Best 5 Percent Cash Back Cards of 2024

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A 5% cash back card is a good option for people who want to maximize their rewards on specific spending categories. These cards can be great for strategic spenders who can take advantage of rotating or targeted categories. Our top choice is the Chase Freedom Flex® card, which offers great value. Ideal users of 5% cash back cards like the Chase Freedom Flex card include:

Strategic spenders who can track and maximize rotating categories.
Budget-conscious consumers looking to get the most out of their everyday purchases.

Understanding the 5% cash back credit card categories can help you decide if this type of card fits your financial goals.

Why You Can Trust Our List

MoneyGeek rates credit cards by analyzing 32 data points across over 240 popular cards. We update data daily and assess each card quarterly. Key metrics include reward rates, annual fees, and APRs. Ratings consider the card's value against consumer spending models from the U.S. Bureau of Labor Statistics. Our methodology ensures unbiased, fact-based advice, helping users find the best card for their needs and lifestyle. For assessing the best 5% cash back cards we used the same methodology that we use for our overall best cash back credit cards ranking

Overall Best: Chase Freedom Flex®

Chase Freedom Flex® Card

MoneyGeek Rating

4.0/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

PROS
- High cash back on rotating categories
- Good cash back on dining and drugstores
- No annual fee
- Intro APR period
- Welcome bonus
CONS
- Rotating categories require activation
- Requires good to excellent credit
Introductory Offers
- Cash Bonus: Earn a $200 bonus after spending $500 in the first three months.
- Introductory APR: 0% intro APR on purchases and balance transfers for 15 months. After the introductory period, the variable APR ranges from 19.74% to 28.49%.
- Balance Transfer Fee: 3% of the amount of each transfer, with a minimum of $5.
Cash Back
- Rotating Categories: 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter (activation required).
- Fixed Categories: 5% cash back on travel purchased through Chase Travel, 3% on dining and drugstore purchases, and 1% on all other purchases.
- Chase Ultimate Rewards: Points can be redeemed for cash back or transferred to Chase Sapphire cards for travel rewards.
APRs, Fees, and Penalties
- Annual Fee: $0.
- Regular APR: 19.74% - 28.49% variable.
- Penalty APR: Up to 29.99% variable for late or missed payments.
- Balance Transfer Fee: 3% of the transferred amount (minimum $5).
- Late Fees: Up to $40 for missed payments.
- Foreign Transaction Fee: 3% on each transaction made outside the U.S.
Perks & Benefits
- Zero Liability Protection: Protection against unauthorized purchases.
- Extended Warranty Protection: Extends the U.S. manufacturer’s warranty by an additional year on eligible purchases.
- Trip Cancellation/Interruption Insurance: Reimbursement for covered travel disruptions.
- Cell Phone Protection: Coverage for damage or theft when you pay your monthly bill with the card.
- Auto Rental Collision Damage Waiver: Provides primary rental car insurance when you decline the rental company’s insurance.
- DashPass Membership: Complimentary access to DashPass, offering discounts on food delivery with DoorDash.

Grocery Rewards: Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card From American Express

MoneyGeek Rating

4.3/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

The Blue Cash Preferred® is a family-friendly card that rewards 6% on spending at U.S. supermarkets (for the first $6,000 annually) and U.S. streaming plus 3% cash back U.S. gas stations and transit expenses. If you spend in these everyday categories, this card is a great portfolio credit card that combines with a flat rate card to let you earn over 2% over your entire portfolio. You'll need to spend more in these categories to make it worth the annual fee of $95 after the first year. See rates and fees.
PROS
- High cash back on supermarkets and streaming
- Unlimited cash back on gas and transit
- Intro APR for purchases and transfers
- High customer satisfaction
CONS
- Annual fee after first year
- Spending caps and exclusions on supermarket purchases
Introductory Offer Details
- Enjoy a $0 intro annual fee for the first year, then $95 after that. See rates and fees
- Earn a $250 statement credit after spending $3,000 on eligible purchases within the first six months.
- Benefit from 0% intro APR on purchases and balance transfers for 12 months from account opening. After that, a variable APR of 18.24% to 29.24% applies. See rates and fees
Cash Back Details
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
- 6% cash back on select U.S. streaming subscriptions.
- 3% cash back at U.S. gas stations.
- Earn 3% cash back on transit, including taxis/rideshares, parking, tolls, trains, buses and more.
- 1% cash back on all other purchases.
- Cash back is provided as Reward Dollars, redeemable as a statement credit or at Amazon.com checkout.
Other Benefits
- Earn a $84 Disney Bundle Credit: Spend $9.99 or more each month on an auto-renewing Disney Bundle subscription with your enrolled Blue Cash Preferred Card to receive a $7 monthly statement credit. Valid only at DisneyPlus.com, Hulu.com or Plus.espn.com in the U.S.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms apply.

Cash Back Match: Discover it® Cash Back

Discover it® Cash Back Card

MoneyGeek Rating

4.0/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

If you're a strategic spender who doesn't mind tracking category bonuses to get high rewards, the Discover it® Cash Back Card could work for you. It features 5% cash back on rotating categories and a generous 0% intro APR period.
PROS
- Earn 5% cash back on rotating categories
- Enjoy 0% intro APR on purchases and balance transfers
- Cash back match in the first year
CONS
- Bonus categories have a quarterly cap and require activation
- Rotating bonus categories
- Low regular cash back rate
- Introductory Offers
  - Discover matches all the cash back you've earned at the end of your first year, doubling your rewards without any spending minimums or maximums.
- Rewards
  - Earn 5% cash back on everyday purchases at different locations each quarter, such as grocery stores, restaurants, and gas stations, up to a quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- APRS, Fees, and Penalties
  - Enjoy a 0% intro APR for 15 months on purchases. After that, a standard variable APR of 18.49% to 27.49% applies, based on your creditworthiness.
  - No annual fee.
- Perks & Benefits
  - Redeem your rewards for cash at any time.
  - Start shopping and earning rewards in minutes with our digital card, if eligible.
  - Discover helps reduce your personal information exposure online by removing it from select people-search sites, free of charge.

