Getting 1% or 2% cash back is nice, but earning 5% can really boost your savings and turn your everyday purchases into great rewards. The trick is finding the right card and plan for how you spend your money. A 5% cash back card usually offers this high rate in certain spending areas, which often change every three months, or in categories you can pick yourself. These cards are made for smart shoppers who are willing to put in a little work to get the most money back.
Finding the best credit card with 5 cash back depends completely on where you spend your money. To help you get a quick look at your options, we’ve studied the top choices available. These cards are the best in their class, from changing categories to rewards you can customize, each offering a different way to earn more money.
Here is a summary comparison of the 5 cash back cards we’ll be covering in detail.
| Card Name | How 5% is Earned | Annual Fee | Our Rating |
|---|---|---|---|
| Discover it® Cash Back | Rotating quarterly categories | $0 | ★★★★☆ |
| Chase Freedom Flex℠ | Rotating categories + fixed bonus categories | $0 | ★★★★★ |
| U.S. Bank Cash+® Visa Signature® Card | Two user-chosen categories each quarter | $0 | ★★★★☆ |
| Citi Custom Cash® Card | Automatically on your top eligible spending category | $0 | ★★★★☆ |
| Prime Visa | Purchases at Amazon.com and Whole Foods | $0 (with Prime membership) | ★★★★★ |
In this guide, we’ll look closely at each of these top 5% cash rewards credit card options, help you choose the best one for your wallet, and share expert tips to get the most money back throughout the year.
Detailed Card Reviews
To really understand which card is right for you, you need to look beyond just the headline rate. Here, we break down how each card works, what fees they have, and their special features. We’ll explore how they work, who they’re best for, and the good and bad points you need to think about.
Discover it® Cash Back
The Discover it® Cash Back card has been popular for a long time and often works as a perfect starting point for people new to rotating category rewards. Its simple structure comes with one of the most generous welcome offers available. The card’s main appeal is its 5% cash back on everyday spending categories that change every three months, plus a special first-year bonus.
How the 5% Works
Cardholders earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter. You need to activate this feature. Common categories include Gas Stations, Grocery Stores, Restaurants, and Amazon.com. All other purchases automatically earn 1% cash back. Activation is easy through the Discover app or website, usually taking just two clicks. From our experience, Discover is helpful, sending multiple email reminders well before the quarterly deadline, so it’s hard to miss. The Cashback Match feature is a great perk: Discover automatically matches all the cash back you’ve earned at the end of your first year, with no limit. This effectively turns it into a 10% cash back card on bonus categories for the first year.
Card Details & Fees
- Annual Fee: $0
- Intro APR: 0% for 15 months on purchases and balance transfers.
- Regular APR: 17.24% – 28.24% Variable APR.
- Sign-up Bonus: Cashback Match at the end of the first year.
Pros & Cons
- Pros: Amazing first-year value with Cashback Match, no annual fee, consistently useful rotating categories, and an easy-to-use mobile app.
- Cons: Requires you to actively activate categories, the 5% earnings are limited each quarter, and Discover’s acceptance network, while strong in the U.S., can be less comprehensive abroad compared to Visa or Mastercard.
Who It’s For
This card is best for people new to rotating category cards who are organized enough to activate categories every quarter. The incredible first-year value from the Cashback Match makes it an unbeatable choice for anyone looking to get the most return on their spending.
Chase Freedom Flex℠
The Chase Freedom Flex℠ is a true powerhouse in the rewards world. It smartly combines the appeal of rotating 5% bonus categories with valuable fixed-rate rewards on everyday spending. This mixed approach makes it one of the most flexible and rewarding no-annual-fee cards available, making it more than just a standard credit card with 5 cashback.
How the 5% Works
Like the Discover card, the Freedom Flex offers 5% cash back on up to $1,500 in combined purchases in rotating bonus categories each quarter after activation. However, it doesn’t stop there. The card also provides a fixed rewards structure that is always active: 5% on travel purchased through the Chase Travel portal, 3% on dining at restaurants (including takeout and eligible delivery services), and 3% on drugstore purchases. All other purchases earn 1%. This multi-layered approach ensures you’re always earning a higher rate on a wide range of expenses.
