Discover It Announces 5% Bonus Cashback Category for Q3 - NerdWallet
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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.

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