In 2018 I began saving and investing the cash back rewards we earned from credit cards. In 2019 alone we earned $4,177.83 in credit card rewards. As of February 2020, our balance has grown to $9,306.53.
Without sacrificing our lifestyle in any way, we’ve been able to save nearly $10,000 by strategically using credit card rewards. To help you maximize your rewards, in this article we’ll look at the best cash back credit cards available today.
As you map out your own cash back strategy, keep in mind that there are three broad types of cash back cards.
- One Reward Rate: The most simple approach is a card that pays the same reward percentage on all purchases. The industry standard is 1%, but for those with good credit, you can nab 1.5% or even 2% on every purchase.
- 5% Rotating Categories: These cards offer 5% cash back on specific categories of purchases that change every three months. There are spending caps eligible for the 5% cash back, typically $1,500 each quarter. All other purchases typically earn 1% cash back.
- Bonus Categories: Finally, some cards offer bonus rewards for certain categories of purchases, such as restaurants, groceries, or gas. The bonus rates can vary based on the categories, with some cards offering multiple bonus categories. Purchases outside of the bonus categories typically pay 1%.
As we look at the top cash back cards, we’ll point out if a card charges an annual fee, offers a signup bonus, or limits its cash back rewards in any way.
Best Cash Back Credit Cards
We start with the Capital One® Quicksilver® Cash Rewards Credit Card. Its 1.5% cash back on all purchases, while not the highest available, is a good rate. It also offers a signup bonus and 0% intro APR on both purchases and balance transfers. For those wanting to avoid an annual fee, this card is a great option.
Capital One® Quicksilver® Cash Rewards Credit Card
- Early Spend Bonus: $150 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase
- Intro APR: 0% intro APR on purchases and balance transfers for 15 months
- No annual fee
- No foreign transaction fees
The Blue Cash Everyday Card from American Express is one of the best cash back cards from American Express that doesn’t charge an annual fee. It pays up to 3% cash back, has a generous welcome offer, and comes with an introductory 0% APR.
Blue Cash Everyday Card from American Express
- Welcome Offer: $150 statement credit after you spend $1,000 in purchases within the first 3 months.
- Cash Back Rewards–
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%);
- 2% cash back at U.S. gas stations and at select U.S. department stores; and
- 1% back on other purchases.
- Note: Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
- Intro APR: 0% for 15 months on purchases and balance transfers.
- No annual fee.
- Terms Apply
The Wells Fargo Cash Wise Visa® Card is one of several 1.5% cash back credit cards, but with a twist. The card pays 1.8% the first year on qualified mobile wallet payments and offers up to $600 protection on your cell phone. It does this without charging an annual fee.
Wells Fargo Cash Wise Visa® Card
- Welcome Offer: Earn $150 after spending $500 within the first 3 months.
- Cash Back: Earn 1.5% cash rewards on every purchase
- Cash Back Bonus: Earn 1.8% cash rewards on qualified mobile wallet purchases during the first 12 months from account opening
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Cash Wise Visa® Card
- Intro APR: 0% Intro APR for 15 months on purchases and balance transfers
- $0 Annual Fee
- Click here to learn more about the product features, terms, and conditions
The Blue Cash Preferred® Card from American Express is one of the best cash back cards for groceries, paying 6% cash back at U.S. supermarkets. There is a spending cap of $6,000 per year, after which grocery purchases earn 1%. It also offers 6% on streaming services and 3% on transit and U.S. gas stations. Finally, the card offers an excellent bonus in the form of a statement credit when spending requirements are met.
Blue Cash Preferred® Card from American Express
- Welcome Offer: Earn $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
- Earn Cash Back: 6% U.S. supermarkets up to $6,000 per year in purchases (then 1%), 3% U.S. gas stations, and 1% other purchases. Terms and limitations apply.
- Earn 6% Cash Back on select U.S. streaming subscriptions including Spotify, Netflix, Hulu, HBO, ShowTime, Pandora, Apple Music, Amazon Music or Video (Does not include Prime membership).
- Earn 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
- With the Blue Cash Preferred® Card, you can start earning cashback. No rotating reward categories. No enrollment required.
- Cashback is received in the form of Reward Dollars that can be redeemed as a statement credit. Cashback is earned only on eligible purchases.
- 0% intro APR on purchases and balance transfers for 12 months, then a variable rate based on your creditworthiness and other factors.
- Annual Fee: $95
- Terms Apply
The Capital One® Savor® Cash Rewards Credit Card stands out as one of the best cash back credit cards for dining out and entertainment. It pays 4% cash back on both, with no spending caps. It offers 2% back on groceries and a $300 bonus when you meet the spending requirements. It’s also ideal for foreign travel as it charges no foreign transaction fees. It does come with a $95 annual fee, which is waived the first year.
Capital One® Savor® Cash Rewards Credit Card
- Early Spend Bonus: Earn $300 cash bonus after you spend $3,000 on purchases within the first 3 months
- 4% Cash Back: Earn 4% cash back on dining and entertainment
- 2% Cash Back: Earn 2% on groceries
- 1% Cash Back: Earn 1% on all other purchases
- Intro APR: 0% intro APR on purchases and balance transfers for 9 months
- $0 intro annual fee for the first year, $95 after that
- No foreign transaction fees
For those with a Fidelity account, the Fidelity Rewards Visa Signature is an ideal card for everyday spending. It pays 2% cash back on eligible purchases, and the rewards go directly into your Fidelity account. It’s ideal if you, like me, save and invest your credit card rewards.
Fidelity Rewards Visa Signature
- Earn unlimited 2% cash back into an eligible
- No Annual Fee
- No Rewards Points limits, expirations or restrictive categories
- A great way to build your investment portfolio at Fidelity
The Chase Freedom Unlimited is a 1.5% cash back card similar to other offers. It has no annual fee. One stand out feature is its introductory 0% APR offer.
Chase Freedom Unlimited
- Welcome Bonus: Earn $150 bonus after spending $500 on purchases in the first 3 months from opening your account.
- Earn unlimited 1.5% cash back on all purchases
- Intro APR: 0% for 15 months from account opening on purchases and balance transfers
- Free credit score, updated weekly with Credit Journey
- No annual fee
Click here to learn more about the Chase Freedom Unlimited and similar credit cards.
The Chase Freedom is a rotating category card. Earn 5% cash back on select purchase categories each quarter up to $1,500 in purchases. What many don’t know is that the rewards from this card can be transferred to other Chase cards in the form of Ultimate Rewards Points.
Chase Freedom
- Signup Bonus: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
- 5% Cash Back: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter
- 1% Cash Back: Earn 1% cash back on all other purchases
- Intro APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers
- Free credit score, updated weekly with Credit Journey
- No annual fee
Click here to learn more about the Chase Freedom and similar credit cards.
The Capital One® SavorOne® Cash Rewards Credit Card is the no annual fee version of the Savor card. You save on the annual fee, but the rewards aren’t as rich. Still, for a no fee card, earning up to 3% cash back is a solid offer.
Capital One® SavorOne® Cash Rewards Credit Card
- Earn $150 cash bonus after you spend $500 on purchases within the first 3 months from account opening
- Earn 3% cash back on dining and entertainment
- Earn 2% at grocery stores
- Earn 1% on all other purchases
- 0% intro APR on purchases for 15 months
- 0% intro APR on balance transfers for 15 months (3% fee on the amounts transferred within the first 15 months)
- No foreign transaction fee
- No annual fee
Compare all of the cards on this page and other cash back cards–and apply online–here.
Frequently Asked Questions
The answer depends on how you use the card. The highest paying cash back card on ALL purchase is the Alliant Credit Union Visa Signature card. It pays 2.5% on all purchases, subject to a spending cap of $10,000 per month. Many cards, however, pay more than 2.5% cash back for specific categories of purchases. Arguably the highest is the Blue Cash Preferred Card by American Express, listed above.
Cash back cards fall into one of three categories. The first type provides a set cash back percentage on all purchases. The second provides increased rewards for certain categories of purchases, such as travel or dining out. And finally, some cards offer an increased rewards level in rotating purchase categories that change every three months.
There are a few credit cards that pay 2% or more on every purchase. These include the Alliant Credit Union Visa Signature card (2.5% cash back) and the Fidelity Visa card (2% paid into your Fidelity account).
With each purchase you make to the card, the issuer pays you a certain percentage of the amount charged. The percentage varies from one credit card to the next, the type of purchase being made, and in some cases how much you’ve already charged to the card. Cash back rewards generally range from 1% to 6%.
