Cash back in Rotating Bonus Categories

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• The Discover it® Cash Back and the Discover it® Student Cash Back offer 5% cash-back bonus categories that change every three months.
• In previous years, Discover would release the entire year of bonus categories in one go, but now they’re taking the Chase Freedom Flex℠ approach and releasing quarterly.   
• Q1 2023 (January through March): The Discover rotating categories include grocery stores, drugstores, and select streaming service providers.
• Read Insider’s guide to the best rewards credit cards.

If you want to get the most out your investment, cash-back credit cardThis year, you should be aware of different earning structures. Some cards offer a flat cash-back rateFor all purchases, some include extra rewards in certain categories and a few (like some). Discover cards) offer increased earnings in quarterly rotating bonus categories. 

The Discover it® Cash Back Discover it® Student Cash BackThese are our top two favorite reward cards students, college graduatesPeople who are new to credit. Cardholders get 5% cash back for purchases up to $1,500 in combined bonus categories (then 1%), which change every three months once activated. All other purchases earn 1% back.

Discover will be announcing quarterly bonus categories instead of one announcement in 2023. Once you activate the 5% Bonus through your Discover online accountThe bonus will be effective from the day you activate it (from Oct 1 to Dec 31, 2022, you can earn 5% Cash Back at Amazon.com, and on digital wallets for purchases up to $1500 after enrollment, then 1%). 

We are focusing on the perks and rewards that each card offers. If you are paying interest or late charges, these cards won’t be worthwhile. It is important to pay your credit card in full each month, make timely payments, and only spend what you are able to afford.

It cash back calendar 2023

Starting January 1, 2023, Discover it® Cash Back, Discover it® Student Cash Back, and Discover More® (no longer available to new applicants) cardholders can earn bonus cash back on purchases made from three popular everyday bonus categories: grocery stores, drug stores, and select streaming services (through March 31, 2023). 

Remember that your 5% reward earnings will be limited after the first $1.500 is spent on combined purchases each quarter. You also have the option to receive a 5% reward for every $1,500 you spend on combined purchases each quarter. mustYou must activate the bonus to your account in order for you to earn the cashback (otherwise 1%). 

Here’s how it works:

Grocery store purchases at Walmart and Target, as well as wholesale clubs, convenience stores, supercenters, and convenience stores, are not eligible for 5% cash back.

Target was one of the quarterly bonus categories last year, so it’s possible that we’ll see a revival of this category later in 2018. Target purchases are currently eligible for 1% cashback. 

This bonus category has no restrictions. If you spend a lot at drugstores, this bonus category is for you. 

The Discover it® Cash Back, Discover it® Student Cash Back, and the Discover More® Card can also earn 5% cash back on purchases from select streaming services, but some restrictions may apply.

Discover offers more redemption options that many people realize. You can use rewards from your cash-back credit card to pay your bill as a statement credit, or request a direct transfer to your bank account. redeem them toward AmazonPayPal and cash them in for gift certificates from selected retailers.

You can also donate your rewards to select charities, including:

• American Cancer Society
• ASPCA
• American Red Cross
• Carbonfund.org
• Children’s Miracle Network
• Junior Achievement
• Juvenile Diabetes Research Foundation
• Make-A-Wish
• Operation Homefront
• World Wildlife Fund

Other cards with rotating categories you might consider

If you like the idea that you could earn a bonus in categories that change each quarter, then you should consider the Chase Freedom Flex℠. Like its predecessor, the Chase Freedom®
The following is no longer available to applicants no-annual-fee Chase Freedom Flex℠ offers 5% cash back in rotating categoriesAfter activation, they are often different than Discover’s in a given quarter. The Chase Freedom bonus categories for Q4 2022 are Walmart and PayPal.

Chase Freedom Flex gives you 5% back (5x) Chase Ultimate Rewards® points) on up to $1,500 spent in combined quarterly bonus categories after activation (then 1%), 5% back on travel purchases made through Chase Ultimate Rewards3% back on dining and drugstore purchases and 1% on all other purchases. Like Discover, Chase Freedom Flex rewards can be used to redeem Chase Freedom Flex points for statement credits and cash back as well as gift cards and merchandise.

If you also have a Chase Sapphire Preferred® Card,  Chase Sapphire Reserve®Or Ink Business Preferred® Credit Card, you can turn your cash back into Chase Ultimate Rewards pointsUnlock more redemption options, such as the possibility of transferring points. Chase’s airline and hotel partnersLike United Airlines Hyatt.