The latest installment of the Discover 5% calendar is in: Eligible Discover cardholders can earn 5% cash back at restaurants and drugstores between Jan. 1 and March 31, 2024.
The increased 5% rate applies on up to $1,500 spent in the first quarter of the year (then you’ll earn 1% back), making it possible to earn up to $75 in bonus cash back. Cardholders must activate the category, or else they’ll earn just 1% cash back on all their purchases.
How does the Discover 5% cash back category work?
To earn 5% cash back in Discover’s rotating categories, you’ll need to have a Discover it® Cash Back, Discover it® Student Cash Back, Discover it® Balance Transfer or Discover® More® card (no longer available to new applicants).
You can activate the Q1 5% cash back rate through your online account or with Discover’s mobile app. Once activated, you will earn 5% cash back on up to $1,500 spent across the bonus categories. After that, you’ll go back to earning 1% cash back on all spending.
Keep in mind that your transactions must be with US merchants in order to qualify for the bonus cash back rate. And you won’t earn 5% cash back on eligible purchases made before you activated, even if they were made in Q1.
How can you redeem your cash back with Discover?
You can redeem your Discover rewards for cash back, either sent to your bank account or applied to your credit card bill. You can also use them for PayPal payments, Amazon.com spending, eligible gift card purchases and donations to participating charities.
Discover does not have any minimum redemption amount, so you can redeem your rewards even if you haven’t accumulated much. On top of that, rewards never expire.
Should you get a Discover credit card to earn 5% cash back?
Discover’s rotating 5% cash back categories are useful, but other cards also offer 5% back in certain categories.
For example, the Chase Freedom Flex℠* earns 5% cash back in bonus categories that rotate each quarter, on up to $1,500 in combined purchases each quarter (as with Discover, cardholders must activate in order to earn 5%). On top of that, the card offers 5% cash back on travel booked with Chase Ultimate Rewards® and 3% cash back on dining and drugstores with no cap.
Neither the Discover cards nor Chase Freedom Flex℠ charges an annual fee, but you can find cards with even stronger rewards and more valuable perks if you’re willing to pay. For example, the Chase Sapphire Preferred® Card charges a $95 annual fee, but comes with benefits such as the ability to elevate your point value by 25% if you redeem for travel through Chase.
Chase Sapphire Preferred® Card
Regular APR
21.49% – 28.49% Variable
On Chase Bank USA, NA’s Secure Website
*The information for the following card(s) has been collected independently by CNN Underscored Money: Chase Freedom Flex℠. The card details on this page have not been reviewed or provided by the card issuer.
What other 5% cash back categories does Discover offer?
Discover hasn’t announced the rest of its 2024 calendar, but in 2023, Discover offered the following quarterly cash back categories:
- Q1: Grocery stores, drug stores and select streaming services
- Q2: Restaurants and wholesale clubs
- Q3: Gas stations and digital wallets
- Q4: Amazon.com and Target
Whatever 5% cash back offers come in 2024, cardholders will have the opportunity to earn up to $300 in bonus rewards over the course of the year. The Discover cards’ 1% base rewards rate isn’t especially impressive, but the card is still a solid choice for consumers who take advantage of the rotating categories.
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