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The best 5 percent bonus category cards offer exceptional, customizable earning rates in eligible categories, plus some other major perks you can enjoy. You’ll still earn a base rate (usually 1 percent back) for non-eligible purchases, but a few rotating category cards have additional bonus categories.
Some cards even let you earn a generous sign-up bonus when you meet a minimum spending requirement in the first few months. Although rewards and perks are a nice bonus, compare 5 percent cards based on fees, intro APR offers and bonus rewards caps. These features (or lack thereof) as well as your financial goals will determine the best card for you.
Comparing the best 5 percent rewards credit cards
| Card | Bonus offer | Rewards rate | Annual fee | Bankrate score |
|---|---|---|---|---|
| Discover it® Cash Back | Discover will automatically match all the cash back you’ve earned at the end of your first year |
|
$0 | 4.4 |
| Chase Freedom Flex® | $200 cash bonus after spending $500 within your first three months |
|
$0 | 4.8 |
| Citi Custom Cash® Card | 20,000 ThankYou points after spending $1,500 on purchases in the first six months |
|
$0 | 4.4 |
| U.S. Bank Cash+® Visa Signature® Card | $200 rewards bonus after you spend $1,000 in eligible purchases within the first 120 days |
|
$0 | 3.2 |
The best 5 percent cash back credit cards
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The Discover it® Cash Back lets you earn a high cash back rate in rotating quarterly bonus categories. There’s no annual fee, and Discover will match all the rewards you earn after the first year with its unique Cashback Match program.
Additionally, the Discover it® Cash Back offers an intro APR on purchases and balance transfers. The Discover cash back calendar also shares some promising rewards categories annually, but no one knows the exact categories until about a month before they start.
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Pros
- The intro APR offer can help you save money when you carry a balance or transfer high-interest debt.
- Earn a large sum of cash back with Discover’s unique welcome offer, raising the bar for first-year value.
Cons
- Discover doesn’t announce bonus categories until the month before they start, so it can be hard to plan purchases ahead of time.
- Cash back earnings are capped at $1,500 in quarterly bonus category spending, restricting rewards potential for big spenders.
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The Chase Freedom Flex is unique because it offers several bonus categories along with its quarterly rotating bonus categories. There’s no annual fee, and Chase sweetens the pot with a decent welcome offer.
Like Discover’s categories, the Chase Freedom Flex bonus categories are announced on a quarterly basis. While it’s not known exactly what the bonus categories will be for any given quarter until a month or so in advance, they can be somewhat similar from one year to the next.
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Pros
- Its exceptional earning rates in everyday categories and rotating categories make it a good stand-alone card.
- You can take advantage of extra travel benefits like trip cancellation/interruption insurance, auto rental collision coverage and travel assistance services — rare for a no-annual-fee card.
Cons
- Chase only reveals its 5 percent bonus categories one quarter at a time, so it’s difficult to plan ahead.
- While the card offers an intro balance fee of 3 percent (minimum $5), its balance transfer fee jumps to 5 percent after the first 60 days, so it won’t be too beneficial for long-term debt management.
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The Citi Custom Cash automatically rewards your top eligible spending category each billing cycle with 5 percent cash back on up to $500 each billing cycle (then 1 percent). This makes the Citi Custom Cash one of the easiest 5 percent cards to use since you don’t have to remember to activate your bonus category each cycle and you can earn 5 percent back in any eligible category on your terms throughout the year. This flexibility makes it one of the best cards for pairing because it can easily fill gaps in any multi-card rewards strategy.
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Pros
- This rewards card is low maintenance as your top eligible category is automatically rewarded with 5 percent back each billing cycle with no need to activate it.
- It carries an intro APR offer for purchases and balance transfers, making it a valuable and flexible addition to your wallet.
Cons
- Your 5 percent category is capped at $500 in spending each billing cycle, which limits your earning potential in categories where heavy spending might be most rewarding.
- You’ll pay a balance transfer fee that is on the higher end, 5 percent (or $5, whichever is greater), so it might impact how much you save if you take advantage of the intro APR offer on balance transfers.
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The U.S. Bank Cash+ Visa Signature works a little differently compared to other 5 percent back cards on this list. The U.S. Bank Cash+ Visa Signature lets you select two 5 percent bonus categories each quarter, as well as a 2 percent category focused on everyday purchases.
