American Express Cash Magnet® Card
vs. Discover it® Cash Back Card

Both the American Express Cash Magnet® Card and the Discover it® Cash Back Card offer enticing cash back rewards and no annual fees, appealing to savvy spenders looking for value. However, if maximizing cash back on every purchase is your goal, the Amex Cash Magnet edges ahead with its unlimited 1.5% cash back. On the other hand, the Discover it Cash Back shines with its 5% cash back in rotating categories and the unique first-year cash back match, better for those who can take full advantage of the rewards.

Neither card is co-branded or a store card, ensuring their rewards are versatile. While the Discover card's rotating categories could be more lucrative, the consistent earning rate of the Amex Cash Magnet might be more straightforward for everyday spending.

You might prefer the Amex Cash Magnet if you value a straightforward rewards program with a flat cash back rate on all purchases. Its simplicity eliminates the need to track rotating categories, and the Amex Offers program can provide additional savings at select merchants.

You might prefer the Discover it Cash Back if you're adept at maximizing rewards in rotating categories and plan to use your card internationally. The absence of foreign transaction fees and the first-year cash back match can significantly boost your rewards, especially if you spend strategically in the bonus categories.

Evaluating APRs, fees, rewards and other features clarifies which card aligns with your financial habits. For instance, if you prefer consistent rewards, the Amex Cash Magnet's unlimited 1.5% cash back could appeal to you, whereas the Discover it Cash Back may be more attractive if you can maximize the 5% reward in rotating categories.

The Amex Cash Magnet maintains simplicity with an unlimited 1.5% cash back on all purchases. This flat rate is appealing for its ease of use and consistent return on spending. In contrast, the Discover it Cash Back card caters to the strategic spender with 5% cash back on rotating categories each quarter, up to a quarterly maximum, and 1% on other purchases. While the Discover card requires more engagement to maximize rewards, it can yield higher cash back in those bonus categories.

The Amex Cash Magnet provides a steady and uncomplicated rewards structure for those who prefer not to track rotating categories. However, the Discover it Cash Back's rotating categories can be particularly rewarding if your spending aligns with them. These categories are announced quarterly, and it's worth checking Discover's website to plan your spending accordingly.

The table below details the bonus categories for each card's rewards programs.

Both the Amex Cash Magnet and Discover it Cash Back offer flexibility in redemption options. With the Amex Cash Magnet, you can redeem your cash back for statement credits, merchandise or gift cards. Your rewards do not expire.

Discover it Cash Back allows redemption for gift cards, donations, account credits and more. You also have the added option of direct deposit or using rewards at checkout with select retailers. However, while Discover's cash back does not expire, it will be forfeited if the account is inactive for 18 months.

MoneyGeek reviews credit cards like the Amex Cash Magnet and Discover it Cash Back using a tailored scoring system for various use cases. In this comparison, each card's score reflects its best-performing category. Amex Cash Magnet leads in cash back rewards, and the Discover it Cash Back excels in balance transfer options.

The scoring for cash back considers factors such as reward rates and issuer satisfaction; for balance transfers, it's introductory APRs and regular APRs.