We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.
Cash back rewards are the easiest to redeem. Because you don’t have to worry about blackout dates or award seat availability. And on top of that, when you redeem cash back for travel, you’ll earn miles and points at the same time!
Million Mile Secret Agent Jay asked via email:
Which credit card is the best for cash back on all purchases?
Lots of folks love earning cash back because it’s easy to know exactly how much you are earning. And you don’t have to worry about whether or not you can book the travel you want.
I’ll help you decide!
Best Cash Back Cards for Everyday Spending
Some folks don’t want the hassle of deciding which credit card to use every time they make a purchase. And if you’re looking for one card to use for earning cash back all your purchases, here are 3 great options!
1. Citi Double Cash Card
Link: Citi® Double Cash Card
You’ll earn 1% cash back on all purchases you make with the Citi Double Cash card. And you’ll earn an additional 1% cash back when you pay for those purchases, as long as you make the minimum payment each month. But there are some restrictions:
- You will NOT earn cash back on credit card fees, interest, cash advances, money orders, and balance transfers
- Cash back expires if there is no activity on your card for 12 months
The card has no annual fee and no sign-up bonus. But you can still earn a lot. If you spend $650 a month for your car payment, insurance, and groceries, that’s $7,800 a year ($650 X 12 months). And you would earn $156 in cash back ($7,800 yearly expenses X 2%) from a card that’s free to keep!
You can redeem your cash back for gifts cards, a statement credit, or have it mailed as a check. And the minimum redemption amount is $25.
2. Bank of America Premium Rewards Credit Card
The Bank of America Premium Rewards card currently comes with 50,000 bonus points after you spend at least $3,000 on purchases in the first 90 days of account opening. The card also comes with:
- 2 points per $1 spent on travel and dining purchases
- 1.5 points per $1 spent on all other purchases
- $100 airline incidental credit (per calendar year)
- $100 Global Entry or TSA PreCheck credit (once every 4 years)
- NO foreign transaction fees
- $95 annual fee, NOT waived the first year
Each point is worth 1 cent. And you can redeem rewards for a statement credit, as a deposit into a Bank of America or Merrill Lynch account, gift cards, or travel purchases through the Bank of America travel center. You’ll need to redeem at least 2,500 points ($25) at a time.
This is a great card for folks who already have Bank of America accounts. Because you can earn even more if you’re a part of the Bank of America Preferred Rewards Program. Based on the amount of money you have in your Bank of America account or have invested with Bank of America or Merrill Lynch, you’ll earn:
- Preferred Rewards Gold members with $20,000 to $50,000 in assets – 25% bonus
- Preferred Rewards Platinum members with $50,000 to $100,000 – 50% bonus
- Preferred Rewards Platinum Honors members with $100,000 or more – 75% bonus
If you are a Preferred Rewards Platinum Honors member, you’ll earn ~2.62 points per $1 (1.5 points per $1 + 75% bonus) on all purchases. But you will need to register to qualify for the bonus.
3. US Bank Fidelity Rewards Visa Signature Card
You’ll earn 2% cash back on every purchase you make with the US Bank Fidelity Rewards Visa card. And there is no limit to the amount of cash back you can earn. This card has no sign-up bonus. But you don’t have to worry about an annual fee either.
You can deposit your rewards into eligible Fidelity accounts including, but not limited to:
- Traditional IRA
- Roth IRA
- Fidelity Charitable Giving Account
- Fidelity HSA
- Fidelity-managed 529 College Savings Plan accounts
The cash back is earned as points. You’ll earn 2 points per $1 spent and each point is worth 1 cent. You can deposit your rewards into more than 1 account. But you’ll need to redeem at least 5,000 points ($50) at a time.
If you’re looking to simplify your credit card rewards, earning cash back is a great option!
But if you have a lot of money invested with Bank of America or Merrill Lynch, the Bank of America Premium Rewards card can earn you even more. Because with the Bank of America Preferred Rewards Program you could earn up to a 75% bonus on top of the 1.5 points per $1 you’ll already get on all purchases.
What’s your favorite cash back card?