The best 5 cash back credit cards of 2024

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The best cash back credit cards help you earn rewards on all your everyday purchases. These cards often come with no annual fee, letting you enjoy all the perks of a credit card without worrying about the yearly cost.

There are many types of cash back credit cards, from flat-rate cards to cards with rotating bonus categories. Some cards may come with sign-on bonuses, while others have added perks like travel insurance or purchase protection.

Here are some of our picks for the best cash back credit cards.

The best cash back credit cards

• Best flat rewards rate: Wells Fargo Active Cash® Card
• Best for everyday spending: Chase Freedom Unlimited®
• Best for online shopping: Prime Visa
• Best for groceries: Blue Cash Preferred® Card from American Express 
• Best rotating bonus categories: Discover it® Cash Back

Best flat rewards rate: Wells Fargo Active Cash® Card

Rewards: Cardholders earn an unlimited flat 2% cash rewards on purchases. It’s a straightforward way to earn rewards without keeping track of rotating categories.

Welcome bonus: New cardholders can earn a cash reward bonus after spending a certain amount within the first few months.

Annual fee: $0

This card offers a simple, straightforward way to earn cash back on every purchase. Cardholders earn an unlimited 2% cash rewards on all purchases, with no categories to track or activate. 

The card also features a generous welcome bonus, 0% intro APR on purchases and balance transfers, and no annual fee, making it an excellent choice for those seeking a no-fuss cash back option.

Best for everyday spending: Chase Freedom Unlimited®

Rewards rate: This card earns 5% cash back on travel through Chase Ultimate Rewards, 5% cash back on Lyft (through March 2025), 3% back on dining and drugstore purchases, and 1.5% cash back on all other purchases.

Welcome bonus: New cardmembers can earn a cash bonus after spending a set amount within three months of account opening.

Annual fee: $0

The Freedom Unlimited is a versatile cash back card that rewards cardholders across a range of popular spending categories. Earn 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstore purchases, and 1.5% on all other purchases. 

The card also offers a substantial welcome bonus, 0% intro APR on purchases and balance transfers, and the flexibility to redeem cash back for travel, gift cards, and more through the Chase Ultimate Rewards portal.

Best for online shopping: Prime Visa

Rewards rate: Earn 5% cash back at Amazon and Whole Foods Market, 5% back on Chase Travel purchases, 2% back at gas stations, restaurants, and on local transit and commuting, and 1% cash back on other purchases.

Welcome bonus: Get a $100 Amazon gift card immediately upon approval

Annual fee: $0 with Amazon Prime membership

If you're a regular at Whole Foods or shop online on Amazon, this card is hard to beat. Earn 5% back on Amazon.com and Whole Foods Market purchases, 2% at restaurants, gas stations, and drugstores, and 1% on all other purchases. 

Cardholders also receive a generous Amazon gift card upon approval and can take advantage of exclusive Prime member perks. Note that an Amazon Prime membership is required to apply.

Best for groceries: Blue Cash Preferred® Card from American Express

Rewards rate: Earn 6% cash back on up to $6,000 spent at U.S. supermarkets each year (then 1% cash back), 6% cash back on select U.S. streaming services, 3% cash back on transit, 3% cash back at U.S. gas stations, and 1% cash back on other purchases.

Welcome bonus: New cardholders can earn a bonus statement credit after spending a certain amount after the first six months of opening a card.

Annual fee: $0 introductory fee for the first year, then $95 annual fee after. See rates and fees.

Though this card comes with an annual fee after the first year, if you spend a decent amount on groceries, the cash back savings will easily offset the cost. 

The card also features a welcome bonus, 0% intro APR on purchases and balance transfers, and valuable entertainment credits. 

Best rotating bonus categories: Discover it® Cash Back

Rewards rate: Earn 5% cash back on up to $1,500 spent in rotating bonus categories each quarter (then 1% cash back), plus 1% cash back on other purchases.