You’ll earn this card’s highest rewards rate in two customizable categories to a limit of up to $2,000 in combined spending, but this card’s valuable flexibility will make it an ideal pick for maximizing your rewards in some spending categories seldom found on rewards cards.
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Pros
- You get to pick your 5 percent categories each quarter, as well as 2 percent back on one everyday spending category.
- It carries an intro APR offer on purchases and balance transfers, making it an ideal card for debt management.
Cons
- You’ll have to make sure to transfer any qualifying balances in the first 60 days to qualify for the introductory offer.
- It’s not the best card for international purchases since it has a foreign transaction fee, which can cut into your rewards earnings.
How to choose a 5 percent rotating bonus category card
You may already have a favorite 5 percent cash back card in mind based on what you know about your spending habits and how they’ll align with the bonus categories of these cards. But there are a few other factors you may want to keep in mind.
For example, it helps to look at a card’s 5 percent rewards calendar (for the issuers that make them available), since doing so gives you the chance to see which categories you can use for bonus rewards in the future. If a specific rewards credit card offers several quarterly categories you frequently spend in, there’s a chance that card could be a good fit.
You should also look at these features:
- Credit card sign-up bonuses that can help you earn $200 or more within a few months of account opening with a minimal spend
- Bonus rewards caps that can limit the amount of cash back you earn
- Rewards redemption options that include cash back, statement credits, gift cards, merchandise and more
- Introductory APR offers that can help you save money on interest when it comes to purchases, balance transfers or both
- Credit card fees that can eat away at your rewards
Tips for maximizing your rewards earnings with a rotating bonus category card
No matter which 5 percent cash back credit card you choose, you can boost your rewards haul with the right moves. Here are some strategies to consider if you want to maximize your efforts:
- Make sure to activate your 5 percent cash back bonus rewards every quarter. Cash back credit cards with rotating categories typically require you to “opt in” to bonus rewards each quarter. If you forget, you’ll miss out on elevated rewards.
- Pair multiple cards with different bonus categories. Consider using more than one card to cover as many bonus categories as possible. You can use a different card to maximize rewards in its respective 5 percent categories throughout the year, and most cards in this niche do not charge annual fees.
- Pair a 5 percent cash back card with a flat-rate cash back card. Most 5 percent back credit cards only give you 1 percent back on regular purchases, so consider pairing it with a flat-rate rewards credit card that rewards you with 1.5 or 2 percent back on regular spending.
- Pay your credit card bill in full each month. Remember to pay your credit card bill in full each month for the best results. If you carry a balance for a long time, the credit card interest you pay will quickly wipe out your rewards.
Frequently asked questions
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Several credit cards offer 5 percent in specific categories. However, that cash back rate may have spending caps and varies by spending category.
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It’ll be hard to earn 5 percent cash back on all purchases, but if you pair multiple credit cards that offer 5 percent back in different categories you can cover a lot of ground. Key cards include the Citi Custom Cash Card, the Chase Freedom Flex and Discover it Cash Back for their quarterly categories, and even the Amazon Prime Visa for Amazon and Whole Foods purchases. You’ll have to remember to activate offers each quarter for the rotating cards and track your category spending, but a multi-card rewards strategy is a great way to earn 5 percent cash back on most purchases you make.
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Choosing between points and cash back hinges on personal preference and habits. Frequent travelers may favor points for potentially higher travel redemption values, while those valuing simplicity and certainty may prefer 5 percent cash back. Consider your spending and redemption habits to decide which is more beneficial for you.
What’s next?
Discover the best card for your wallet with these Bankrate tools.
The bottom line
Rewards credit cards that give 5 percent back in rotating bonus categories can be a useful tool for maximizing your cash back earnings, especially if you pick up a card with categories that match your spending or if you can pair it with another card that offers a 1.5 percent or 2 percent flat rewards rate. If you’re able to earn a sign-up bonus and get a few credit card perks along the way, even better.
Even if you are fixated on one card, you should take the time to compare other credit cards, including ones that dole out rewards differently. The best cash back credit card for you is the one that aligns with your spending style and has perks you’ll use, not necessarily the one with the highest rewards rate.
*The information about these cards has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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