Some cash back credit cards have a Discover it® Cash Back and Discover it® Student Cash Back take a different approach.
Cardholders can earn a flat 1% cashback on all regular spend using both cards, but they can also earn a maximum Get 5% cashback on $1,500 (activation required). After you reach that limit, you'll earn 1% cash back on your additional purchases in these rotating categories. Both cards have no annual fee, making them a good choice to keep in your wallet.
Discover also takes a different approach when it comes to welcome bonuses. Instead of a traditional cash bonus earned upon meeting minimum spend requirements, Discover equates to all rewards earned during his first year of card membership. So, if you earned $200 cash back in your first year, at the end of the year you'll receive another $200 through Cashback Matches on Discover for a total of $400 cash back.
If you are considering either Discover it Cashback or Discover it Student Cashback, you need to know which categories offer higher cashback rewards. Learn about Discover's rotating categories for 2023 and how to get the most out of your cashback calendar.
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Discover's 5% Cashback Calendar for 2023
Discover's cash back bonus categories change quarterly, so cardholders can consistently choose categories that earn 5% cash back. It helps that Discover includes categories that most people can use.
If your goal is to maximize your rewards, familiarize yourself with his Discover cashback calendar for 2023 so far and compare details from previous year's calendar to find out which spending category is consistent over time.
| Quarters | Discovered 2021 Categories | Discovered Categories 2022 | 2023 Discovery Categories |
|---|---|---|---|
| Q1: January-March |
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| Q2: April to June |
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| Q3: July to September |
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| Q4: October-December |
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As you can see, grocery has remained a consistent category for the last three years. However, in Q1 2023, fitness club and gym memberships will be replaced by drug stores and some streaming services.
Unlike previous years when Discover released all cashback categories at once, the issuer has adopted a new approach where he releases categories every quarter at a time. . This change may not be welcomed by existing cardholders accustomed to seeing everything at once and planning accordingly, but it's not uncommon among rotating category cards.
How to enable the Discover category
You cannot earn the 5% cash back bonus with the Discover it Cash Back card or Discover it Student Cash Back unless you activate this bonus feature on your card quarterly. Luckily, bonus categories can be easily activated on your credit card's online account page.
If you are unsure whether you have activated the Quarterly Bonus category, you can also check using the Discover website. On the Cash Back Calendar page, you can click Login to Activate.
Make the most of Q1 bonus categories
In the first quarter of 2023 (January-March), you can earn 5% at grocery stores, drug stores, and select streaming services. Up to $1,500 for the quarter after activation and 1% thereafter. To make the most of these bonus categories, consider the following tips.
- Stock your pantryGrocery purchases at supermarkets, local grocery stores, bakeries, grocery delivery services, etc. count in this category, but purchases at wholesale clubs and locations like Walmart and Target do not. Hmm. Our 5% cashback rate on groceries is one of the highest on the market. Cards such as American Express's Blue Cash Preferred® Card are an exception. This card offers 6% cashback on US supermarket purchases (up to $6,000 annually, then 1% thereafter). — So pull out Discover it Cash Back whenever you shop for groceries this quarter.
- Link your card to your streaming service accountEarn more cash back as well as video streaming services like HBO Max and Amazon Prime Video. Services like Google Play, YouTube Music, iHeartRadio, and Spotify also count in this category.
- Make a variety of purchases at the drugstore. Need to pick up a case of beer? Got some birthday cards to send? Besides picking up prescriptions, there are other ways to maximize this category with your regular spending.
How to redeem Discover rewards
Different from other cash back credits Discover it Cash Back and Discover it Student Cash Back allow you to redeem rewards in the form of direct deposits to your account or credits on your statement. increase.
If you have at least $5 accumulated in your rewards account, you can also redeem your rewards for a gift card. Cardmembers can redeem cash back for physical or digital partner gift cards with 5-20% added value on each gift card (depending on merchant). Partner gift cards range from $5 to $200 in $5 increments. You can also donate cashback earnings to charity or make purchases from Amazon.com and PayPal.com.
Perks earned with the Discover credit card do not expire as long as your account is open, so you can continue to use them.
Conclusion
Discover it Cashback and Discover it Student Cashback make it easy to get rewards with no annual fee, but beware of the rotating bonus categories they offer You can get a lot out of either card by paying . This is especially true for her first year as a cardholder, as Discover matches all rewards earned in her first 12 months. Activate bonus rewards quarterly so you don't miss out!