cat108

A smart consumer knows how to use different credit cards strategically across different spending categories to maximize value. Today, let’s look at which cash back cards are best for everyday spending categories. This article lists credit cards with especially strong cash back in twelve categories. Beginners can choose the card that best fits their spending habits, while those with many cards can use this as a guide for deciding which card to use for each purchase category. This article will be updated from time to time.

  • To make comparisons easier, we need to account for the value of points from different banks. Regarding the TPG valuations commonly used online, I personally think they are somewhat inflated, and most people cannot realistically redeem points at such high values (one of the goals of this blog is also to teach readers how to get strong value from their points). So I use my own point valuation estimates:

1 UR (Chase Ultimate Rewards) = 1.8 cent

1 MR (AMEX Membership Rewards) = 1.8 cent

1 TYP (Citi ThankYou Points) = 1.6 cent

I value PenFed points (PFP) at $250/29600 = 0.84 cent

This is only my personal valuation standard. Everyone may value points differently, so please use this article for reference only.

  • This article only includes credit cards that earn more than 3% back in a category. If anything is missing, readers are welcome to add it.
  • The supermarket category on AMEX cards does not include Target or Walmart.
  • The cash back on the Discover it card does not include the Double Cash Promotion. If you enrolled in that promotion, your cash back would be doubled, making the return even better. Existing cardholders can no longer register for it, but newly approved applicants can still enroll. If you do not yet have a Discover it card, you can apply for this great everyday cash back card through this blog’s application link.
  • For hotel cash back, I only use general hotel category standards and do not consider rewards from co-branded cards tied to specific hotel brands.
  • The US Bank Cash+ Visa Signature is a special case. Each quarter, you can choose two 5% categories (up to $2,000) and one 2% category; see here for the specific eligible categories. This card is not included in the comparisons in this article.
  • The tables are sortable, making comparisons easier.

Dining

Credit Card Cash Back Annual Fee Notes Apply
Citi Strata Elite 4.5%/9% (6x TYP) $595 $700 in annual credits; 3x normally, 6x on dining on Friday and Saturday nights Apply
Citi Prestige 6.5% (5x TYP) $495 $250 in annual travel credits No longer available for direct application; only obtainable via product change
AMEX Gold 6.4% (4x MR) $325 $300 in annual credits Apply
Citi Custom Cash 5% $0 $500 monthly cap Apply
AMEX Green 4.8% (3x MR) $250 Clear credit of $189 Apply
Chase Sapphire Preferred 4.8% (3x UR) $95 $50 hotel credit Apply
Chase Sapphire Reserve 4.8% (3x UR) $795 About $2,500 in various annual credits Apply
US Bank Altitude Go 4% $0 Only applies to the first $2,000 in dining purchases per quarter Apply
Citi Strata Premier 3.9% (3x TYP) $95 $100 annual hotel benefit Apply
Capital One Savor 3% $0 No annual fee for the first year Apply
BOA Customized Cash 3% $0 Can be boosted to 5.25% with a premium checking account Apply
Wells Fargo Autograph 3% $0 Apply
Citi Costco 3% $0 Requires at least a $55 Costco membership Apply
Detailed analysis: Best Credit Cards for Dining

Supermarkets

Credit Card Cash Back Annual Fee Notes Apply
AMEX Gold Card 6.4% (4xMR) $325 4x on the first $25,000 in purchases Link
AMEX Blue Cash Preferred 6% $95 On the first $6,000 Link
Citi Custom Cash 5% $0 $500 per month; supermarkets must be your top eligible spending category Link
Citi Premier 4.5% (3x TYP) $95 No limit Link
AMEX Blue Cash EveryDay 3% $0 On the first $6,000 Link
Capital One SavorOne 3% $0 No limit Link
US Bank Shopper 3-6% $95 You must select the category; $1,500 quarterly limit Link
Detailed analysis: Best Credit Cards for Grocery Shopping at U.S. Supermarkets

Gas

Credit Card Cash Back Annual Fee Notes Apply
AMEX Business Gold 6% (4x MR) $375 Only earns 5% if gas purchases are in your Top 2 spending categories, Apply
Citi Custom Cash 5% (excluding EV charging) $0 You only earn 5% on gas if gas is your top spending category, Apply
Synchrony Sam's Club 5% (excluding EV) $0 5% on the first $6000 in purchases per year; requires a Sam's Club membership; you need to be approved for the Mastercard version Apply
AMEX Everyday Preferred 4.5% (3x MR, excluding EV) $95 You only earn 3 MR/$ after making 30 purchases each month Apply
Citi Sears 4% (5x points, excluding EV) $0 You earn Sears points, which have limited redemption options Apply
US Bank Altitude Connect 4% (including EV charging) $95 Will be refreshed to no annual fee in September 2024; quarterly cap of $1000 on bonus gas rewards Apply
Citi Costco 4% (including EV) $0 Requires at least a $55 Costco membership Apply
Citi Premier Strata 3.9% (3x TYP, excluding EV) $95 Apply
BOA Alaska 3.2% (2x miles, including EV) $99 If you have a BOA account, you can get 10% more Apply
BOA Customized Cash Rewards 3% (including EV) $0 With a BOA account, rewards can be boosted by up to 75% Apply
Wells Fargo Autograph 3.6% (3x points; including EV) $0 Apply
AMEX Blue Cash Everyday 3% (excluding EV) $0 Annual cap of $6000 Apply
AMEX Blue Cash Everyday 3% (excluding EV) $95 Apply
Barclays AARP Essential  3% (excluding EV) $0 Apply
Detailed analysis: Best Credit Cards for Gas Stations

