Which 5% Rotating Bonus Category Card Should I Choose?

Chase, Citi, Discover, U.S. Bank and more offer cards that earn 5% cash back in rotating bonus categories. Here's how they stack up.
Erin Hurd
Robin Saks Frankel
By Robin Saks Frankel and  Erin Hurd 
Updated
Edited by Erica Corbin
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If a credit card offering 5% cash back caught your eye, chances are it's a rotating bonus category card. This means it earns that ultra-high rewards rate in specific spending categories — such as grocery stores or gas stations — and those categories change periodically.

Typically, these cards don't charge annual fees, although maximizing them does require work. For most cards, you'll have to keep track of those categories, and category "activation" may be required each quarter. Plus, you'll face a spending cap on bonus rewards; once you hit that cap, your earnings drop down to 1%. (You could at that point shift your spending to a flat-rate rewards card that does better than 1% back — but, of course, that's more to keep track of.)

If you're up for the challenge — and the high rewards — of a rotating bonus category card, here's a look at how some of the best stack up.

How to choose a 5% rotating bonus category card

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Top credit cards that earn 5% back

Chase Freedom Flex
Chase Freedom Flex℠
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on Chase's website

Discover it® Cash Back
Discover it® Cash Back
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on Discover's website, or call 800-347-0264

Rates & Fees
U.S. Bank Cash+® Visa Signature® Credit Card
U.S. Bank Cash+® Visa Signature® Card
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on US Bank's website

Rates & Fees
Citi Custom Cash® Card
Citi Custom Cash® Card
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on Citibank's application

Rates & Fees
Terms for 5% cash back

5% cash back in quarterly bonus categories on up to $1,500 in combined spending each quarter (activation required). All other non-bonus-category spending earns 1% back. (This card also features fixed bonus rewards in other categories.)

5% cash back on up to $1,500 in combined purchases in bonus categories up to the quarterly maximum each time you activate. After that, 1% back.

5% cash back on the first $2,000 in combined eligible net purchases each quarter in two categories you choose; 2% cash back in one everyday category; and 1% back on all other spending.

5% cash back on purchases in your top eligible spend category each billing cycle, up to $500 spent, and 1% thereafter. Earn unlimited 1% cash back on all other purchases.

Sign-up bonus

Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.

INTRO OFFER: 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.

$200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Intro APR offer

0% intro APR on purchases and Balance Transfers for 15 months, and then the ongoing APR of 20.49%-29.24%, Variable APR.

0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 17.24%-28.24% Variable APR.

0% intro APR for 15 billing cycles on purchases and balance transfers, and then the ongoing APR of 19.49%-29.74% Variable APR.

0% intro APR on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 19.24%-29.24% Variable APR.

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The Citi Dividend Card also features 5% rotating cash-back categories that you activate, as does the original Chase Freedom®. But neither card is accepting new applications. And while the U.S. Bank Shopper Cash Rewards™ Visa Signature® Card also offers changeable categories, its top rate is 6% back, instead of 5%.

Chase Freedom Flex
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Chase Freedom Flex℠

The Chase Freedom Flex℠ is a valuable and potentially lucrative card that you can maximize for everyday spending. It earns 5% cash back in quarterly bonus categories on up to $1,500 in combined spending each quarter. Activation of bonus categories is required. (See the quarterly 5% bonus calendar below.) In addition, it offers:

  • 5% back on travel booked through Chase.

  • 3% back on dining, including takeout and delivery services.

  • 3% back on drugstore purchases.

  • 1% on all other purchases.

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Through March 31, 2025, cardholders also earn 5% back on qualifying Lyft services purchased through the Lyft app.

Rewards come in the form of Chase Ultimate Rewards® points, which are worth a penny each when redeemed for cash back.

Pros

Cons:

  • Each quarter's bonus categories are announced only a few weeks prior to the activation date and may not align with your spending habits.

  • Additional bonus tiers make the card more complicated to manage than others.

  • There's a foreign transaction fee of 3%.

Chase Freedom® and Chase Freedom Flex℠ bonus rewards categories for 2024

Q1 (Jan. 1-March 31)

  • Grocery stores.

  • Fitness clubs and gym memberships.

  • Self-care and spa services.

Q2 (April 1-June 30)

  • Select hotel bookings.

  • Restaurants.

  • Amazon.com.

Q3 (July 1-Sept. 30)

  • TBD (In 2023: Gas stations and electric vehicle charging; select live entertainment).

Q4 (Oct. 1-Dec. 31)

  • TBD (In 2023: PayPal; wholesale clubs; select charities).

Discover it® Cash Back

Discover it® Cash Back
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The Discover it® Cash Back also earns 5% back on up to $1,500 in spending on rotating quarterly categories (activation required; 1% back on all other purchases). Bonus categories historically have included things like restaurants, grocery stores, and home improvement stores. But this card has a distinctive sign-up offer not found on similar products. The issuer describes it this way: "INTRO OFFER: 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."

Pros

  • Unique and potentially lucrative sign-up bonus.

  • Bonus categories for each quarter are announced at the beginning of the year, so planning is easier.

