paying for it in dollars.
There are some ways you can get cash from your rewards if you want. You may be able to withdraw your cashback rewards from an ATM, a paper check, or transfer to PayPal.
Technically, cashback rewards are not taxable. In order to receive cashback, you have to spend money. This means rewards are considered discounts on pre-existing purchases rather than taxable income.
If there's no minimum spending for a sign-on bonus, any received cash compensation could potentially be taxed as unearned income.
The average cashback reward on a flat-rate credit card is 1% to 2%. Anything above that is good!
Most rotating category cards offer 5% cashback for specific categories. Some tiered credit cards offer fixed bonus rates of 5% or even 6%. Sync your spending with a 5% reward card to earn more than with a 1% or 2% flat rate card. That said, 5% cashback rates generally have spending caps that limit how much you can earn in that category.
