Discover it® Cash Back review: Discover’s flagship rewards card

Earning cash back from your credit card is an easy way to save a little money on your usual spending. In exchange for a bit more effort than a typical cash back card, the Discover it® Cash Back packs one of the highest rewards rates on various everyday expenses.

Activating your categories, tracking your spending and adjusting your spending habits to the quarterly categories can make this card one of the best for maximizing earnings on routine purchases. This extra effort could also make Discover’s Cashback Match the most valuable first-year offer for a personal cash back card.

The Discover it Cash Back can be an excellent tool for earning cash back, but you’re at the mercy of Discover’s rotating category calendar. You should consider another no-annual-fee credit card if you’re not a fan of the extra legwork it takes to maximize rotating categories.

The Discover it® Cash Back isn’t the only rotating rewards card with a high cash back rate, but it stands out from the crowd thanks to its unique first-year offer and low fees.

Rewards rate: Stellar cash back for savvy spenders

Earning cash back with the Discover Cash Back card does take a little effort, as you’ll need to keep track of the rotating bonus categories and enroll each quarter, but the bonus cash is well worth it.

Based on a $15,900 average yearly spend and the latest data from the Bureau of Labor Statistics*, the Discover it® Cash Back has the potential to earn more rewards each year than most other no-annual-fee cash back cards from major issuers — about $399. (5 percent after enrolling in rotating categories each quarter on up to $1,500, then 1 percent) Only the Chase Freedom Flex℠ eclipses it with $493 per year using the same spending formula.

Discover’s rotating categories can fit into your rewards strategy pretty well since they tend to align with seasonal expenses and include at least one major category. For example, January through March has included gym memberships, drug stores or grocery stores in the past as bonus categories — perfect for New Year’s resolutions and flu season.

Although there aren’t any consistent yearly categories, this card may provide the highest rewards rate available on several categories when the opportunity rolls around, such as for gas stations, wholesale clubs and digital wallet purchases. When it’s time to cash in your rewards, you can redeem your Discover rewards for cash back as an electronic direct deposit to your chosen account or as a statement credit to your card balance. You also have the option to use your rewards for gift cards (partner gift cards range from $5 to $200 in increments of $5), charitable donations to select charities or even payments toward Amazon.com.

All reward options carry a 1:1 redemption rate, which is rare when it comes to Amazon.com reward payments and non-cash redemption choices. Discover’s partner gift cards also sweeten the deal by occasionally adding 5 percent to 20 percent value to the balance depending on the merchant.

Welcome offer: Could deliver the best first-year cash rewards value

The Discover it® Cash Back welcome offer differs from the typical sign-up bonus on other cards. Discover offers its Cashback Match program, which takes the total amount of cash back you accumulate at the end of your first year and matches it.

With this program, the size of your new cardholder bonus is up to you — the more you use your Discover it® Cash Back card, the bigger your bonus will be. By maximizing your 5 percent categories’ $1,500 spending cap each quarter after activation, you could stack another $300 on top of the $300 you already earned, then 1 percent. That’s a worthwhile reward for your patience since it’s well above the usual $150 to $200 upfront welcome offer on many other no-annual-fee cash back cards.

Rates and fees: Some of the lowest card costs on the market

Only a few credit cards minimize their rates and fees to the extent Discover cards have. There’s no annual fee, no penalty APR for late payments and no penalty fee for the first time you make a late payment (late payment fees are up to $41 after that). Even the ongoing variable APR could be well below the average current interest rate, making this a potentially great low-interest card.

These rates and fees are some of the lowest you’ll find from a major credit card issuer, which makes for a helpful safety net if you’re learning the ropes for credit cards or rotating categories.

0% APR offer: Solid intro APRs make it a well-rounded card

The Discover it® Cash Back offers new account holders a 0 percent intro APR on purchases and qualifying balance transfers for the first 15 months (then 17.24 percent to 28.24 percent variable). This offer is on par with many no-annual-fee rewards cards’ offers and is generally the longest intro APR on both purchases and balance transfers you’ll find with a rewards card. Just keep in mind there is also the typical intro balance transfer fee of 3 percent, up to 5 percent on future balance transfers (see terms).

When combined with a strong cash back rate, a potentially high welcome offer and limited fees, intro APR periods round out the Discover it® Cash Back as an excellent all-around credit card.

Although the Discover it® Cash Back can be a lucrative credit card, its rotating category program may not suit everyone’s spending habits. Other cards may be more rewarding for your specific purchases or offer unique features that add value.