  • No foreign transaction fees.

Cons

  • You won't get the sign-up bonus until the end of your first year.

  • Discover cards are not as widely accepted outside of the U.S. as are Visa and Mastercard.

  • Bonus rewards are not retroactive upon activation.

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The Discover it® Cash Back isn't the only Discover card with this rewards structure. Other 5% rotating bonus category cards from the issuer include the Discover it® Student Cash Back and the NHL® Discover it®.

Discover bonus rewards categories for 2024

Q1 (Jan. 1–March 31)

  • Restaurants.

  • Drugstores.

Q2 (April 1–June 30)

  • Gas stations/EV charging stations.

  • Home improvement stores.

  • Public transit.

Q3 (July 1–Sept. 30)

  • TBD (In 2023: Gas stations; digital wallets).

Q4 (Oct. 1–Dec. 31)

  • TBD (In 2023: Amazon, Target).

U.S. Bank Cash+® Visa Signature® Card

U.S. Bank Cash+® Visa Signature® Credit Card
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The U.S. Bank Cash+® Visa Signature® Card is the most flexible rotating bonus category card of them all — but it's also perhaps the most complicated. You can choose two 5% categories per quarter from a list of 12 (see the list below), with a combined quarterly spending cap of $2,000. Plus, you get to pick one 2% cash-back category from a list of three "everyday" choices (like gas stations or grocery stores) without a spending cap. All other spending earns an unlimited 1% cash back. That's impressive, if also work-intensive.

Pros

  • 5%-back categories are customizable, and you get two of them each quarter up to the combined $2,000 cap.

  • That quarterly spending cap is higher than those on similar rotating category cards.

  • Unlike other similar cards, you also get an unlimited 2% back in one everyday category.

  • Fast food.

  • Home utilities.

  • TV, internet and streaming.

  • Department stores.

  • Cell phone providers.

  • Electronics stores.

  • Sporting goods stores.

  • Movie theaters.

  • Gyms/fitness centers.

  • Furniture stores.

  • Ground transportation.

  • Select clothing stores.

Cons

  • The rewards structure is complex and requires careful review each quarter. (For example, "fast food" is a 5% category, while "restaurants" is a 2% category.)

  • You won't start earning bonus rewards until three business days after you activate them, and they're not retroactive.

  • It's got a foreign transaction fee of 3%.

  • You can redeem for literal cash only if you bank with U.S. Bank. Otherwise, you'll have to take your earnings as a statement credit or reward card.

Citi Custom Cash® Card

Citi Custom Cash® Card
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The Citi Custom Cash® Card works differently than many in its category. It earns 5% back in one eligible spend category, on up to $500 each billing cycle, and an unlimited 1% back on all other purchases. Unlike other cards that feature set rotating categories each quarter and require activation, rewards from the Citi Custom Cash® Card are automated and adjusted based on your spending habits each billing cycle. Plus, the list of categories is robust, and features popular line items like grocery stores, restaurants, select travel and home improvement stores, among others.

The ability to earn lucrative ongoing rewards in broad and useful everyday spending categories makes the Citi Custom Cash® Card especially valuable, especially considering its $0 annual fee.

Rewards are earned in the form of Citi ThankYou® Points, which can be redeemed for cash back as a direct deposit, check or statement credit at a value of 1 cent per point.

Pros

  • Earn 5% rewards in categories that automatically adjust each billing cycle based on your spending habits.

  • There's no need to remember to activate current bonus categories.

Cons

  • Low spending cap: you'll earn 5% on one bonus category each billing cycle, up to $500, but anything else you spend on the card will earn just 1%.

  • While the card offers 10 bonus categories, you're limited to earning 5% in just one bonus category each billing cycle.

  • Rewards structure could be pleasantly low-maintenance for some, but high-maintenance for others who want to maximize every purchase.

  • There's a foreign transaction fee of 3%.

Alternatives to rotating bonus category cards

Blue Cash Preferred® Card from American Express
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Tracking categories? Activating them each quarter? Minding your spending caps? Does all of this sound like too much work for 5% back? If so, you have other options for earning high rewards rates, depending on how much maintenance you're willing to do.

PayPal Cashback Mastercard
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If you want bonus categories that don't move around on you, consider a card with a tiered (but consistent) rewards system that earns its highest rates in areas where you spend the most, all year round. If, for example, groceries are your biggest household expense, you might benefit from the Blue Cash Preferred® Card from American Express. Unlike these other cards it does charge a fee, currently: a $0 intro annual fee for the first year, then $95. But in exchange, you'll rack up rich rewards across a wide range of bonus categories: 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%); 6% back on select U.S. streaming services; 3% back at U.S. gas stations and on eligible transit; and 1% back on other purchases. Terms apply (see rates and fees).

And if even that sounds like too much category tracking? You can opt for a rewards card that earns one high flat rate back on everything you buy — no need to remember any bonus categories. The PayPal Cashback Mastercard® fits that bill, offering 2% cash back on purchases (and 3% back on purchases through PayPal) for an annual fee of $0.


To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.

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