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
- 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.
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.