Card Details & Fees
- Annual Fee: $0
- Sign-up Bonus: Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
- Intro APR: 0% intro APR for 15 months from account opening on purchases and balance transfers.
- Regular APR: 20.49% – 29.24% Variable.
Pros & Cons
- Pros: Multiple ways to earn 5% and 3% back, a strong sign-up bonus, and points can be combined with premium Chase cards (like the Sapphire Preferred or Reserve) to unlock even greater value for travel.
- Cons: The rotating 5% categories are still limited and require quarterly activation and tracking.
Who It’s For
This card is perfect for people who frequently go to restaurants and drugstores but also want to take advantage of rotating 5% categories. It’s an excellent main card for anyone building a strategy within the Chase Ultimate Rewards system, as it pairs perfectly with Chase’s premium travel cards.
U.S. Bank Cash+® Card
The U.S. Bank Cash+® Visa Signature® Card breaks away from traditional rotating category cards. Instead of being given categories by the bank, this unique 5 cash rewards credit card puts you in control. It allows you to choose your own bonus categories each quarter, offering a level of customization that no other card in the market provides.
How the 5% Works
Cardholders select two categories each quarter to earn 5% cash back. The spending cap is also more generous, at $2,000 in combined purchases per quarter across your two chosen categories. The list of eligible 5% categories is extensive and includes practical options often excluded by other cards, such as Home Utilities, Cell Phone Providers, Gyms/Fitness Centers, and TV, Internet & Streaming Services. In addition, you get to pick one 2% category (like Gas Stations or Grocery Stores) and earn 1% on everything else. You must re-select your categories each quarter.
Card Details & Fees
- Annual Fee: $0
- Sign-up Bonus: Often includes a cash bonus after meeting a minimum spending requirement in the first few months.
- Intro APR: Typically offers an introductory 0% APR on purchases and balance transfers.
- Regular APR: 19.99% – 29.99% Variable.
Pros & Cons
- Pros: You control your 5% categories, allowing you to align rewards with your specific budget. It includes useful, modern categories like streaming and utilities. The quarterly spending cap is higher than its main competitors.
- Cons: You must remember to choose and activate your categories each quarter. If you forget, all purchases default to 1%. The category choices, while broad, are from a predetermined list.
Who It’s For
This card is perfect for careful budgeters who have consistent, high spending in two specific areas. If a significant portion of your monthly budget goes to bills like your cell phone and home internet, this card allows you to earn top-tier rewards on expenses that other cards ignore.
Citi Custom Cash® Card
For those who love the idea of earning 5% cash back but dislike the chore of tracking or activating categories, the Citi Custom Cash® Card is the perfect solution. It offers the simplest path to a credit card cash back 5 percent rate by automatically adapting to your spending habits each month, making it a powerful “set it and forget it” option.
How the 5% Works
The card’s system is elegantly simple: you automatically earn 5% cash back on your top eligible spend category each billing cycle, on up to $500 in spending. All other purchases earn 1%. There is no enrollment or activation required. The card analyzes your spending and applies the 5% bonus to whichever eligible category you spent the most in. Eligible categories include Restaurants, Gas Stations, Grocery Stores, Select Travel, Select Transit, Select Streaming Services, Drugstores, Home Improvement Stores, Fitness Clubs, and Live Entertainment.
Card Details & Fees
- Annual Fee: $0
- Sign-up Bonus: Typically offers a cash bonus after meeting a minimum spending requirement.
- Intro APR: Often includes a lengthy 0% intro APR period on purchases and balance transfers.
- Regular APR: 19.24% – 29.24% Variable.
Pros & Cons
- Pros: Extremely simple to use with no activation needed. It automatically adapts to your monthly spending patterns, ensuring you always get a high rate on your biggest expense.
