While I personally like to earn travel rewards for my credit card spending, I recognize that a lot of people prefer to earn cash back, and that is totally fair. Cash back gives you lots more flexibility, and unlike with travel rewards, there is not really a learning curve to redeeming it. Just as with travel rewards cards, though, it is important to make sure you are getting as much value as possible.
In this post I want to take a look at what I consider to be the most lucrative cash back personal credit cards, covering a range of annual fees and spending profiles.
Compare cash back credit cards
Chase Freedom Unlimited®
Earn a $200 Bonus
- Earn 3% Cash Back on Dining
- Earn 3% Cash Back at Drugstores
- Earn 1.5% Cash Back On All Other Purchases
Enjoy 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; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Learn more from these OMAAT posts:
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 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; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
Citi Double Cash® Card
Earn $200 after qualifying purchases
- Earn 1% cash back when you make a purchase, earn 1% cash back when you pay for that purchase
1% cash back when you make a purchase
1% cash back when you pay for that purchase
Learn more from these OMAAT posts:
- 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.
- 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, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
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.
Bank of America® Premium Rewards® credit card
60,000 ONLINE BONUS POINTS OFFER
- Unlimited 2 points per $1 spent on travel and dining purchases
- Unlimited 1.5 points per $1 spent on purchases made everywhere else
- Up to $100 in Airline incidental and up to $100 in Airport Security Statement credits
Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don’t expire as long as your account remains open.
- Low $95 annual fee.
- Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.
- Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don't expire as long as your account remains open.
- Turn daily purchases into everyday wins. Simply use your Premium Rewards credit card for the things you already buy - from gifts to getaways - BofA Rewards™ members earn more points.
- Redeem for cash back as a statement credit, deposit into eligible Bank of America® accounts, credit to eligible Merrill® accounts, or gift cards or purchases at BofA Travel.
- Get up to $100 in Airline Incidental Statement Credits annually and TSA PreCheck®/Global Entry Statement Credits of up to $100, every four years.
- Travel Insurance protections to assist with trip delays, cancellations and interruptions, baggage delays and lost luggage.
- No foreign transaction fees.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Receive 60,000 online bonus points – a $600 value – after you make at least $4,000 in purchases in the first 90 days of account opening.
Capital One Savor Cash Rewards Credit Card
$200 cash bonus
- Earn 3% cash back on dining
- Earn 3% cash back on groceries
- No Foreign Transaction Fee
Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
Earn 8% cash back on Capital One Entertainment purchases
Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- $0 annual fee and no foreign transaction fees
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 12 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening
5 best cash back credit cards
There are several excellent cash back personal credit cards, whether you are looking to maximize your return on everyday spending, dining, groceries, or a variety of other categories. Below are the cards I find most compelling, with my favorite ways to optimize each.
1. Citi Double Cash® Card
The Citi Double Cash Card is probably my favorite no annual fee cash back card. I have had it for several years now, and it is one of the cards I spend the most on, especially for everyday purchases that do not fall into a bonus category. If you are not earning at least two cents back on every dollar spent after paying your bill, you are not doing it right, and this card is the gold standard for that.
Welcome bonus
The card currently offers a welcome bonus of 20,000 ThankYou points after spending $1,500 within the first six months. Those points can be redeemed for $200 cash back, or transferred to airline and hotel partners if you also have a premium Citi card. I value ThankYou points at 1.7 cents each, which puts the bonus closer to $340 in value with the right card combo.
Rewards structure
- 1% cash back when you make a purchase, plus 1% cash back when you pay for that purchase, giving you an effective 2% back on everything after paying your bill
- No caps or categories to track
- Points can be redeemed as a statement credit or direct deposit; no minimum redemption amount
- 3% foreign transaction fee, so best used for domestic purchases
One interesting nuance: the Double Cash lets you redeem points for cash at one cent per point, which is actually a better rate than some of Citi’s premium cards offer. Since you can pool points across Citi cards, you could redeem all your ThankYou points through the Double Cash at that higher rate.
Link: Learn more about the Citi Double Cash® Card
2. Bank of America® Premium Rewards® credit card
The Bank of America Premium Rewards Card has the potential to be the single most lucrative cash back card out there for everyday spending. On the surface it looks like a pretty average card, but combined with the Bank of America BofA Rewards™ program, it can earn up to 2.625% cash back on all purchases, which is virtually unheard of. There are some hoops to jump through, but for the right person, this card is incredible.