Welcome bonus: Discover will match all the cash back you earn in the first 12 months of opening the card.

Annual fee: $0

This card offers 5% cash back on everyday purchases in activated categories each quarter, including Amazon.com, grocery stores, restaurants, gas stations (up to the quarterly maximum). All other purchases earn unlimited 1% cash back. 

Discover will also match all the cash back you've earned at the end of your first year, automatically. The card has no annual fee and features a 0% intro APR on purchases and balance transfers.

How do cash back credit cards work?

Cash back credit cards give you a percentage of cash back on everything you buy. For example, if you had a 2% cash back card and purchased something worth $100, you’d receive $2 in cash back.

The cash back percentage varies depending on the card and type of purchase. Some cards offer a flat rate on all purchases, while others provide higher cash back rates for specific categories like groceries or gas. You can redeem cash back as a statement credit, check, or direct deposit.

Many cash back cards don’t come with annual fees; some may also provide 0% introductory APR offers. While you may be able to carry an interest-free balance for a while, it’s smart to pay off your balance in full each month.

Here’s a closer look at the different types of credit card rewards and how to determine which type is right for you.

Types of cash back credit cards

There are several types of cash back credit cards, each with its own rewards structure: 

• Flat-rate cash back cards: These cards offer a consistent cash back rate (usually 1.5%-2%) on all purchases, regardless of category. 
• Tiered cash back cards: These cards provide higher cash back rates (often 3%-6%) on specific spending categories like groceries, gas, or dining, and a lower rate (typically 1%) on all other purchases. 
• Rotating category cash back cards: These cards offer higher cash back rates (up to 5%) on categories that change quarterly, such as grocery stores, restaurants, or gas stations. Cardholders typically need to activate the categories each quarter and are subject to a quarterly spending cap. 

Pros and cons of cash back credit cards

If you want a simple and easy way to earn rewards on your spending, a cash back card could be a good option. But they aren’t for everyone, especially those who want to earn travel rewards or embrace the flexibility of miles and points.

Here are some advantages and disadvantages of cash back credit cards.

How to choose the best cash back credit card

The best cash back credit cards have different rewards and features, which can make it challenging to narrow down your options. Before you choose a card, there are some important steps to walk through. Here's a rundown of the main factors you'll want to consider before you pick a cash back card.

Cash back rates

Compare the earn rates across different categories on each card. Some offer unlimited flat-rate cash back, while others have bonus categories. You want to match higher rates to your top spending areas.

For example, the Blue Cash Preferred Card earns 6% back on groceries and streaming (up to a $6,000 annual limit). 

It would be a good pick for a household spending $500 per month on those categories — as you can earn $360+ back annually.

Redemption values 

Look at the cash back value when redeemed for statement credits. Ideally, one cent per point or more is best. You should also check if there are other possible redemptions like gift cards or travel, that may increase value.

The Wells Fargo Active Card offers fixed 2% cash back — or two cents per $1 spent. It's a simple and straightforward way to get money back on your spending.

On the other hand, the Chase Freedom Flex offers more redemption possibilities through the Chase Ultimate Rewards portal, stretching the cash back value further.

Welcome bonus

Most cards offer large one-time welcome bonuses for spending a certain amount within 3-6 months of opening the account. These bonuses can provide huge value, especially if there's no annual fee to factor in.

For example, the Chase Freedom Flex currently offers $200 cash back for spending $500 in the first three months. That's a 20% cash rebate on that initial $500 spend.

Foreign transaction fees 

If you travel internationally, having no foreign transaction fees can save you 3% on purchases abroad. Cards like Wells Fargo Active Cash come with this useful perk. 

Bottom line

For regular spenders who are looking for an easy way to earn rewards, a cash back card can be worth it.

But, like with any credit card, it’s important to make sure you’re using your card responsibly. This means paying your balance off on time and in full each month. From there, you'll want to compare all the best card options to find the best cash back card for your needs.

[Disclaimer]: *Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visitamericanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.