- Cons: The $500 monthly cap on 5% earnings is lower than the quarterly caps on rotating cards (equivalent to $1,500 per quarter). The 5% rate applies to only one category per billing cycle.
Who It’s For
This card is best for users who want to earn 5% on a single, consistent spending area without any hassle. It’s an excellent card to dedicate to one purpose, like your weekly grocery runs or your daily commute, letting you maximize rewards with zero effort.
Prime Visa
The Prime Visa demonstrates the power of a co-branded card for brand loyalists. While not a traditional rotating or choice-based card, it offers one of the highest and most consistent 5% rewards rates available, focused on one of the world’s largest retail ecosystems. For the right person, it is one of the best 5 back credit cards available.
How the 5% Works
This card’s value proposition is clear and powerful: you earn an unlimited 5% back on all purchases made at Amazon.com, the Amazon mobile app, and at Whole Foods Market. There are no caps on how much you can earn at this rate. To be eligible for the card and its 5% rewards rate, you must have an eligible Amazon Prime membership. The card also offers 2% back at restaurants, gas stations, and on local transit and commuting (including rideshare), and 1% on all other purchases.
Card Details & Fees
- Annual fee: $0
- Prime Membership Fee: An eligible Prime membership is required (currently $139 per year).
- Sign-up Bonus: Often includes a generous Amazon.com gift card upon approval.
- Regular APR: 19.49% – 27.49% Variable.
Who It’s For
This is a must-have card for frequent Amazon and Whole Foods shoppers. If you already pay for a Prime membership and do a significant portion of your shopping through Amazon, this card offers an unbeatable and effortless way to get 5% back on those purchases, turning your membership fee into a profitable investment.
Choosing Your Card
With several excellent credit cards 5 cash back options, the best choice is a personal one. It depends on your spending patterns and how much effort you’re willing to put into managing your rewards. Follow this simple framework to find your perfect match.
Step 1: Analyze Spending
The first step is to know where your money goes. Don’t guess—look at the data. Review your last three months of credit card and bank statements to identify your top spending categories. Use this checklist to tally your expenses:
- Groceries
- Gas Stations
- Restaurants / Dining Out
- Travel (Flights, Hotels)
- Streaming Services
- Home Utilities (Electric, Water)
- Cell Phone / Internet Bills
- Online Shopping (e.g., Amazon, Target.com)
- Drugstores
- Home Improvement
- Gyms / Fitness
- Rideshare / Transit
Step 2: Match to a Card
Once you have a clear picture of your spending, you can match it to the right card type.
- If your spending varies and changes with the seasons (e.g., more on travel in the summer, more on online shopping in the winter), a rotating category card like the Discover it® Cash Back or Chase Freedom Flex℠ is probably your best bet.
- If your spending is consistently high in two specific, predictable areas (like your utility and cell phone bills), consider the U.S. Bank Cash+® Card for its powerful customization.
- If you have one dominant spending category each month (like groceries or gas) that overshadows all others, the Citi Custom Cash® Card is designed for you, automatically rewarding that top spend.
- If you are loyal to one major retailer and spend a significant amount there, a co-branded card like the Prime Visa offers unbeatable and unlimited value.
Step 3: Consider Effort
Finally, be honest about your “effort tolerance.” The best rewards strategy is one you’ll actually stick with.
- Low Effort: If you want rewards without thinking, the automatic nature of the Citi Custom Cash® Card or the ecosystem consistency of the Prime Visa is ideal. They do the work for you.
- High Effort, High Reward: If you enjoy the “game” of maximizing rewards and don’t mind setting calendar reminders to activate categories, the rotating cards offer the highest potential. From our experience, managing one or two of these cards becomes second nature after a couple of quarters and the payoff is well worth the five minutes of effort every three months.
Maximizing Your Rewards
Getting a 5% cash back card is just the first step. To truly become a power user, you need to think strategically about how you use it. These simple strategies can help you multiply your rewards far beyond what a single card can achieve on its own.