Rotating categories: Not suitable for everyone

No matter how high a cash back rate may be, it won’t be enough to bring value if it doesn’t suit your spending habits. There’s no guarantee which categories Discover will boost next quarter or whether they’ll align with your biggest expenses or favorite merchants. At the very least, you’ll need to activate and remember your eligible categories each quarter. Your cash back earnings with this card can be hit or miss, so if you’re stuck with incompatible categories for three months the card can’t do much for you.

The 5 percent cash back rotating categories also have a $1,500 combined purchase limit each quarter before your cash back rate drops to 1 percent back on all purchases. You’ll want to track your spending and potentially change how or where you shop every few months to maximize your cash back.

These factors could make this card too high maintenance for some people, especially first-time cardholders who want to start off with a less-strenuous rewards experience.

Perks: Few benefits beyond rewards and limited fees

The Discover it® Cash Back's benefits are somewhat light beyond its cash back and minimal fees. If you rely on traditional perks like purchase and travel protections, perhaps consider other options since Discover has trimmed its card features to focus on its signature low-cost reward offerings.

You’ll have basic perks like $0 fraud liability for unauthorized purchases, free FICO score access and the ability to freeze your card whenever you like. The latter is helpful if you’re unsure whether your card is lost or stolen and you want to buy some time instead of canceling your card immediately — especially since prior recurring expenses, returns, credits, delayed payments, account fees and interest will still occur.

The Social Security Protection perk is pretty in-depth as well, since a screening of this caliber usually requires subscribing to a third-party credit monitoring service. Discover provides it at no additional cost after activation. However, the only remarkable benefit is Discover’s acclaimed customer service. In fact, the issuer consistently ranks at or near the top of J.D. Power’s credit card customer satisfaction surveys. Discover ranked second overall in the most recent 2022 study, having previously won first place five times and tying for the top spot in 2014.

On the other hand, if you’re not as concerned with customer service or won’t run into the fees that Discover waives, a few competing cards offer perks like purchase and travel protections, streaming service annual credits and perks with partner rideshare or food delivery services.

The Discover it® Cash Back is a frontrunner for first-year value with no annual fee, thanks to Discover’s CashBack Match offer. This feature could make the Discover it® Cash Back card a significantly better option for first-year value than competing cards, depending on how much you spend. 

However, you’ll only earn 5 percent cash back on up to $6,000 across the whole year, which amounts to up to $300 back. You’ll earn 5 percent back on up to $1,500 in rotating category purchases each quarter when you activate the bonus category, then 1 percent.

*Based on our formula used to calculate each card’s average rewards rates and average ongoing rewards value, using Bureau of Labor Statistics spending data and an assumed $15,900 yearly spend over three years ($1,325 per month).

Around the Bankrate office, plenty of Discover it® Cash Back fans have found it valuable well beyond its honeymoon period. Bankrate editor Robert Thorpe finds the Discover it® Cash Back fits in with his other credit cards, and he takes advantage of it for the impressive rewards rates on seasonal cash back categories.

I like that the card is versatile. I can sample earning 5 percent cash back in unique areas, such as purchases made with my digital wallet. I can also “rest” my Blue Cash Preferred® Card from American Express for three months and avoid going over that card’s $6,000 annual spending limit at U.S. supermarkets. And, thanks to the Cashback Match, this card effectively lets me earn at least 2 percent cash back for the first year on all my general purchases.*

— Robert ThorpeBankrate editor

*Discover it® Cash Back offers 5 percent cash back on everyday purchases at different places each quarter, enrollment required (on up to $1,500 maximum, 1 percent thereafter). Earn unlimited 1 percent cash back on all other purchases. Discover will automatically match all of the cash back you've earned at the end of your first year with no maximum.

The Discover it® Cash Back is one of the best rotating category cards thanks to its low-cost terms, but you may earn more rewards and enjoy richer card features by selecting another card.

Stacking different cards is a great way to ensure you earn the most rewards. While the Discover it® Cash Back earns a fantastic rate on its quarterly categories, there are better options for travel purchases and purchases outside of those seasonal categories.

If you fall into any of these cardholder profiles, Discover’s flagship credit card can be a great addition to your wallet.

The Discover it® Cash Back is perfect for people who can adjust their spending to take advantage of Discover’s cash back calendar each quarter. Its high-earning rewards scheme maximizes Discover’s Cashback Match bonus, making it one of the best welcome offers for a no-annual-fee card. The Discover it® Cash Back carries perhaps the lowest rates and fees available from a major issuer, and it’s accessible with just a “good” or higher credit score (670+ FICO score).

Although it isn’t the most feature-rich or newcomer-oriented card in its class, the Discover it® Cash Back’s focus on accessibility, affordability and excellent customer service give it all the hallmarks of a great rewards card for those who don’t mind putting in a little elbow grease to make it shine.

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

Dig deeper: Is the Discover it® Cash Back worth it?

We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.

Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).

We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review: