Some of the best Discover credit cards are known for their quarterly rotating bonus categories, which allow you to earn 5% (on up to $1,500 in purchases, then 1%) on everyday purchases throughout the year. However, you’ll need to manually activate the bonus categories each quarter to take advantage of this elevated rate — otherwise, you’ll just earn the standard 1% cash back.
For example, if you have the Discover it® Cash Back or Discover it® Student Cash Back, you can earn the elevated rate at Amazon.com and Target from Oct. 1 through Dec. 31 upon activation. If you max out the $1,500 spend cap, you’ll earn $75 back for the quarter.
| Quarter | Discover bonus categories |
|---|---|
| Q1: January through March | Restaurants and drugstores |
| Q2: April through June | Gas stations and EV charging stations, home improvement stores and public transit |
| Q3: July through September | Walmart and grocery stores |
| Q4: October through December | Amazon.com and Target |
Amazon.com purchases include those made through the Amazon.com checkout, like digital downloads, Amazon Fresh orders, Amazon Local Deals, Amazon Prime subscriptions and items sold by third-party merchants through Amazon.com’s marketplace. This also includes purchases in-store at Amazon Go and Amazon Fresh. Purchases made online and in-store with Whole Foods Market are not included in the promotion.
Target purchases include those made in-store at Target, Target.com, or through the Target app. Purchases from individual merchants and stand-alone stores within physical Target locations may not be eligible for this promotion. Purchases made online or through the Target app from Target affiliates, individual merchants or stand-alone stores may not be eligible for this promotion, including, but not limited to, targetoptical.com and targetphoto.com.
Discover announces its new bonus categories on a quarter-to-quarter basis, so it’s impossible to know which other categories will offer bonus cash back for the remainder of 2024. However, looking back at the calendars from the past few years may offer some insight. For example, Discover’s bonus categories included grocery stores, gas stations, restaurants and Amazon.com in 2021, 2022 and 2023.
| Quarter | 2021 categories | 2022 categories | 2023 categories |
|---|---|---|---|
| Q1: January through March | Grocery stores Walgreens CVS | Grocery stores Fitness clubs and gym memberships | Grocery stores Drugstores Select streaming services |
| Q2: April through June | Gas stations Wholesale clubs Select streaming services | Gas stations Target | Restaurants Wholesale clubs |
| Q3: July through September | Restaurants PayPal | Restaurants PayPal | Gas stations Digital wallets |
| Q4: October through December | Amazon.com Target.com Walmart.com | Amazon.com Digital wallets | Amazon.com Target |
Both the Discover it® Cash Back and the Discover it® Student Cash Back offer rotating bonus categories. They also come with Discover’s Unlimited Cashback Match sign-up bonus for new cardholders, which matches all the cash back you’ve earned at the end of your first year.
| Credit Cards | Our Ratings | Rewards Rate | Welcome Offer | Regular APR | |
|---|---|---|---|---|---|
Discover it® Cash Back*
|
5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically | Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. | 18.74% - 27.74% Variable APR | ||
|
Discover it® Student Cash Back*
|
Earn 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically | Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 17.74% - 26.74% Variable APR |
The only catch with Discover’s 5% Cashback Bonus® program is that you’ll need to activate the bonus categories each quarter. However, activation is simple and can be completed via any of the following methods:
Note, you won’t start earning the 5% cash back rate on eligible spending until you activate the bonus categories each quarter.
Here are some tips that will help you maximize your rewards and make the most of Discover’s Cashback Bonus program:
Activate the bonus categories ASAP
Remember, you won’t start earning 5% cash back until you activate the quarterly bonus categories. The best way to keep track of Discover’s activation dates is by setting up reminders on your calendar. You can do this manually or by clicking “Remind me to activate” under each quarter on this page (once logged in to your account). You can also set up email reminders in your Discover account settings.
Try to meet the $1,500 spending cap
To take full advantage of the 5% bonus rate, you should try to meet the $1,500 spending cap each quarter. If you do, you’ll rake in $300 in bonus cash back for the year. However, make sure you’re still paying off your balance each month and not accumulating credit card debt. Ideally, your credit utilization ratio — which compares your current debt to your credit limits — should be at or below 30%.
Pair your Discover card with another cash back card
If you want to earn more than 1% on regular purchases, consider pairing your eligible Discover card with a 2% cash back card. This will double your earnings on non-bonus categories. For example, the Wells Fargo Active Cash® Card lets you earn unlimited 2% cash rewards on purchases. Plus, if you take advantage of the card’s welcome offer, you can earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
One of the best features of Discover cash back cards is their redemption flexibility. You can redeem your rewards for:
In addition, there’s no minimum redemption amount, so you can redeem any amount at any time.
The Chase Freedom Flex℠ is another rewards card that allows you to earn bonus cash back on rotating categories. Like Discover, Chase lets you earn 5% cash back (on up to $1,500 in purchases) on activated bonus categories each quarter. Once you hit the spending cap, you’ll earn the standard 1% on additional purchases.
The Chase cash back calendar for the fourth quarter of 2024 includes McDonald’s, PayPal, pet shops and vet services and select charities. But as you can see in the table below, the categories tend to be similar to the Discover categories:
| Quarter | 2023 Discover categories | 2023 Chase categories |
|---|---|---|
| Q1: January through March | Grocery stores Drugstores Select streaming services | Grocery stores (excluding Walmart) Target Fitness clubs and gym memberships |
| Q2: April through June | Restaurants Wholesale clubs | Lowe’s Amazon.com |
| Q3: July through September | Gas stations Digital wallets | Gas stations EV charging Select live entertainment |
| Q4: October through December | Amazon.com Target | PayPal Wholesale clubs Select charities |
However, there is one big difference between the two programs — unlike Discover, Chase’s activation is retroactive. With Discover, you won’t start earning 5% until after you activate. This means that if you’re late on activating the categories, you’ll only earn the standard 1% rate on previous eligible purchases.
With Chase, though, you can retroactively earn 5% on eligible purchases as long as you activate by that quarter’s deadline. For example, to earn the 5% cash back rate on eligible purchases from Jan. 1 through March 31, you must activate the bonus categories by March 14, 2024. That said — if you activate the first quarter bonus categories after March 14, you’ll only earn 1% cash back on those purchases for the entire quarter.
Like the idea of earning 5% cash back on everyday purchases but don’t want to keep track of rotating categories and activation dates? The Citi Custom Cash® Card is an excellent alternative to Chase and Discover cards. You’ll earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
Eligible 5% categories include:
These are similar to the Chase and Discover categories in recent years, with the addition of travel, transit and home improvement stores.
Citi Custom Cash® Card rewards are paid out as flexible Citi ThankYou® Points, which can be redeemed for cash back, gift cards, Amazon.com purchases or flights through the Citi travel portal. However, you can get even more value if you transfer your points to one of Citi’s 15-plus travel partners.
Yes, Discover offers a solid lineup of cards that are good for many different types of consumers. The best Discover cards come with no annual fees, valuable rewards programs and sign-up bonuses that match all the cash back you’ve earned in your first year. Discover is also known for excellent customer service, ranking third among all issuers in a 2023 credit card satisfaction survey.
No, your Discover cash back rewards will never expire. If you close your account, Discover will mail you a check for your remaining rewards balance.
Choosing the best Discover card depends on where you are in your credit journey, as well as your financial goals and spending habits. Fortunately, Discover’s credit card lineup offers something for everyone.
For example, students looking for their first credit card should check out the Discover it® Student Cash Back. In addition to building your credit, you’ll also earn cash back on every purchase. However, if you already have good / excellent credit and are looking for a solid travel credit card, the Discover it® Miles is ideal. There are no annual or foreign transaction fees, and you’ll earn 1.5 Miles per dollar on all purchases.
The information related to the Discover it® Cash Back, Discover it® Student Cash Back, Wells Fargo Active Cash® Card, Chase Freedom Flex℠ and Discover it® Miles has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
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