The Card Pairing Strategy
This is the foundational strategy for any serious rewards earner. It involves combining a 5% cash back card with a high flat-rate card (one that earns 2% cash back on everything, for example).
The action plan is simple:
1. Use your 5% card exclusively for its designated bonus categories.
2. Use your flat-rate 2% card for all other purchases that would normally only earn 1%.
3. This two-card system creates a powerful rewards floor, ensuring you never earn less than 2% on any purchase, while still capitalizing on the lucrative 5% bonuses whenever they apply.
The Dynamic Duo Strategy
For the ultimate maximizer, combining two different rotating category cards can cover a huge portion of your annual spending at a 5% rate. The most popular combination is the Discover it® Cash Back and the Chase Freedom Flex℠.
Because their bonus categories sometimes overlap but often differ, holding both can be incredibly effective. Our analysis shows that this is a common strategy among rewards enthusiasts. For example, in Q1, Discover might offer 5% on Groceries while Chase offers 5% on Gas. By using the right card for each specific purchase, you cover two major household expenses at the maximum rate. This turns your wallet into a toolkit, with the right tool for every job.
Plan for Big Purchases
The banks that issue rotating category cards, like Discover and Chase, often publish their 5% cash back calendars for the full year in advance. Use this information to your advantage.
If you know you need to buy new tires and see that Q3’s bonus category is “Auto Parts,” it pays to wait a couple of months. If a new laptop is on your wish list, time the purchase for a quarter when a retailer like Amazon.com or a category like “Electronics Stores” is featured. A little bit of patience and planning can turn a $1,000 purchase from a $10 (1%) reward into a $50 (5%) reward.
Realities of 5% Cards
While 5% cash back is an exciting proposition, it’s crucial to have a realistic understanding of how these cards work. They are tools, and like any tool, they have limitations. Being aware of them helps you avoid common pitfalls and builds trust in your strategy.
Four Things to Watch For
- Spending Caps: That headline 5% rate is almost always capped. For a card with a $1,500 quarterly cap, the maximum bonus cash back you can earn in that category is $75 per quarter ($1,500 x 5%). While this is a fantastic return, it’s not unlimited. Know the cap and track your spending toward it.
- Activation Requirements: This is the number one mistake new users make. Forgetting to activate your quarterly categories on a card like the Discover it® or Chase Freedom Flex℠ means you’ll only earn the base 1% rate. We strongly recommend setting a calendar reminder for the first day of each new quarter (January 1, April 1, July 1, October 1) to activate your categories.
- The Risk of Overspending: The golden rule of rewards credit cards is to never spend money you don’t have just to earn cash back. The interest rates on these cards are high. The interest you’d pay on a carried balance will wipe out any cash back you earn, and then some. Always pay your bill in full and on time.
- Category Mismatches: Sometimes, a year’s rotating categories just won’t align with your spending habits. If the bonus categories are for travel and home improvement but you don’t plan on doing either, your effective cash back rate for that period will be low. In that case, a simple flat-rate card might serve you better.
The Verdict
So, are 5% cash back cards worth it? For the organized spender, 5 cash back cards are absolutely worth the effort. They represent one of the fastest ways to accelerate your savings by simply optimizing your everyday spending.
We’ve seen how these cards fall into distinct groups: rotating cards like the Chase Freedom Flex℠ offer variety, customizable cards like the U.S. Bank Cash+® offer control, automatic cards like the Citi Custom Cash® offer simplicity, and co-branded cards like the Prime Visa offer deep rewards for brand loyalty.
Ultimately, the most important piece of advice we can give is this: the best cash back credit card 5 percent option is the one that aligns with your actual spending habits and the level of effort you are willing to put in. By analyzing your budget, choosing the right card, and using the strategies outlined here, you can turn your daily expenses into a significant source of savings.
Ready to start earning? You can learn more or apply for these cards here:
