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The 7 best cash-back credit cards

Cash back is the most honest reward currency there is: no award charts, no blackout dates, no point valuations to argue about. Here is how the leading cards differ, and how to tell which one fits your spending.

Last reviewed: · Reviewed by the TheSavvyAmericans editorial team

Important: Cash-back rates, category lists, caps and annual fees are set by the issuer and change regularly, so confirm current terms on the issuer's own page before applying. Rewards are only a gain if you pay your statement balance in full each month. Interest on a carried balance will exceed anything these cards pay back.

Key takeaways

  • 1Cash-back cards come in three shapes: flat rate (one rate on everything), fixed categories (a permanent bonus on groceries or dining), and rotating categories (a bonus that changes each quarter and has to be activated). Picking the right shape matters more than picking the right brand.
  • 2Our top pick is the Wells Fargo Active Cash for its flat rate on every purchase with no annual fee. If your grocery bill is large, the Blue Cash Preferred will usually earn more even after its fee.
  • 3Watch for caps. Several of the highest headline rates only apply up to a quarterly or annual spending limit, after which you drop to a base rate that is often lower than a plain flat-rate card.
  • 4Cash back is worthless if you carry a balance. A typical card APR costs several times what even the best cash-back rate pays, so clear the statement in full or the math runs backwards.
Advertising disclosure: TheSavvyAmericans may receive compensation when you apply for or open a product through links on this page. This does not influence our editorial evaluations. Products are reviewed using a documented methodology. Learn how we make money.

The 7 best cash-back credit cards

We compared cash-back cards on earning structure, how the rates hold up against typical U.S. household spending, the caps and activation rules attached to the headline rate, and what it costs to keep the card. We do not publish rates or fee amounts because issuers revise them often; verify current terms before applying.

Cash-back credit cards compared at a glance
#ServiceBest forRatingReward structureAnnual feeCaps
1Wells Fargo Active Cash CardBest overall cash back4.7 / 5Flat rate, all purchasesNone (verify current)None on base earning
2Chase Freedom UnlimitedBest flat rate plus categories4.6 / 5Flat rate plus fixed categoriesNone (verify current)None on base earning
3Blue Cash Preferred Card from American ExpressBest for supermarket spending4.5 / 5Fixed bonus categoriesYes (verify current)Annual cap on supermarket bonus
4Discover it Cash BackBest rotating categories4.4 / 5Rotating quarterly categoriesNone (verify current)Quarterly cap on bonus rate
5Citi Double Cash CardBest no-category flat rate4.3 / 5Two-stage flat rateNone (verify current)None
6Capital One Savor Cash Rewards Credit CardBest for dining and entertainment4.2 / 5Fixed bonus categoriesNone on standard version (verify current)None on core categories (verify current)
7Bank of America Customized Cash RewardsBest choose-your-own category4.1 / 5Choose-your-categoryNone (verify current)Quarterly combined cap
#1Rank
Editor's ChoiceBest overall cash back

Wells Fargo Active Cash Card

4.7 / 5

One rate, every purchase, no annual fee, no activation, no caps. Active Cash is the card that wins by refusing to be clever, and for most households a strong uncapped flat rate beats a bonus structure they will forget to optimize.

Pros

  • Uncapped flat rate on all purchases
  • No annual fee
  • Cell-phone protection when you pay the bill with it
  • Intro APR offer on purchases and qualifying transfers (verify current)

Cons

  • Category cards earn more on groceries or dining
  • Charges a foreign transaction fee
  • No transferable-point upgrade path
Reward structure
Flat rate, all purchases
Annual fee
None (verify current)
Caps
None on base earning
Activation needed
No
Visit Wells Fargo

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#2Rank
Best hybridBest flat rate plus categories

Chase Freedom Unlimited

4.6 / 5

Freedom Unlimited pays a base rate on everything and layers higher rates on dining, drugstores and travel booked through Chase, with no annual fee. It also earns Ultimate Rewards, so if you ever add a Sapphire card the same rewards become transferable points.

