How to earn 5% cash back with Discover
To participate in Discover’s rotating 5% cash categories, you need to have an eligible Discover it® or Discover it® more card, such as the Discover it® Cash Back, Discover it® Student Cash Back or NHL® Discover it®.
You then need to log in to your Discover account and activate the 5% bonus cash-back categories each quarter. Once you activate the offer, you can earn 5% cash back on up to $1,500 in spending through 12/31/24 (then 1%).
Discover it® Cash Back
On Discover’s secure site
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Rewards
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.
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Welcome bonus
Discover will match all the cash back earned for all new cardmembers at the end of your first year.
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Annual fee
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Intro APR
0% for 15 months on purchases and balance transfers
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Regular APR
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Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
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Foreign transaction fee
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Credit needed
Pros
- Cash-back program
- Generous welcome bonus
Cons
- Cash-back categories must be activated each quarter
- Cash-back program limits earnings: Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, then 1%
Discover it® Student Cash Back
On Discover’s secure site
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Rewards
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.
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Welcome bonus
Discover will match all the cash back earned for all new cardmembers at the end of your first year
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Annual fee
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Intro APR
0% for 6 months on purchases
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Regular APR
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Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
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Foreign transaction fee
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Credit needed
Pros
- Cash-back program
- Generous welcome bonus
Cons
- Cash-back categories must be activated each quarter
- Cash-back program limits earnings: Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, then 1%
- You must be a U.S. citizen and college student to apply for this card
Discover cash-back calendar for 2024
Discover has revealed its full 5% cash-back calendar for 2024, so you can look at the bonus categories for the whole year.
- January to March (Closed): Restaurants and drug stores
- April to June (Closed): Gas stations and electric vehicle charging stations, home improvement stores and public transit
- July to September (Closed): Walmart (in-store and online) and grocery stores (including grocery delivery services)
- October to December (activate now): Amazon.com and Target
Note that eligible Amazon.com purchases include digital downloads, Amazon Fresh orders, Amazon Prime subscriptions, items sold by third-party merchants through Amazon.com’s marketplace and in-store purchases at Amazon Go and Amazon Fresh. However, purchases made online and in-store with Whole Foods Market are not included in the promotion.
Target purchases include those made in-store at Target, Target.com, or through the Target app. However, purchases made through Target affiliates like Target Optical and Target Photo may not be eligible.
Discover cash-back calendar for 2025
Discover has now also announced its 5% cash-back categories for the first quarter of 2025. The Q2 2025 category will be released in March.
- January to March (activate now): Restaurants, home improvement stores (online and in-store) and select streaming services
- April to June: Announcing on March 1
- July to September: Announcing on June 1
- October to December: Announcing on September 1
How 5% cash-back credit cards work
To earn 5% cash back, you must activate bonus categories each quarter. After you activate bonus categories, you can start earning 5% cash back on eligible spending. Discover lets you set up email alerts and add reminders to your calendar so you don’t forget to activate them.
Earning 5% cash back isn’t unlimited. Each quarter, after you spend a combined $1,500 in the bonus categories, the cash-back rate drops to 1%. This maximum spending requirement resets every quarter.
All other purchases outside the bonus categories earn unlimited 1% cash back. If you want to optimize the amount of cash back you can earn, we recommend using an alternative cash-back or rewards credit card for spending outside the bonus categories, so you earn at least 2% or 2 points per dollar spent.
The Chase Freedom Unlimited® Card ranks as one of our best cash-back cards with no annual fee. It currently earns new cardholders 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). 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.
Chase Freedom Unlimited®
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Rewards
Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 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; and 3% cash back 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.
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Welcome bonus
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!
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Annual fee
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Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
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Regular APR
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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.
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Foreign transaction fee
3% of each transaction in U.S. dollars
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Credit needed
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Member FDIC. Terms apply.
Pros
- No annual fee
- Rewards can be transferred to a Chase Ultimate Rewards card
- Generous welcome bonus
Cons
- 3% fee charged on foreign transactions
The Citi Double Cash® Card is another topic pick, offering an effective 2% cash back: unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
Citi Double Cash® Card
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Rewards
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
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Welcome bonus
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.
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Annual fee
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Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
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Regular APR
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Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
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Foreign transaction fee
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Credit needed
Pros
- 2% cash back on all eligible purchases
- Simple cash-back program that doesn’t require activation or spending caps
- One of the longest intro periods for balance transfers at 18 months
Cons
- 3% fee charged on purchases made outside the U.S.
- Estimated rewards earned after 1 year: $443
- Estimated rewards earned after 5 years: $2,213
Citi also offers its own 5% cash-back card, the Citi Custom Cash® Card, but you don’t need to activate bonuses each quarter. Cardholders automatically earn 5% cash back on purchases in their top eligible spend category each billing cycle, up to the first $500 spent (then 1%).
Citi Custom Cash® Card
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Rewards
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
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Welcome bonus
Earn $200 in cash back after you spend $1500 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.
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Annual fee
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Intro APR
0% APR on balance transfers and purchases for first 15 months
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Regular APR
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Balance transfer fee
5% of each balance transfer ($5 minimum)
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Foreign transaction fee
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Credit needed
Pros
- No annual fee
- 5% cash back in eligible spend categories like restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment
- $200 cash back welcome bonus if meet spending threshold
Cons
- 5% cash back is limited to top spend category, up to the first $500 spent
- 3% foreign transaction fee when traveling outside the U.S.
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Information about the NHL® Discover it® has been collected independently by 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.