Cash back is the simplest form of credit card rewards: spend money, get a percentage back. No complicated point valuations, no transfer partners—just straightforward value.
Cash Back Card Types
Flat-Rate Cards
Same percentage on every purchase. Simple, no thinking required.
Best for: People who want simplicity, varied spending patterns
Category Bonus Cards
Higher rates in specific categories (groceries, gas, dining), lower elsewhere.
Best for: High spenders in specific categories
Rotating Category Cards
5% in categories that change quarterly, 1% elsewhere. Requires activation.
Best for: Optimizers willing to track and activate categories
Best Flat-Rate Cash Back Cards
Citi Double Cash
- Rewards: 2% on everything (1% when you buy, 1% when you pay)
- Annual fee: $0
- Best for: Simple, high flat-rate rewards
The benchmark for flat-rate cash back. 2% everywhere with no annual fee is hard to beat.
Wells Fargo Active Cash
- Rewards: 2% on everything
- Annual fee: $0
- Welcome bonus: $200 after $500 spend in 3 months
- Best for: Those who want 2% + a welcome bonus
Fidelity Rewards Visa
- Rewards: 2% on everything (deposited to Fidelity account)
- Annual fee: $0
- Best for: Fidelity customers who want automatic investing of rewards
Best Category Bonus Cards
Blue Cash Preferred (Amex)
- Rewards: 6% groceries (up to $6k/year), 6% streaming, 3% transit/gas, 1% else
- Annual fee: $95
- Best for: Families with high grocery spending
Math: If you spend $500/month on groceries, that's $360/year in cash back at 6%. Minus $95 fee = $265 net value. Plus streaming and gas bonuses.
Blue Cash Everyday (Amex)
- Rewards: 3% groceries (up to $6k/year), 3% gas, 3% online retail, 1% else
- Annual fee: $0
- Best for: Moderate grocery spenders who don't want annual fee
Capital One SavorOne
- Rewards: 3% dining, entertainment, groceries, streaming; 1% else
- Annual fee: $0
- Best for: Broad 3% coverage with no annual fee
Chase Freedom Unlimited
- Rewards: 5% travel via Chase, 3% dining/drugstores, 1.5% else
- Annual fee: $0
- Best for: Chase ecosystem users, pairs well with Sapphire cards
Best Rotating Category Cards
Discover it Cash Back
- Rewards: 5% rotating categories (up to $1,500/quarter), 1% else
- Annual fee: $0
- First year bonus: Cashback Match (doubles all rewards year 1)
- Best for: Maximizers willing to track quarterly categories
Categories typically include Amazon, groceries, restaurants, gas, PayPal. Must activate each quarter.
Chase Freedom Flex
- Rewards: 5% rotating categories, 5% travel via Chase, 3% dining/drugstores, 1% else
- Annual fee: $0
- Best for: Chase ecosystem users who want rotating categories
The Optimal Cash Back Setup
For maximum cash back without complexity, consider this two-card combination:
Simple Setup
- Citi Double Cash or Wells Fargo Active Cash: Use for everything (2% flat)
That's it. Simple, effective, no tracking required.
Optimized Setup
- Blue Cash Preferred: Groceries (6%) + streaming (6%)
- Citi Double Cash: Everything else (2%)
- Discover it: Rotating categories when they align with your spending
Cash Back Math
How much can you actually earn? Let's calculate for average spending:
| Category | Monthly | Card | Rate | Yearly Cash Back |
|---|---|---|---|---|
| Groceries | $800 | Blue Cash Preferred | 6% | $576 |
| Dining | $300 | SavorOne | 3% | $108 |
| Gas | $200 | Blue Cash Preferred | 3% | $72 |
| Everything else | $1,000 | Double Cash | 2% | $240 |
| Total (minus $95 BCP fee) | $901 | |||
That's $900+ per year in cash back just from normal spending. Using a single 2% card would yield about $552 by comparison.
Special Considerations for Frum Families
Kosher Grocery Stores
Most kosher grocery stores code as "grocery" and earn grocery bonus rates. Some smaller stores may code differently—test with a small purchase first.
Yom Tov Spending
Holiday periods mean elevated grocery spending. Make sure you're using your best grocery card and haven't hit any caps.
Large Families = More Groceries
Blue Cash Preferred's 6% rate caps at $6,000/year ($500/month). If you spend more, consider a second grocery-bonus card or accept 1% on overflow.
Redemption Strategies
Cash back is simple—a dollar is a dollar. But some tips:
- Statement credit: Reduces your bill. Simple and immediate.
- Direct deposit: Cash to your bank account. Same value.
- Gift cards: Sometimes offered at a bonus (e.g., $25 Amazon for $20 in points). Check periodically.
Avoid: Redeeming for merchandise through card portals—usually poor value.
When to Skip Cash Back
Cash back isn't always the best choice:
- Heavy travelers: Travel rewards cards often provide more value
- Big purchases coming: A welcome bonus card might be better timing
- Beginners: Focus on building credit first, rewards second
Next Steps
- Calculate your spending by category (use our budget tool)
- Determine if category cards or flat-rate cards suit you better
- Apply for one card at a time, 3-6 months apart
- Set up autopay on every card