Pros

  • Base rate on everything plus bonus categories
  • No annual fee
  • Upgrade path to transferable points
  • Intro APR offer on purchases (verify current)

Cons

  • Base rate trails the top flat-rate cards
  • Best point value needs a paired premium card
  • Charges a foreign transaction fee
Reward structure
Flat rate plus fixed categories
Annual fee
None (verify current)
Caps
None on base earning
Activation needed
No
Visit Chase

Official site opens in a new tab

#3Rank
Best for groceriesBest for supermarket spending

Blue Cash Preferred Card from American Express

4.5 / 5

For families who spend seriously at U.S. supermarkets, this card usually out-earns everything else on the list even after its annual fee, with additional bonus rates on select streaming, transit and U.S. gas stations.

Pros

  • Highest common earn rate at U.S. supermarkets
  • Bonus rates on streaming, transit and U.S. gas
  • Strong Amex purchase and return protections
  • Intro APR offer on purchases (verify current)

Cons

  • Annual fee, sometimes waived the first year (verify current)
  • Supermarket bonus is capped annually
  • Warehouse clubs and superstores usually do not count as supermarkets
Reward structure
Fixed bonus categories
Annual fee
Yes (verify current)
Caps
Annual cap on supermarket bonus
Activation needed
No
Visit American Express

Official site opens in a new tab

#4Rank
Best first yearBest rotating categories

Discover it Cash Back

4.4 / 5

Quarterly bonus categories you activate, up to a spending cap, plus a first-year match on every dollar of cash back you earn. That match makes year one genuinely hard to beat; year two depends on whether the categories suit you.

Pros

  • First-year match on all cash back earned
  • Rotating categories often cover big spending areas
  • No annual fee and no foreign transaction fee
  • Free FICO score access

Cons

  • Categories must be activated every quarter
  • Bonus earning capped per quarter
  • Acceptance abroad is narrower than Visa or Mastercard
Reward structure
Rotating quarterly categories
Annual fee
None (verify current)
Caps
Quarterly cap on bonus rate
Activation needed
Yes, each quarter
Visit Discover

Official site opens in a new tab

#5Rank
Best for payersBest no-category flat rate

Citi Double Cash Card

4.3 / 5

Double Cash pays you once when you buy and again when you pay the balance off, which effectively builds the reward around good repayment behavior. No annual fee, no categories, and rewards that can convert into Citi ThankYou points.

Pros

  • Earns on purchase and again on payment
  • No annual fee, no categories
  • Rewards convert to ThankYou points
  • Intro APR offer on balance transfers (verify current)

Cons

  • Half the reward waits until you pay
  • No bonus categories
  • Charges a foreign transaction fee
Reward structure
Two-stage flat rate
Annual fee
None (verify current)
Caps
None
Activation needed
No
Visit Citi

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#6Rank
Best for diningBest for dining and entertainment

Capital One Savor Cash Rewards Credit Card

4.2 / 5

Savor concentrates its bonus rates on restaurants, entertainment, popular streaming services and grocery stores, which is an unusually good fit for households whose discretionary spending runs to eating out rather than commuting.

Pros

  • Strong rates on dining and entertainment
  • Grocery-store bonus included
  • No annual fee on the standard version (verify current)
  • No foreign transaction fee

Cons

  • Weak base rate outside the bonus categories
  • Entertainment category definition can be narrow
  • Superstores usually excluded from grocery bonus
Reward structure
Fixed bonus categories
Annual fee
None on standard version (verify current)
Caps
None on core categories (verify current)
Activation needed
No
Visit Capital One

Official site opens in a new tab

#7Rank
Best for BofA clientsBest choose-your-own category

Bank of America Customized Cash Rewards

4.1 / 5

You pick the bonus category (gas, online shopping, dining and others) and can change it monthly, with a second automatic bonus at grocery stores and wholesale clubs. Existing Bank of America clients can boost the rate through the Preferred Rewards program, which is where this card gets genuinely competitive.

Pros

  • You choose the top bonus category and can change it
  • Extra bonus at grocery stores and wholesale clubs
  • No annual fee
  • Preferred Rewards can raise the rate significantly

Cons

  • Bonus earning is capped per quarter
  • The best rates require large BofA or Merrill balances
  • Charges a foreign transaction fee
Reward structure
Choose-your-category
Annual fee
None (verify current)
Caps
Quarterly combined cap
Activation needed
Category selection only
Visit Bank of America

Official site opens in a new tab

Ratings are TheSavvyAmericans editorial scores based on the criteria in the methodology section below, not user reviews or paid placements. Features and pricing change often, so confirm the current details on each provider’s official site before you sign up.