Targeted Spending: Citi Custom Cash® Card

Citi Custom Cash® Card

MoneyGeek Rating

4.3/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

If your spending is focused on one category, the Citi Custom Cash® card offers 5% cash back each billing cycle on your highest spend category, up to $500. It also features no annual fee and a 0% intro APR period of 15 months.
PROS
- 5% cash back on top spending category
- 0% intro APR offer
- No annual fee
CONS
- Cap on bonus cash back rate
- Comes with penalty APR
- Introductory Offers
  - Earn $200 cash back after spending $1,500 within the first six months. This is fulfilled as 20,000 ThankYou Points.
  - Enjoy 0% Introductory APR on balance transfers and purchases for 15 months.
- Rewards
  - Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, then 1% cash back thereafter.
  - Earn unlimited 1% cash back on all other purchases.
  - Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked through the Citi Travel portal until June 30, 2026.
- APRs, Fees, and Penalties
  - After the introductory period, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
  - No annual fee.
- Perks & Benefits
  - No rotating bonus categories to sign up for; your earn adjusts automatically based on your spending.
  - Citi will only issue one Citi Custom Cash Card account per person.

PAIR YOUR 5% CASH BACK CARD WITH A FLAT CASH BACK CARD

5% cash back cards are great for purchases in their rotating or specific high-reward categories. Adding a 1.5% or 2% cash back card to your rotation can benefit you in the long run when you use it to spend on other everyday purchases.

What Is a 5% Cash Back Card and How Does It Work?

A 5% cash back credit card means you earn 5% cash back on specific categories like gas or groceries, which often rotate quarterly. Typically, there's a cap on the spending that qualifies for the 5% rate, usually around $1,500 per quarter. After reaching this cap, the cash back rate drops to 1%. This setup allows you to maximize rewards on everyday purchases within the specified categories.

2% or 5% Cash Back Card?

Whether a 2% cash back card or a 5% cash back card is the better option depends on your spending habits. 2% cash back cards like the Citi Double Cash® Card offer a flat 2% back on all purchases, making them simple and straightforward. 5% cash back cards like the Discover it® Cash Back offer higher rewards on rotating categories but require more active management.

If you prefer a set-it-and-forget-it approach, a 2% card might be best. However, if you enjoy maximizing rewards in specific categories, a 5% card could be more rewarding. Both types have their catches: 2% cards may not offer as high rewards in specific categories, while 5% cards require tracking and activating categories, and rewards are often capped. The key is to choose based on your spending style and willingness to manage your rewards.

Is a 5% Cash Back Card Worth It?

A 5% cash back card can be highly rewarding, especially for strategic spenders. These cards offer 5% cash back on rotating categories like groceries, gas and dining, helping reduce the cost of everyday expenses.

For example, a family spending $500 monthly on groceries could earn $25 back each month. With no annual fee and 0% intro APR periods, these cards provide significant value for those who can maximize their rewards.

Get the Most Out of 5% Cash Back Cards

To maximize your rewards, use your card for purchases in the 5% cash back categories and track rotating categories if applicable. It's a good idea to combine a 5% card with a flat-rate cash back card for category and non-category spending, respectively. Always pay off your balance in full to avoid interest charges in the long run. Consider the highest cash back credit card with no annual fee to maximize net rewards.

Calculate Your Cash Back Rewards

Understanding your spending patterns is key in helping you choose the right cash back card. To make smarter spending decisions, take a look at MoneyGeek’s cash back calculator. This tool was designed to help you analyze your spending and find the best card for your needs. By knowing where you spend the most, you can maximize your rewards and get the most out of your credit cards.

FAQ: Cash Back Credit Cards

What does it mean when a credit card says 5%?

When a credit card offers 5% cash back, it means you earn 5% of your spending back as a reward in specific categories. This can add up quickly in high-spending areas such as groceries, gas stations, dining or travel. These high-reward categories often rotate quarterly, allowing you to earn significant cashback on your most frequent purchases if you plan strategically.

Is it better to use cash back or use points?

While cash back is straightforward and can be used as statement credits or direct deposits, points can offer higher value when redeemed for travel or other specific rewards but may require more effort to maximize depending on the spending categories you prioritize.

Are there any hidden costs associated with no annual 5% cash back credit cards?

5% cash back cards have typical credit card costs, like high interest rates and fees. The catch with 5% cards is that the rewards are challenging to maximize. The 5% cash back rates can be capped, not match your spending categories and/or require you to activate higher rates every month or quarter.

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For rates and fees of the Blue Cash Preferred® Card From American Express, please click here.

About Doug Milnes, CFA

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.

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*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Learn more about our editorial policies and expert editorial team.
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Best 5% Cash Back Cards of 2024

Overall Best: Chase Freedom Flex®

Grocery Rewards: Blue Cash Preferred® Card from American Express

Cash Back Match: Discover it® Cash Back

Targeted Spending: Citi Custom Cash® Card

What Is a 5% Cash Back Card and How Does It Work?

2% or 5% Cash Back Card?

Is a 5% Cash Back Card Worth It?

Get the Most Out of 5% Cash Back Cards

Calculate Your Cash Back Rewards

FAQ: Cash Back Credit Cards

What does it mean when a credit card says 5%?

Is it better to use cash back or use points?

Are there any hidden costs associated with no annual 5% cash back credit cards?