Welcome bonus
The card is offering a best-ever welcome bonus of 60,000 points after spending $4,000 within the first 90 days. Points can be redeemed for one cent each, making the bonus worth $600 cash back. Note that this card had the same bonus of 50,000 points for years, so this offer is meaningfully better than before.
Rewards structure
- 2x points (2% cash back) on travel and dining
- 1.5x points (1.5% cash back) on all other purchases
- No foreign transaction fees
- $95 annual fee
The BofA Rewards™ program: Where the magic happens
The Bank of America BofA Rewards™ program is what transforms this card from ordinary to extraordinary. Based on your combined three-month average balance with Bank of America and Merrill, you earn a bonus on all credit card rewards:
Tier | Combined balance required | Credit card rewards bonus |
|---|---|---|
Member | No minimum | 10% |
Preferred Plus | $30,000+ | 25% |
Preferred Honors | $100,000+ | 50% |
Premier | $1,000,000+ | 75% |
At the Premier tier, earning 2.625% cash back on all non-bonused spending is something no other card offers. To put it in perspective, you could pay your taxes by credit card for a fee of 1.85% and still come out ahead by 0.775%. Bank of America is presumably losing money on most transactions at this level, and using the program to deepen their banking relationship with customers.
The balance requirement has some flexibility worth noting. Eligible balances include Bank of America deposit accounts and Merrill investment accounts, including IRAs. Rolling over an old 401(k) to Merrill could be a way to meet a higher threshold for some people, though you should always consult your own financial advisor before making that kind of decision.
This card most definitely will not be for everyone, but for those who either have assets with Bank of America or Merrill, or have the option of moving assets there without much opportunity cost, this card is incredible. Even for others, the welcome bonus and $100 airline credit make it worth considering.
Link: Learn more about the Bank of America® Premium Rewards® credit card with 60K bonus points
3. Capital One Savor Cash Rewards Credit Card
The Capital One Savor Cash Rewards Credit Card is my favorite no annual fee Capital One card, and one I personally have. Despite the lack of an annual fee, the card has a great rewards structure and no foreign transaction fees, which is a rare combination. I consider this to be the best no annual fee cash back card for dining, especially when you factor in the ability to use the card abroad without paying fees.
Welcome bonus
The card offers a welcome bonus of $200 cash back after spending $500 within the first three months. That is a solid bonus with a very reasonable spending requirement. Eligibility for the bonus is independent of whether you have other Capital One cards.
Rewards structure
- 3% cash back on dining, including restaurants, cafes, bars, lounges, fast food chains, and bakeries
- 3% cash back at grocery stores, including supermarkets, meat lockers, freezers, dairy product stores, and specialty markets (superstores like Walmart and Target excluded)
- 3% cash back on entertainment, including movie theaters, sports promoters, amusement parks, tourist attractions, aquariums, zoos, dance halls, record stores, pool halls, and bowling alleys
- 3% cash back on popular streaming services, including Netflix, Hulu, Disney+, ESPN+, and more
- 1% cash back on all other purchases
- No foreign transaction fees
- No annual fee
The 1% rate on non-bonused spending is the weak spot of this card. I would not recommend using it for everyday purchases that do not fall into one of the bonus categories. There are better options for that.
Link: Learn more about the Capital One Savor Cash Rewards Credit Card
4. Blue Cash Preferred® Card from American Express
If you spend a lot at U.S. supermarkets and want to earn cash back, the Blue Cash Preferred Card from American Express is hard to beat. I tend to lean toward points-earning cards for my own spending, but for people who prefer cash back, the Blue Cash Preferred is one of the best options out there.
Welcome bonus
The card is offering a welcome bonus of up to $300 cash back after spending $3,000 within the first six months. That is a solid bonus for a card at this price point, and the six-month window gives you plenty of time to hit the spending requirement. Note that the welcome bonus is only available to those who have not previously had the card.
