Key takeaways

  • Cash back cards that feature rotating bonus categories reward you higher cash back rates for spending on select categories each quarter.
  • Chase and Discover categories change from quarter to quarter and require activation in order to secure the higher rewards rate.
  • While most rotating bonus category cards don’t release their categories for the year ahead of time, you can view previous years’ categories to get a better idea of what to expect.

This piece was last updated on Sept. 15, 2023 to reflect current credit card details.

Cash back credit cards reward you on purchases you make by putting some money back into your account, yet they all reward you differently. Some will provide you with flat-rate cash back on everything you buy, and others will offer higher rewards on certain purchases.

There’s also a third group of cash back credit cards: cards with rotating bonus categories. These cards offer a higher cash back rate (typically 5 percent) in categories that rotate on a quarterly basis.

Below, we’ll take a look at whether or not three major issuers — Chase, Discover and Citi — offer cash back credit cards with bonus categories. Read on for the full breakdown of the current bonus categories on these cards.

Chase 2023 rotating categories

The only Chase credit card (currently available for application) with rotating bonus categories is the Chase Freedom Flex℠*. The card offers 5 percent cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1 percent), 5 percent cash back on Chase Ultimate Rewards travel purchases, 5 percent cash back on Lyft rides (through March 2025), 3 percent cash back on dining and drugstore purchases and 1 percent cash back on all other purchases.

Note, the issuer announces categories one quarter at a time. Here’s what the Chase Freedom Flex 2023 bonus categories look like so far, compared to its 2022 offerings:

Quarter Chase 2022 categories Chase 2023 categories
Q1: January to March
  • Grocery stores (excluding Walmart and Target)
  • eBay
  • Target
  • Grocery stores (excluding Walmart)
  • Fitness club and gym memberships
Q2: April to June
  • Amazon.com
  • Select streaming services
  • Lowes (in-store and online)
  • Amazon
Q3: July to September
  • Gas stations
  • Car rentals
  • Select entertainment
  • Music theatres
  • Gas stations
  • Electric vehicle charging
  • Select live entertainment
Q4: October to December
  • Walmart purchases
  • PayPal purchases
  • Wholesale clubs
  • Select charities
  • PayPal

Discover 2023 rotating categories

The Discover it® Cash Back, Discover it® Student Cash Back and Discover it® Balance Transfer offer 5 percent cash back (after activation) on up to $1,500 in rotating category purchases each quarter, then 1 percent back, plus 1 percent on all other purchases. All three cards also include Discover’s first-year Cashback Match™ welcome offer. For example, if you earn $200 in cash back by the end of your first year of card membership, Discover will award you an additional $200, for a total of $400 in cash back earnings.

Unlike in past years, Discover now releases its categories one quarter at a time. Here’s a look at the 2023 Discover cash back calendar so far, along with its 2022 bonus categories for comparison:

Quarter Discover 2022 categories Discover 2023 categories
Q1: January to March
  • Grocery stores (excluding Walmart and Target)
  • Fitness clubs
  • Gym memberships
  • Grocery stores
  • Drug stores
  • Select streaming services
Q2: April to June
  • Gas stations
  • Target
  • Restaurants
  • Wholesale clubs
Q3: July to September
  • Restaurants
  • PayPal
  • Gas stations
  • Digital wallets
Q4: October to December
  • Amazon.com
  • Digital wallets
  • Amazon.com
  • Target

Citi 2023 rotating categories

Citi no longer offers cash back cards with rotating categories on a quarterly basis. Previously, it offered the Citi Dividend Card*, which has since been discontinued.

Currently, the card most similar to the Citi Dividend Card is the Citi Custom Cash® Card. The Custom Cash offers 5 percent cash back in your top eligible spending category each billing cycle (on up to $500 each billing cycle, then 1 percent), plus 1 percent back on all other purchases. This means you could earn $25 back per billing cycle, $75 per quarter and $300 per year.

Categories that qualify for 5 percent back include:

  • Restaurants
  • Gas stations
  • Grocery stores
  • Select travel and transit
  • Select streaming services
  • Drugstores
  • Home improvement stores
  • Fitness clubs
  • Live entertainment

The bottom line

So, should you get a 5 percent rotating bonus category card? If you’re willing to put in the work, such as enrolling in bonus categories and making sure you use the card for the right purchases, this type of credit card can yield lucrative rewards. Plus, the rotating category cash back cards currently available don’t charge annual fees, so there’s no pressure for you to spend enough to justify the card’s cost.

Before you make the call to apply, consider reading through our list of the best cash back credit cards for 2023. You just might find another option that better suits your spending style and needs.

*The information about the Chase Freedom Flex℠ and Citi Dividend Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.