Redeeming Discover credit card cash back for gift cards can be a solid option, since the discounts are pretty good—typically 5%-30% off—and the gift cards are generally first-party. Discover recently increased the redemption rates on some cards, as listed below.
- Athleta – 25%
- Banana Republic – 25%
- Bed Bath & Beyond – 20%
- Buy Buy Baby – 20%
- Chipotle – 20%
- Foot Locker – 20%
- Gap – 25%
- Happy Dining – 20%
- Happy Moments – 20%
- Happy Rewards – 20%
- Macy's – 15%
- Old Navy – 25%
- Under Armour – 20%
I’m sure many of you have built up quite a bit of quarterly 5% cash back, so this could be worth a look if you have a use for it. But remember to save a few cents of cash back for Amazon deal hunting.
If you often buy kids’ clothes, Gap is actually a pretty good option.
About Discover credit cards
5% rotating categories each quarter; no annual fee! Great as a first student card
- Welcome bonus: $100 cash back (one purchase within three months)
- Rewards: Earn 5% cash back in different categories each quarter, doubled to 10% in the first year
- Redemption: Redeem directly; gift cards may be available at a discount, up to 5% off
- Annual fee: $0
- Apply now>>