What Kind of Savings Can You Get on Cashback Cards?

Cashback cards are a popular choice for those looking to get a little extra from their everyday spending. These credit cards offer a percentage of your purchases back in the form of cash rewards, which can accumulate over time to provide significant savings. In this article, we'll explore the various types of savings you can achieve with cashback cards, highlight some of the best deals, and provide insights into the top cashback credit cards available today.

Understanding Credit Cards With Cash Back

Credit cards with cash back are designed to reward cardholders with a percentage of their spending. Typically, these rewards range from 1% to 5%, depending on the card and the type of purchase. Cashback rewards can be redeemed in various ways, such as statement credits, checks, or direct deposits into your bank account.

Types of Cashback Credit Cards

1. Flat-Rate Cashback Cards: These cards offer a consistent cashback rate on all purchases, such as 1.5% or 2% back on every transaction.
2. Tiered Cashback Cards: These cards provide different cashback rates for different types of spending. For example, you might earn 3% back on groceries, 2% on gas, and 1% on all other purchases.
3. Bonus Category Cashback Cards: These cards offer higher cashback rates in specific categories that change periodically, such as 5% back on rotating categories like dining or travel.
4. Customized Cashback Cards: These cards allow you to choose your own bonus categories to maximize your cashback based on your spending habits.

Best Credit Card Deals for Cash Back

Finding the best credit card deals for cash back requires comparing various cards to see which offers the highest rewards for your spending patterns. Some cards come with sign-up bonuses, introductory cashback rates, and other perks that can enhance your savings. Here are some of the top deals to consider:

Top 5 Cash Back Credit Cards

1. Chase Freedom Flex℠Offers 5% back on rotating quarterly categories (up to $1,500 in combined purchases per quarter), 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstore purchases, and 1% on all other purchases.Introductory offer: $200 bonus after spending $500 in the first three months.
2. Citi Double Cash CardEarns 2% cash back on all purchases: 1% when you buy and 1% when you pay.No categories to track or activate.
3. Discover it® Cash BackProvides 5% cash back on rotating categories each quarter (up to $1,500 in purchases) and 1% on all other purchases.First-year cashback match: Discover will match all the cash back you’ve earned at the end of your first year.
4. American Express Blue Cash Preferred® CardOffers 6% cash back on U.S. supermarkets (up to $6,000 per year, then 1%), 6% on select U.S. streaming subscriptions, 3% on transit and U.S. gas stations, and 1% on other purchases.Introductory offer: $300 statement credit after spending $3,000 in the first six months.
5. Citi Custom Cash℠ CardEarns 5% cash back on your top eligible spend category each billing cycle (up to $500 spent), 1% on all other purchases.No need to select categories; it adapts to your spending habits.

Special Mention: Citi Cash Back Card

The Citi Cash Back Card is a versatile option for those who want a straightforward rewards structure. It provides competitive cashback rates and easy redemption options, making it an excellent choice for various spending needs.

Cash Bonus Credit Cards

Cash bonus credit cards offer significant one-time rewards when you meet certain spending thresholds within a specified period. These bonuses can range from $100 to $500 or more, providing an immediate boost to your cashback earnings. Here are a few notable examples:

1. Wells Fargo Active Cash℠ CardEarn a $200 cash rewards bonus after spending $1,000 in purchases in the first three months.Offers unlimited 2% cash back on all purchases.
2. Capital One SavorOne Cash Rewards Credit Card$200 cash bonus after spending $500 on purchases within the first three months.Earn 3% cash back on dining, entertainment, popular streaming services, and grocery stores, and 1% on all other purchases.
3. Bank of America® Customized Cash Rewards Credit Card$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days.Earn 3% cash back in the category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and 1% on all other purchases.

Zero Percent Balance Transfer Credit Cards

Zero percent balance transfer credit cards are an excellent tool for those looking to manage or pay down existing debt. These cards offer a 0% introductory APR on balance transfers for a specified period, allowing you to save on interest charges and pay off your debt faster. Here are a few top picks:

1. Citi® Diamond Preferred® Card0% intro APR on balance transfers for 21 months from the date of first transfer (then a variable APR applies).No annual fee.
2. Discover it® Balance Transfer0% intro APR for 18 months on balance transfers (then a variable APR applies).Earn 5% cash back on rotating categories each quarter (up to $1,500 in purchases) and 1% on all other purchases.
3. U.S. Bank Visa® Platinum Card0% intro APR on balance transfers for 20 billing cycles (then a variable APR applies).No rewards program, focusing on debt repayment.

Benefits of Balance Transfer Credit Cards

Balance transfer credit cards can save you significant amounts in interest payments, making it easier to pay off debt. By transferring high-interest balances to a card with a 0% introductory APR, you can focus on paying down the principal without accruing additional interest.

Bonus Rewards Credit Cards

Bonus rewards credit cards are designed to offer higher rewards for specific types of spending. These cards often provide elevated cashback rates in categories such as dining, travel, and entertainment, allowing you to maximize your rewards based on your lifestyle.

1. Capital One Venture Rewards Credit CardEarn 2x miles on every purchase.Enjoy a one-time bonus of 60,000 miles once you spend $3,000 on purchases within the first three months.
2. Chase Sapphire Preferred® CardEarn 2x points on travel and dining at restaurants & 1 point per dollar spent on all other purchases.Sign-up bonus: 60,000 points after spending $4,000 on purchases in the first three months.
3. American Express® Gold CardEarn 4x Membership Rewards® points at restaurants, including takeout and delivery in the U.S., 4x points at U.S. supermarkets (up to $25,000 per year, then 1x), 3x points on flights booked directly with airlines or on amextravel.com, and 1x points on other purchases.Welcome offer: 60,000 points after spending $4,000 within the first six months.

Best Visa Credit Cards for Cash Back

Visa is a widely accepted credit card network, and many of the best cashback cards are issued on the Visa platform. Here are some of the top Visa cashback credit cards:

1. Chase Freedom Unlimited®Earn 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstore purchases, and 1.5% on all other purchases.Introductory offer: $200 bonus after spending $500 in the first three months.
2. U.S. Bank Cash+® Visa Signature® CardEarn 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories you choose, 2% on one everyday category, like gas stations or grocery stores, and 1% on all other purchases.$150 bonus after spending $500 in the first 90 days.
3. Navy Federal More Rewards American Express® CardAlthough not a Visa card, it deserves mention for its robust rewards: Earn 3x points at supermarkets, restaurants, and on gas and transit, and 1x points on everything else.No annual fee and generous rewards.

Conclusion

Cashback credit cards offer a variety of ways to save on your everyday spending. Whether you prefer flat-rate rewards, tiered categories, or rotating bonuses, there's a card out there that suits your needs. By choosing the right card and leveraging its rewards structure, you can maximize your savings and enjoy significant financial benefits over time.

When selecting a cashback card, consider your spending habits and choose one that aligns with your lifestyle. Look for cards with attractive sign-up bonuses, low or no annual fees, and rewards that match your spending patterns. With the right strategy, cashback credit cards can be a valuable tool in your financial arsenal, providing you with extra cash for your savings, investments, or everyday expenses.