Rewards structure
- 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%; this is the single best cash back rate for grocery spending I am aware of
- 6% cash back on select U.S. streaming subscriptions, including Netflix, Hulu, Disney+, ESPN+, HBO Max, Spotify, Apple TV+, Amazon Music Unlimited, YouTube Premium, YouTube TV, Paramount+, Peacock, Sling TV, and more
- 3% cash back on transit, including taxis, ridesharing, parking, tolls, trains, and buses
- 3% cash back at U.S. gas stations (not including gas at superstores, supermarkets, or warehouse clubs)
- 1% cash back on all other purchases
- $0 intro annual fee for the first year, then $95(Rates & Fees)
- 2.7% foreign transaction fees, so best used for domestic purchases
To put the grocery category in perspective: if you spend $500 a month at supermarkets, you would earn $360 per year in cash back from that category alone, which more than covers the $95 annual fee. The 1% on everyday spending is the weak spot, so this card works best as a specialist paired with a flat-rate card for non-bonused purchases.
Link: Learn more about the Blue Cash Preferred® Card from American Express
5. Chase Freedom Flex℠ Credit Card
The Chase Freedom Flex is a no annual fee card that offers up to 5% cash back in rotating quarterly spending categories. Maximizing these rotating categories is an easy way to rack up cash back, and we sometimes see bonuses on things like restaurants, gas stations, hotels, Amazon, PayPal, and more. It is also a great card to hold long term, since it helps your credit score and costs you nothing.
Welcome bonus
The card is currently offering a welcome bonus of $200 cash back (20,000 points) after spending $500 within the first three months. Chase’s typical application rules apply, including the 5/24 rule.
Rewards structure
- 5% cash back in rotating quarterly bonus categories on up to $1,500 in spending per quarter
- 5% cash back on travel purchased through Chase Travel℠
- 3% cash back on dining, takeout, and eligible delivery services
- 3% cash back on drugstores
- 1% cash back on all other purchases
- No annual fee
Link: Learn more about the Chase Freedom Flex℠ Credit Card
Things to consider before applying for a cash back card
Cash back cards work best as a system
The best cash back setups involve more than one card. The Citi Double Cash covers non-bonused everyday spending at 2%. The Capital One Savor covers dining, groceries, and entertainment at 3%. The Amex Blue Cash Preferred covers supermarkets and streaming at 6%. The Chase Freedom Flex adds 5% in rotating categories. None of these cards are at their best in isolation, and the good news is that holding multiple no annual fee cards costs you nothing extra while helping your credit score long term.
Cash back vs. transferable points
It is worth noting that some of the cards on this list can be converted into transferable points with the right card pairing. The Citi Double Cash earns ThankYou points that can be transferred to airline and hotel partners. The Capital One Savor earns cash back that can be converted into Capital One miles. The Chase Freedom Flex earns Ultimate Rewards points that can be transferred to Chase’s travel partners. If you ever decide you want travel rewards instead of cash back, you may not need to switch cards at all.
Foreign transaction fees matter
Most of the cards on this list charge foreign transaction fees. If you travel internationally, the Savor is a particularly strong choice since it earns 3% on dining and entertainment even abroad, with no foreign transaction fees.
The 1% problem
Some cards on this list earn only 1% on non-bonused spending. That is not a great return. I would not use those cards for everyday purchases that do not fall into bonus categories. If you are not earning at least two cents back on the dollar, you are leaving money on the table.
Bottom line
There are plenty of great cash back credit cards out there, and the best option for you will depend on the categories in which you spend the most.
If you want to keep things simple and want a no annual fee card for everyday spending, you cannot go wrong with the Citi Double Cash. If you spend a lot on dining, groceries, and entertainment, the Capital One Savor is an underrated and well-rounded no annual fee option. If supermarkets and streaming dominate your budget, the Amex Blue Cash Preferred is in a class of its own. The Chase Freedom Flex adds rotating quarterly categories to the mix, and is an excellent complement to any of the above. And if you have significant assets with Bank of America or Merrill, the Premium Rewards Card at the Premier tier offers the highest flat-rate cash back available anywhere.
None of these cards are at their best in isolation. The ideal setup combines a flat-rate card for everyday spending with a specialist card for your biggest bonus categories.
Cash back credit card FAQs
The following links will direct you to the rates and fees for mentioned American Express Cards. These include: Blue Cash Preferred® Card from American Express (Rates & Fees).
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