Entertainment

Credit Card Cash Back Annual Fee Notes
Discover it 5% $0 Movie theaters only, Q2 in 2015; 1% in other quarters; easy to get approved for
Citi ThankYou Preferred 3.2% (2TYP/$) $0
Citi ThankYou Premier 3.2% (2TYP/$) $95
Citi Prestige 3.2% (2TYP/$) $450 A $350 annual fee version is available when applying at a branch
Citi Forward 8% (5TYP/$) $0 No longer available for application

Bookstores (including Amazon):

Credit Card Cash Back Annual Fee Notes
Salie Mae Mastercard 5% $0 On the first $750 in spending each month
Chase Freedom 9% (5UR/$) $0 Amazon only, Q4 in 2014; 1.8%

(1UR/$) in other quarters

Barnes & Noble Mastercard 5% $0 Only at Barnes & Noble bookstores
Citi Forward 8% (5TYP/$) $0 No longer available to apply for
Amazon.com Store Card 5% $0 Amazon only
All AMEX Small Business Cards 5% NA BN.com only

Drugstores:

Credit Card Cash Back Annual Fee Notes
Old Blue Cash 5% $0 5% only after spending exceeds $6,500 each year; annual spending cap of $50,000
Wells Fargo Visa Signature 5% $0 Only during the first 6 months after account opening; if redeemed for airfare, the return is 7.5%

Airfare

Credit Card Return Annual Fee Notes
AMEX Premier Reward Gold 5.4% (3MR/$) $195 Annual fee waived for the first year; up to $100 in airline incidental fee credits each year
AMEX Business Gold Rewards 5.4% (3MR/$) $175 On the first $100,000 in purchases each year
Citi Thankyou Premier 4.8% (3TYP/$) $95
Citi AT&T Access More 4.8% (3TYP/$) $95 Online only.
Citi Prestige 4.8% (3TYP/$) $450 Up to

$250 in travel credits each year

Citi Dividend 5% $0 Q3 in 2015; no longer open to new applicants, but can be product changed from

other Citi cards

PenFed Travel Rewards Amex 4.2% (5PFP/$) $0
Chase Sapphire Preferred 3.6% (2UR/$) $95 Annual fee waived for the first year.
Upromise World MasterCard 5% $0 Must go through Upromise.com

Hotels

Credit Card Cash Back Annual Fee Notes
Citi ThankYou Premier 4.8% (3TYP/$) $95
Citi AT&T Access More 4.8% (3TYP/$) $95 Online Only
Citi Prestige 4.8% (3TYP/$) $450
Chase Sapphire Preferred 3.6% (2UR/$) $95 Annual fee waived for the first year.
Chase Ink Plus/Bold 3.6% (2UR/$) $95
All AMEX Small Business Cards 5% NA Hyatt hotels only
Upromise World MasterCard 5% $0 Must go through Upromise.com

Other Travel

Credit Card Cash Back Annual Fee Notes
Citi ThankYou Premier 4.8% (3TYP/$) $95
Citi AT&T Access More 4.8% (3TYP/$) $95 Online Only
Chase Sapphire Preferred 3.6% (2UR/$) $95 $0 annual fee for the first year
Upromise World MasterCard 5% $0 Must go through Upromise.com

Department Stores

Credit Card Cash Back Annual Fee Notes
Discover it 5% $0 Only for 7/1-9/30; 1% in other quarters; easy to get approved for
Chase Freedom 9% (5UR/$) $0 Q4 in 2015; 1.8% (1UR/$) in other quarters
Citi Dividend 5% $0 Q4 in 2015; no longer open to new applications, but available via product change from another Citi card

Office Supplies / Cell Phone Bills

Credit Card Cash Back Annual Fee Notes
Chase Ink Plus/Bold 9% (5UR/$) $95 No annual fee for the first year, on up to $50000 in purchases per year.
Chase Ink Cash 9% (5UR/$) $0 On up to $25000 in purchases per year.
AMEX SimplyCash Business 5% $0 On up to $25000 in purchases per year.