Discover APRs are accurate as of December 12, 2024.
If you want to maximize your rewards, a 5% cash-back card can be a smart addition to your wallet as they often have standard interest rates and no annual fee.
The Discover it® Cash Back is one of three Discover cards that can be activated to earn 5% cash back on the first $1,500 in purchases in rotating categories each quarter, then 1%. Discover’s 5% cash-back calendar has previously included everything from grocery stores and drug stores to select streaming services (excludes Walmart and Target purchases). The eligible merchants rotate quarterly, and cardholders must enroll each quarter to receive the benefit at select merchants.
Below, CNBC Select breaks down Discover it Cash Back’s rewards and benefits to help you decide if it’s right for you.
The Discover it® Cash Back offers an excellent return in a wide range of useful rotating quarterly bonus categories.
- Unique welcome bonus matches the cash back new cardholders earn for the first year
- Generous intro-APR offer applies to purchases and balance transfers
- No annual fee
- Cash-back categories must be activated each quarter
- Bonus cash back is capped, then you’ll earn 1% back
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
Highlights
- 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.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get a 0% intro APR for 15 months on purchases. Then 18.49% to 27.49% Standard Variable Purchase APR applies, based on credit worthiness. Rates as of December 12, 2024.
- Terms and conditions apply.
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Discover it Cash Back review
Welcome bonus
Benefits and perks
- Free access to your FICO score: You can view a credit scorecard with your FICO credit score and what’s impacting it.
- $0 Fraud Liability Guarantee: You’re not responsible for unauthorized purchases on your card.
- Online Privacy Protection: Every 90 days, Discover will scan at least 10 people-search sites for your personal information and help you submit opt-out requests.
- Discover® Identity Alerts: Discover will notify you if your social security number is found on the dark web or if there are new inquiries or accounts on your Experian credit report.
Consider pairing your card with a Discover bank account
If you want to do all your banking in one place, the Discover® Cashback Debit Checking account offers a debit card that earns 1.00% cash back on up to $3,000 in debit card purchases each month. You can also earn a generous return on your cash with a Discover® Online Savings Account.
Discover® Cashback Debit Checking
Discover® Bank is a Member FDIC.
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Monthly maintenance fee
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Minimum deposit to open
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Minimum balance
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Rewards
1% cash back on up to $3,000 in debit card purchases each month. See website for details by clicking “Learn More”.
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Free ATM network
60,000+ Allpoint® and MoneyPass® ATMs
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ATM fee reimbursement
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Overdraft fee
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Mobile check deposit
Discover® Online Savings Account
Discover® Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
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Excessive transactions fee
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Yes, if have a Discover® checking account
How to earn and redeem Discover it Cash Back rewards
Discover releases its 5% cash-back categories at the start of each quarter. Previous categories have included restaurants, drug stores, gas stations, grocery stores, Amazon and more.
The cashback doesn’t expire and you can redeem your rewards at any time for statement credits, gift cards, merchandise and more. If there has been no account activity for 18 months, or it is closed, Discover will credit your account or send you a check for the balance.
Rates and fees
If you plan on carrying a balance, the Discover it® Cash Back offers a 0% intro APR for 15 months from the date of account opening for purchases and balance transfers, then the standard variable purchase APR of 18.49% to 27.49% applies.
Card comparison
Discover it Cash Back Card vs. Wells Fargo Active Cash® Card
Wells Fargo Active Cash® Card
On Wells Fargo’s secure site
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Rewards
Unlimited 2% cash rewards on purchases
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Welcome bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
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Annual fee
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Intro APR
0% intro APR for 12 months from account opening on purchases and qualifying balance transfers.
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Regular APR
19.24%, 24.24%, or 29.24% Variable APR
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Balance transfer fee
Intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
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Foreign transaction fee
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Credit needed
Pros
- High flat-rate return on all purchases
- Intro-APR for purchases and qualifying balance transfers for a year
- No annual fee
- Cell phone insurance
Cons
- Has a foreign transaction fee
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on all purchases and $0 annual fee.
The Wells Fargo Active Cash® Card also has no annual fee, but a very different rewards structure from the Discover it Cash Back.
It offers a flat 2% cash back on all your purchases. While that’s lower than the up to 5% the Discover it Cash Back can earn, the 2% cash back from the Active Cash card applies to all purchases and is uncapped. It has a welcome bonus of $200 cash rewards bonus after spending $500 in purchases in the first 3 months of account opening, which is a shorter timeframe than the Discover it’s bonus, but can potentially be more valuable.
The Wells Fargo Active Cash also comes with some extra protection like up to $600 of cell phone protection and 24/7 roadside dispatch.
Learn more: Wells Fargo Active Cash® Card
Discover it Cash Back Card vs. Chase Freedom Unlimited®
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Valuable welcome bonus and high rewards rates
- Long intro APR for purchases and balance transfers
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.74% – 28.49%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
This card has no annual fee and offers exceptional returns on everyday spending. Normally, it earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases. However, as a welcome bonus, you can earn an additional 1.5% cash back on up to $20,000 spent in the first year. So, you will earn 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year).
If you pair this card with a Chase credit card that offers transfers (such as the Chase Sapphire Preferred® Card), you can combine your points and convert the points you earn with the Freedom Unlimited into airline miles and hotel points. This allows you to drastically increase the value of your rewards.
Learn more: Chase Freedom Unlimited®
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Is the Discover it Cash Back card right for you?
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Information about the NHL® Discover it® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the cards prior to publication.
For rates and fees of the Discover it® Cash Back, click here.
For rates and fees of the Discover it® Student Cash Back, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