How we picked and scored these cards

We rank independently, and compensation does not set the order. Because rates and fees move, we score the durable parts of a cash-back card: how the earning is structured, whether the headline rate survives contact with real spending, and what strings are attached to it.

  • Earning structure: flat rate, fixed categories or rotating categories, and how well that fits normal U.S. household spending.
  • Caps and conditions: quarterly or annual limits, activation requirements and category exclusions that quietly reduce the real rate.
  • Cost to hold: whether an annual fee is justified by the extra earning it unlocks.
  • Redemption: how easily rewards convert to statement credit, deposit or points, and whether they expire.
  • Extras: intro APR offers, purchase and phone protections, and free score access.

Good to know: Ratings are our editorial assessments, not user reviews. We publish no specific rates, caps in dollars or fee amounts, because they change without notice. Confirm current terms on the issuer's application page.

Flat rate or bonus categories: which earns you more

This is the only real question in cash back, and you can settle it in about ten minutes with your last three statements. Add up what you spent in the bonus categories a card offers, apply its rate, then apply a good flat rate to your total spending instead. Whichever number is bigger wins. Most people discover the gap is smaller than they expected, which is an argument for whichever card they will actually remember to use.

The three cash-back structures compared
StructureStrengthWeakness
Flat rateSame rate everywhere, nothing to manageNever the top rate in any one category
Fixed categoriesHigh rate where you reliably spendWeak base rate outside those categories
Rotating categoriesHighest headline rates availableQuarterly activation, caps, and categories you may not use
Choose-your-categoryYou aim the bonus at your own spendingCaps apply, and best rates may need a banking relationship

Good to know: A practical middle path many people land on: one no-fee flat-rate card as the default, plus one category card for the single category where your spending is genuinely concentrated. Two cards is usually where the added complexity stops paying for itself.

The fine print that eats your cash back

  • Category caps: many headline rates apply only up to a quarterly or annual spending limit, then drop to a base rate.
  • Merchant coding: a store is categorized by its merchant code, not by what it sells. Superstores and warehouse clubs often do not count as supermarkets.
  • Activation: rotating-category cards pay the base rate on bonus purchases if you forget to activate that quarter, and it is not usually backdated.
  • Redemption minimums: some programs only let you cash out in fixed increments, which can leave rewards stranded.
  • Forfeiture on closure: closing an account before you redeem can forfeit the balance you have built up.
  • Foreign transaction fees: a fee on overseas spending will typically exceed anything the card earns back on those purchases.

Good to know: One more, and it is the big one: interest. Carrying a balance at a typical credit-card APR costs several times what the best cash-back card pays. If you are revolving a balance, a balance-transfer card is a far better use of your next application than a rewards card.

Frequently asked questions

Which cash-back card earns the most?
It depends entirely on where you spend. A grocery-heavy household usually earns most with a supermarket card like Blue Cash Preferred, even after its annual fee. Someone with spending spread evenly across categories typically does better with an uncapped flat-rate card such as Wells Fargo Active Cash. Run your own three-month numbers rather than trusting a headline rate.
Is cash back better than points or miles?
Cash back is simpler and its value never fluctuates, which is a real advantage. Transferable points can be worth more per dollar when redeemed well for travel, but only if you actually redeem them that way. If your points tend to sit unused or get cashed out at base value, cash back is very likely the better choice.
Does cash back expire?
On most major cards, rewards do not expire while the account is open and in good standing, but this varies by issuer and closing the account can forfeit an unredeemed balance. Check the rewards terms of the specific card, and redeem periodically rather than letting a large balance sit.
Is cash back taxable income?
Rewards earned as a rebate on your own spending are generally treated as a discount rather than income, so they are typically not taxable. Rewards earned without spending, such as some account-opening bonuses paid in cash, can be treated differently. If a bonus is large or your situation is unusual, ask a tax professional.

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