Discover It Announces 5% Bonus Cashback Category for Q3
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The Discover it®- Double Cash Back your first year announced that from July through September, it would offer 5% cashback on gas, up to $1,500 in purchases. That sounds like a decent value – but only if you spend a lot of money on gas. The Discover it®- Double Cash Back your first year has exactly one bonus category, while the Chase Freedom® offers 5% back, also up to $1,500 spent, on gas, theme parks and Kohl’s during the same time period. If you spend $500 a month on gas, or you spend absolutely nothing on Kohl’s and theme parks, the Chase Freedom® and Discover it®- Double Cash Back your first year are equally compelling. But if those two statements don’t apply to you, you’re better off with the Chase Freedom®’s flexibility.
5% cashback categories: How the cards stack up
Here are the 5% cards’ bonus categories for 2013, as we know them now:
|Card||Chase Freedom®||Discover it®- Double Cash Back your first year|
|Q1||Gas, drugstores, Starbucks||Restaurants, movie theaters|
|Q2||Restaurants, movie theaters||Home improvement|
|Q3||Gas, theme parks, Kohl’s||Gas|
|Q4||Select department stores, Amazon||“Holiday shopping”|
Which is the best 5% cashback card?
In the end, while you can try to optimize for the best 5% categories in the short term, you’re best off considering a card’s perennial features if you plan to keep it for a few years. It comes down to what you value: a higher rewards cap and a signup bonus with the Chase Freedom®, or the Chase Freedom®’s balance transfer potential.