4% Back On Dining With The New Capital One Savor

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Capital One has today announced that they’re rebranding one of their existing cards, and also introducing a new card. Both of these are excellent options, especially for those who spend a lot on dining and entertainment.

The Capital One SavorOne Cash Rewards Credit Card

The Capital One® SavorOne(SM) Cash Rewards Credit Card was introduced just under a year ago and has recently been rebranded. It’s a popular card for those who spend a lot in dining.

Here are the details of the card:

  • Annual fee: None
  • Welcome bonus: $150 cash bonus after you spend $500 on purchases within the first 3 months from account opening
  • Bonus categories: Earn unlimited 3% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
  • Foreign transaction fees: None

The Capital One Savor Cash Rewards Credit Card

Capital One has just introduced the new Capital One® Savor® Cash Rewards Credit Card, which is the premium version of the Capital One SavorOne Card. Here are the details of the card:

  • Annual fee: $0 intro annual fee for the first year, $95 after that
  • Welcome bonus: Earn a one-time $500 cash bonus after you spend $3,000 on purchases within the first 3 months from account opening
  • Bonus categories: Earn unlimited 4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
  • Foreign transaction fees: None

What qualifies as dining and entertainment?

Here’s how Capital One defines dining and entertainment:

What counts as dining?

Purchases at restaurants, cafes, bars, lounges, fast-food chains and bakeries.

What counts as entertainment?

Buying tickets to a movie, play, concert, sporting event, tourist attraction, theme park, aquarium, zoo, dance club, pool hall or bowling alley. Also, making purchases at record store and video rental locations. This excludes non-industry entertainment merchant codes like cable, digital streaming, and subscription services.

My thoughts on the cards

Both of these are excellent cards for those who spend a lot on dining and want to earn cash back, rather than travel rewards:

  • For someone who wants a no annual fee card that earns a good reward for dining, getting 3% cash back for dining and entertainment with the Capital One SavorOne Card is tough to beat; the card even has quite a generous welcome bonus for a no annual fee card
  • The premium Capital One® Savor® Cash Rewards Credit Card has a phenomenal welcome bonus for a cash back card, in particular since the $95 annual fee is waived for the first year

Long term, which of these cards is better? The difference between the cards is that you get an extra 1% back on dining and entertainment on the Capital One® Savor® Cash Rewards Credit Card, so you’d need to spend $9,500 in those categories to breakeven on the $95 annual fee after the first year.

That’s a pretty high threshold, though at the same time the much bigger welcome bonus on the Capital One® Savor® Cash Rewards Credit Card can be viewed as offsetting the annual fee. The incremental welcome bonus of $350 will cover your annual fee for the first four years, and then some.

This card won’t be for everyone. For example, I use the Chase Sapphire Reserve® Card for my dining spend, and the card offers 3x points on dining. I value those points at 1.7 cents each, so to me that’s the equivalent of a 5.1% return.

However, not everyone is looking for travel rewards, and for someone who spends a lot on dining, this could be a great option.

Bottom line

The Capital One SavorOne Card and Capital One® Savor® Cash Rewards Credit Cardare excellent options for those looking to earn cash back rewards for dining and entertainment spend.

I’d say the new Capital One® Savor® Cash Rewards Credit Card is especially compelling when you consider the waived annual fee for the first 12 months, the big welcome bonus, and the 4% cash back on dining and entertainment.

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Comments

  1. Would be nice to get 4% cash back at Disneyland. Think that’s probably industry leading. Is it Visa (Costco eligible) or Mastercard?

  2. For cash back the Uber Card beats this for dining as it also gives a 4% return that can be redeemed for cash back, and no annual fee.

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